Caravan maker sued over off-road claims
The Australian Competition and Consumer Commission (ACCC) filed the legal suit in the Federal Court on Thursday.
The ACCC alleges certain Jayco ads depict recreational vehicles being used off-road and on 4WD-only tracks when the caravans are not designed for such rough and tumble conditions. Jayco's warranties for the particular caravans also expressly exclude using the recreational vehicles on 4WD-only tracks.
'We allege Jayco misled consumers by advertising the RVs (recreational vehicles) in terrain in which they were not designed to be used and were not covered by its warranty,' ACCC deputy chair Mick Keogh said in a statement. One of the advertisements the consumer watchdog is concerned about shows a Jayco caravan in Queensland's Kinkuna National Park, which only 4WDs are allowed to drive into. ACCC Credit: Supplied
'When a product is depicted in advertisements in a particular setting, or claims are made about it, consumers have a right to expect such images and words reflect the intended use of the product.'
NewsWire has contacted Jayco for comment. Jayco is Australia's largest RV manufacturer, founded in Victoria in 1975.
The ACCC is seeking a full suite of penalties, injunctions, publication orders, legal costs and a declaration of wrongdoing from Jayco.
The caravan models the ACCC is concerned with are in Jayco's Outback and Adventure ranges, with models ranging in price from $19,000 to $113,000. The RV shown in this ad was not covered under warranty for damage caused by water crossings. ACCC Credit: Supplied
Advertisements for the Crosstrak model show the caravan being towed by a 4WD through water that is halfway up the caravan tyres and lapping at the bottom of the 4WD's passenger doors. Other ads for the Crosstrak show the caravan being towed through Queensland's Kinkuna National Park, which is restricted to only 4WDs.
The ACCC says since January 2020, Jayco has promoted RVs with phrases such as 'purpose-built off-road hybrid RV', 'built with off-road travel at the forefront', 'all terrain', and 'designed specifically for off-road adventures'.
But the RV warranties from Jayco did not cover damage from water crossings, damage from use on corrugated and uneven surfaces or any damage from use on 4WD-only tracks, the ACCC filing said.
Mr Keogh said RVs were expensive purchases and buyers were misled.
'We are concerned that consumers were deprived of the ability to make informed purchasing decisions which might have led them to buy a different RV that was more suitable for their needs,' Mr Keogh said.
'RVs are a significant purchase for consumers, and as a result of Jayco's ads, consumers may have paid a premium over and above the cost of other standard model RVs based on the alleged misrepresentation that they could be used 'off road'.'
Following a similar 2017 case, Jayco was ordered to pay a $75,000 fine in May 2021.
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