Jayco sued over 'off-road' advertising claims

Jayco is heading to the Federal Court after the Australian Competition and Consumer Commission (ACCC) launched legal proceedings over allegedly misleading advertising around some of its off-road models.

The Australian consumer watchdog is alleging that since January 2020, Australia's biggest caravan manufacturer made misleading representations when advertising Jayco Outback, All Terrain, and CrossTrak models in 'off road’ conditions including 4WD-only tracks.

The ACCC alleges Jayco’s advertising (as seen on its own website, social media, brochures, and at shows) depicted the caravans on unsealed or rocky roads, sand, water crossings, and 4WD-only tracks.

However, the consumer watchdog alleges that Jayco did not adequately disclose, in its promotional materials that they weren't designed for use on these types of off-road surfaces, and that the warranty wouldn't cover such use.

The ACCC also alleges that Jayco made misrepresentations that its All Terrain 'vans were designed for use on all types of terrain, when they were not designed for use on tight undulating or 4WD only tracks, or punishing terrain with hard impacts, heavy landings or deep ruts.

It also alleges that Jayco used misleading references to “4WD” or “off-road” in its advertisements, including statements like "our toughest off-roader, purpose-built to tackle the tough Australian terrain”, “designed specifically for off-road adventures” and "can tackle just about any terrain”.

“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 Outback, CrossTrak and All Terrain models ranged in price from approximately $19,000 to $113,000 during the relevant period, depending on the model and options.

“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’.”

Jayco said in a statement that it will "vigorously defend the claims brought by the ACCC".

“After nearly 20 months of engagement with the Australian Competition and Consumer Commission (ACCC), and despite the ACCC seeking and being provided with detailed submissions and documentation from Jayco Corporation Pty Ltd (Jayco), the ACCC has decided to commence proceedings in the Federal Court of Australia alleging contraventions of the Australian Consumer Law,” a Jayco spokesperson said.

“Jayco categorically denies that any of its advertising or promotional materials misrepresented or misled consumers about the off-road capabilities of its Outback, CrossTrak and All Terrain recreational vehicles (RVs), when compared to the terms of the Jayco Warranty or otherwise.

“Jayco will vigorously defend the claims brought by the ACCC and thereby seek to vindicate its reputation as a manufacturer of high quality Australian products.

“Jayco has a proud legacy spanning over 50 years as Australia’s leading manufacturer of over 275,000 RVs and caravans, with an unwavering commitment to quality, safety, and customer support. Jayco will continue to stand behind its products, its Warranty, its people and its customers as it defends the claims through the legal process.”

Unlike many Australian RV manufacturers, Jayco lists on its website the full terms and conditions of the warranty it provides, which includes two-years' manufacturing and five-years structural cover, as well as providing answers to a number of commonly-asked questions relating to warranty cover. 

The ACCC said it is seeking declarations, penalties, injunctions, compliance and publication orders, and costs.

It's not the first time Jayco has been taken to the Federal Court by the ACCC, with Jayco fined $75,000 in 2021 for misleading a buyer about their consumer guarantee rights.

The ACCC has also shone the spotlight on a range of widespread consumer-related issues in the Australian caravan industry, including publishing a consumer survey report in 2022 that found 80 per cent of new caravan buyers experienced problems.

Related: ACCC cautions Australian caravan industry
Related: Federal Court finds Jayco misled consumer
Related: Call for off-road caravan ratings
Related: Do I need extra off-road caravan protection?
Related: The truth about off-road caravans
Related: Do you need an extended warranty?