Rs40mn CCP penalty: Al-Ghazi Tractors says ‘will take appropriate legal steps'
The company said this in a notice to the Pakistan Stock Exchange (PSX).
'With reference to recent news circulating in media regarding the imposition of penalty on Al-Ghazi Tractors Limited ('the company') by Competition Commission of Pakistan, the company is reviewing the details and will take appropriate legal steps as needed,' the notice read.
The CCP has imposed a penalty of Rs40 million on AGTL for 'violating competition law and misguiding consumers', according to a CCP statement 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.
'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.
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