Tractor company fined Rs40 million for misleading diesel savings claim

The Competition Commission of Pakistan (CCP) has imposed a fine of Rs 4 crore on Al-Ghazi Tractors Ltd for disseminating a misleading advertisement that falsely claimed 30% diesel savings compared to competitors.

According to the CCP, the company’s advertisement incorrectly cited the Agricultural Mechanization and Research Institute (AMRI), Multan as the source of the diesel efficiency claim.

Upon investigation, the institute confirmed that it had not issued any such certificate or endorsement to Al-Ghazi.

The commission determined that Al-Ghazi’s diesel-saving claim was baseless and unsubstantiated, amounting to deceptive marketing that misled consumers, particularly farmers making significant one-time investments in tractors.

The false claim also included unfair comparisons with rival companies, further misleading the public.

CCP Chairman Dr. Kabir Sidhu stressed the serious consequences of such misleading practices, especially when they affect small farmers who can be financially burdened by deceptive claims. He urged all businesses to avoid collusion and price-fixing, warning of strict action against violators.

Consumers and stakeholders are encouraged to report cartelization and unfair practices to the Commission to ensure a fair and competitive market environment.