Govt warns against illegal use of "Federation," "Chamber," and "Association" titles by unlicensed trade bodies

The Directorate General of Trade Organizations (DGTO), under the Ministry of Commerce, has issued a warning against the illegal use of protected trade body titles, including "Federation," "Chamber," and "Association." The regulator emphasized that only organizations licensed by the DGTO are allowed to use these titles, as mandated under the Trade Organizations Act, 2013 (TOA 2013).

In a statement released on Thursday, the DGTO reminded the public that it is the sole authority responsible for licensing and regulating trade bodies in Pakistan. The notice highlighted Section 3(1) of the TOA 2013, stating that no organization can function as a trade body without proper registration with the federal government.

The DGTO also referred to Section 5(3) of the Act, which prohibits the use of terms like "Federation," "Chamber," and "Association" in the name or title of any entity unless the organization is officially licensed and registered with the DGTO.

The regulator noted an increase in cases where individuals or groups were operating unauthorized bodies under these protected titles, misleading the business community and creating confusion in the market.

Additionally, the DGTO clarified that the exemption under Section 5(3) applies only to entities formed for non-commercial purposes, such as promoting art, science, religion, charity, or sports. The exemption does not extend to groups engaged in trade, commerce, industry, or services.

The notice warned that all unauthorized entities must immediately cease and desist from using these titles, or face strict penalties, including fines, personal liability, and disqualification from participating in any registered trade organizations.

The DGTO also advised businesses to avoid joining unlicensed bodies, as they lack legal status. The business community was urged to verify the licensing status of any trade organization with the DGTO before engaging with them in any capacity.