Major Pakistani Brands Fined in Nationwide Crackdown on Deceptive Advertising

In a sweeping enforcement campaign to uphold consumer rights and market transparency, the Competition Commission of Pakistan (CCP) has imposed over Rs 1 billion in fines on several high-profile companies found guilty of misleading advertising and deceptive marketing tactics during fiscal year 2024–25. The action sends a clear signal that even the country’s most recognized brands are not above the law.

Among the most heavily penalized was Kingdom Valley (Pvt) Ltd., a real estate developer fined Rs 150 million for falsely claiming its housing project was located within Islamabad city limits and endorsed by federal schemes like the Naya Pakistan Housing Program (NPHP) and the Naya Pakistan Housing and Development Authority (NAPHDA). The CCP ruled that the company’s advertisements misled consumers in violation of Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010.

In the fast-moving consumer goods (FMCG) sector, Unilever Pakistan and FrieslandCampina Engro Pakistan were each fined Rs 75 million for marketing frozen desserts as traditional dairy ice cream—a practice deemed intentionally misleading. Unilever received an additional Rs 60 million penalty for unsubstantiated health claims in its Lifebuoy product advertisements, which, according to the CCP, created a false impression of medical effectiveness.

Auto industry giant Hyundai Nishat Motors was fined Rs 25 million for advertising an “introductory price” for the Hyundai Tucson SUV that was valid for less than a day, with key terms hidden in hard-to-read fine print. The CCP categorized the tactic as bait advertising intended to attract consumers under false pretenses.

Other firms hit with penalties included Al-Ghazi Tractors (Rs 40 million) for exaggerated fuel efficiency claims, 3N Lifemed Pharmaceuticals (Rs 2 million after appeal) for falsely claiming global certifications, and educational and consumer brands like British Lyceum and Diamond Paints, both fined Rs 5 million each for misleading promotional content.

CCP Chairman Dr. Kabir Sidhu stated that the crackdown reflects a commitment to faster adjudication and tighter regulation of misleading business practices. “These penalties are not symbolic—they are a warning to the market that dishonest advertising will not be tolerated,” he said in a statement.

This aggressive enforcement drive is part of a broader effort to restore consumer trust and level the playing field for honest businesses. Whether these companies amend their practices remains to be seen, but for now, the message from the CCP is unambiguous: truth in advertising is no longer optional.