The Competition Commission of Pakistan (CCP) has levied a fine of Rs40 million on Al-Ghazi Tractors Limited (AGTL) for running a misleading advertisement that falsely claimed its tractor models delivered up to 30% more diesel efficiency.
The decision was made by a CCP bench led by Chairman Dr. Kabir Ahmed Sidhu and Member Salman Amin, based on an advertisement published by AGTL on January 24, 2002. The ad claimed that the company’s Holland tractor models provided “up to 30 percent extra diesel savings compared to any competitor’s tractors.”
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To support its claim, AGTL cited a report from the Agriculture Mechanization Research Institute (AMRI), Multan, which was intended to lend credibility to the fuel efficiency statement. However, upon investigation, the CCP found that AMRI had not validated or endorsed any such claims.
The CCP emphasized that with over 60% of Pakistan’s population involved in agriculture, such false advertising can lead to significant financial harm to farmers who depend on accurate product information. A supposed 30% fuel saving could translate to thousands of rupees in expected but unrealized savings.
Complaints from industry stakeholders prompted the CCP to initiate the inquiry. It was discovered that the AMRI report merely compared AGTL tractors with those of Millat Tractors under limited conditions and did not substantiate the sweeping fuel efficiency claim made by the company.
