ISLAMABAD, May 14, 2025 — The Competition Commission of Pakistan (CCP) has imposed a substantial penalty of Rs40 million on Al Ghazi Tractors Limited for engaging in deceptive marketing that misled consumers about the performance of its products.
Al Ghazi Tractors, a company listed on the Pakistan Stock Exchange and a prominent manufacturer of tractors in the country, ran a marketing campaign claiming that its new Holland tractors, launched under the 2022 model range, offered “30% extra diesel savings compared to any competitor’s tractors.” Upon investigation, the CCP determined this assertion to be false and lacking a reasonable basis.
The CCP’s inquiry concluded that such a claim not only exaggerated the performance of Al Ghazi’s tractors but also had a significant impact on consumer behavior by creating a misleading impression of fuel efficiency superiority. According to the commission, the marketing tactics employed distorted fair competition by unfairly influencing buyers’ decisions.
As part of its findings, the CCP emphasized that financial penalties serve as both punishment and deterrent. The Rs40 million penalty consists of Rs30 million for promoting misleading information regarding product characteristics and an additional Rs10 million for disseminating false comparative advertising — practices that undermine market transparency.
The commission noted that the advertisement in question was widely published in print media across Pakistan and lacked credible evidence to substantiate the diesel savings claim. The CCP underscored the need to curb such marketing misrepresentations, which damage both consumer trust and market competition.
By holding Al Ghazi Tractors accountable, the CCP aims to set a precedent that deters similar companies from resorting to deceptive marketing practices. The commission also called on manufacturers, particularly in the tractors industry, to ensure truthful and evidence-based advertising.
This ruling reinforces the CCP’s commitment to upholding consumer rights and promoting fair competition, especially in essential sectors like agriculture where tractors play a pivotal role in the economy.