CCP issues show cause notice to Green Field Developers for ‘deceptive marketing practices’




The Competition Commission of Pakistan (CCP) has issued a show cause notice to M/s Green Field Developers (Pvt.) Ltd for prima facie deceptive marketing practices in one of its residential housing schemes by the name of ‘Green City’.

An enquiry conducted by the CCP against the Green Field Developers under Section 37(1) of the Competition Act, 2010, found that the company launched a housing scheme by the name of ‘Green City’ in Fateh Jang after obtaining No Objection Certificate (NOC) from the Tehsil Municipal Administration (TMA). However, the marketing campaign run by the Green Field Developers for Green City through its website, brochures and advertisements claimed that the housing scheme ‘Green City’ was based in Islamabad. In the marketing campaign, the company also claimed affiliations with various government departments and bodies through the display of logos on its website and brochures.

The enquiry concluded that the company failed to substantiate its claims regarding the location of the housing scheme, ‘Green City’, and thus, prima facie, violating Section 10 2(b) of the Competition Act. Moreover, the enquiry further observed that the prima facie deceptive marketing campaign of Green Field Developers could also harm the business interests of its competitors in Fateh Jhang as well as in Islamabad.

The show cause notice has been issued under Section 30 of the Competition Act, 2010 and the company has been directed to respond within 14 days.

The Office of Fair Trade of the CCP is engaged in the prevention of deceptive marketing practices in order to protect the consumers. CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive behavior including deceptive marketing practices.