ACCC cautions caravan industry

The Australian Competition & Consumer Commission (ACCC) has warned the caravan industry that quoting misleading prices and weights for caravans may result in strong enforcement measures against retailers, as each practice is in breach of Australian Consumer Law.

According to a recent ACCC media release, in one example a small retailer had given multiple customers a fixed price for a caravan they had ordered, but then subsequently sought to increase the price. The retailer did give the customers the option of cancelling the order.

The contract also allowed the retailer to pass on manufacturer price increases, despite the fixed price representation.

Instances of false or misleading caravan weights have also been investigated.

Related: ACCC slams dodgy caravan suppliers

The ACCC says it has been investigating the practices of several caravan retailers, and has already received commitments from two smaller operations to improve disclosures to consumers and consumer law compliance.

“Businesses must not mislead consumers about prices or contractual terms relating to pricing,” ACCC Commissioner Liza Carver said.

“Businesses must also ensure they do not mislead consumers about important features of a product, such as the weight, or tonnage, of a caravan.

“We are concerned that several small and mid-sized caravan retailers may be failing to comply with their obligations under the Australian Consumer Law, and we will continue to investigate complaints and engage with retailers and caravan manufacturers to ensure compliance,” Ms Carver said.

“It’s important that businesses of all sizes appreciate they have the same obligations to consumers under the Australian Consumer Law as large retailers.”

The ACCC’s investigations follow the publication of the ACCC’s

“Caravans are significant purchases for consumers and when things go wrong the harm can be significant. We received several complaints from consumers regarding caravans and carefully investigated the issues raised with us,” Ms Carver said.

One smaller caravan retailer has formally committed to not increasing prices for relevant consumers, while it has also removed the representations in question from its website and marketing material. It has also committed to training its staff to improve consumer law compliance.

Another retailer was found to be representing caravan weights as precise weights, when they were only estimates of reference weights for similar vans.

Misrepresenting weights can lead to consumers paying more for a more powerful tow vehicle they may not necessarily need, and can unwittingly let owners exceed safe towing limits.

The retailer has since committed to improving its guidance and processes to ensure it discloses key caravan weight information before sale, and provides alternatives where the actual weight differs from the estimate.