Source: Australian Ministers for Regional Development
The ACCC has instituted proceedings in the Federal Court against Jayco Corporation Pty Ltd (Jayco), Australia’s largest caravan and recreational vehicle manufacturer, for making allegedly misleading representations when advertising certain models of its RVs in ‘off road’ conditions.
The ACCC alleges that since January 2020, Jayco engaged in misleading or deceptive conduct and made false or misleading representations to consumers by representing that its Outback, All Terrain and CrossTrak RVs were designed for use off-road and/or on four-wheel drive (4WD) only tracks when, in fact, they are not.
“We allege Jayco misled consumers by advertising the RVs in terrain in which they were not designed to be used and were not covered by its warranty,” ACCC Deputy Chair Mick Keogh said.
“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.”
The ACCC alleges Jayco’s advertising depicted the RVs in various off-road conditions, including on unsealed or rocky roads with significant rutting or undulations, sand or beaches, water crossings, 4WD only tracks or specified locations that are only accessible by 4WD only tracks.
In fact, the ACCC alleges the RVs were not designed for use off-road, on 4WD only tracks, or in the off-road conditions shown in its advertisements. In particular, as described in Jayco’s warranty, the RVs were not designed for use or towing on 4WD only tracks, terrain with hard impacts, heavy landings or rutted roads or tracks.
The ACCC also alleges that Jayco did not disclose, or adequately disclose, in its promotional materials that the relevant RVs were not designed for use off-road and/or on 4WD only tracks, and that the warranty for the relevant RVs would not cover such use.
Separately, the ACCC alleges Jayco made misrepresentations that its ‘All Terrain’ RVs were designed for use on all types of terrain, when in fact the All Terrain RV was not designed for use on terrain with hard impacts, heavy landings, rutted roads, tight undulating tracks or roads or 4WD only tracks, and therefore was not designed for use on all types of terrain.
The ACCC’s case concerns Jayco’s promotion of its RVs on its own website, social media profiles, brochures, and point of sale advertising, including at 4WD and trade shows.
Example of Jayco advertising – Instagram post depicting an Outback RV being towed by a 4WD vehicle through “Kinkuna National Park”, which is only accessible by 4WD vehicles
Jayco Facebook post and embedded video, depicting a CrossTrak RV being towed behind a 4WD vehicle through a range of off-road conditions including water crossings.
In addition to the images described above, Jayco also used references to “4WD” or “off-road” in its advertisements, as well as statements such as:
- “purpose-built off-road hybrid RV”;
- “built with off-road travel at the forefront”;
- “can tackle just about any terrain”;
- “designed specifically for off-road adventures”;
- “our toughest off-roader, purpose-built to tackle the tough Australian terrain”;
- “purposely made to take the road less travelled”; and
- “All Terrain”.
“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’.”
The ACCC is seeking declarations, penalties, injunctions, compliance and publication orders, and costs.
Background
Jayco is the largest manufacturer of RVs in Australia and sells its vehicles through 29 dealerships across Australia. It promotes and supplies numerous RVs to Australian consumers and typically groups them in ranges. During the relevant period, these included Jayco’s ‘Outback’ and ‘Adventure’ ranges.
The Adventure range included the CrossTrak and All Terrain models, and the Outback range comprised standard model RVs that had been modified with an “Outback upgrade” Jayco promotes the upgrade as providing higher ground clearance, added strength, and upgraded suspension and wheels. The Outback upgrade is an additional cost above a standard model RV.
The Outback, CrossTrak and All Terrain RVs ranged in price from approximately $19,000 to $113,000 during the relevant period, depending on the model and options.
In May 2021, Jayco was ordered to pay a $75,000 penalty for making a false or misleading representation to a consumer about their consumer guarantee rights, after the Court dismissed other allegations in a case brought by the ACCC in November 2017.
In July 2022, following a survey of consumers and suppliers, the ACCC published the New caravan retailing report, which highlighted some areas of concern the ACCC had identified in the caravans industry.
Concise statement
This document contains the ACCC’s initiating court document in relation to this matter. We will not be uploading further documents in the event these initial documents are subsequently amended.