‘False fuel saving claim’: CCP imposes Rs40mn penalty on Al-Ghazi Tractors

The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs40 million on Al-Ghazi Tractors Limited (AGTL) for “violating competition law and misguiding consumers”, a statement from the CCP said on Tuesday.

In January 2022, AGTL ran a front-page ad in an Urdu newspaper, claiming its new Holland tractor models offered “up to 30% extra diesel savings compared to any competitor’s tractors.” The ad cited a report by the Agricultural Mechanisation Research Institute (AMRI), Multan as basis of its claim.

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“Farmers across Pakistan, especially small landholders often make purchasing decisions based on savings and efficiency. For them, a claim like “up to 30% extra diesel savings” can mean the difference between affordability and hardship.

“But this claim, made by Al-Ghazi Tractors Limited in a newspaper ad, has now been declared false and misleading by the Competition Commission of Pakistan. The bench comprising Dr Kabir Ahmed, the Chairman CCP and Mr Salman Amin (Member) has imposed a penalty of PKR 40 million on AGTL for violating competition law and misguiding consumers,” the CCP statement read.

According to the CCP, it found that AMRI had not issued any report supporting the claim.

“In fact, AMRI had warned AGTL to stop using its name for false claim and to retract the advertisement.”

The AMRI report, which AGTL selectively quoted, only tested tractors from two manufacturers—AGTL and one competitor, the CCP said. “It did not provide market-wide fuel efficiency comparisons. AMRI also emphasised that its report contained general energy-saving tips, not certification of any tractor model’s performance.”