In a major blow to deceptive advertising practices in the agriculture sector, the Competition Commission of Pakistan (CCP) has imposed a Rs. 40 million fine on Al-Ghazi Tractors Limited (AGTL) for falsely claiming “up to 30% extra diesel savings” in its New Holland tractor models.
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The CCP found the claim, published in a front-page ad in January 2022, to be misleading and unsupported by facts. The bench, led by Chairman Dr. Kabir Ahmed Sidhu and Member Salman Amin, ruled that AGTL violated Section 10 of the Competition Act by misguiding consumers, particularly small-scale farmers who rely on fuel efficiency claims to make long-term equipment purchases.
🚩 The False Claim: 30% Extra Diesel Savings: AGTL had attributed its fuel efficiency claim to a report by the Agricultural Mechanization Research Institute (AMRI), Multan. However, CCP’s investigation revealed:
- AMRI never endorsed the 30% savings claim.
- The cited report only compared two tractor brands — not the whole market.
- AMRI had warned AGTL against misusing its name and asked for retraction of the ad.
- The report contained general energy-saving tips, not model-specific performance data.
Despite AMRI’s objections, AGTL continued to promote the claim publicly.
⚖️ Legal Challenge & CCP Verdict: AGTL’s legal team challenged the CCP’s show cause notice issued in January 2024, arguing procedural flaws and misinterpretation of the ad. However, the Commission ruled that the evidence was sufficient under Section 30 of the Competition Act, and a full inquiry under Section 37 was not required.
The ruling stressed that false marketing practices targeting vulnerable segments like farmers carry significant economic consequences. A tractor, for most farmers, is a once-in-a-decade purchase — and misleading claims can have long-term financial repercussions.
