Stronger lemon caravan laws for Queensland

The Queensland government has introduced tougher ‘lemon laws’, to provide greater protection for buyers in that state of poorly-built ‘lemon’ vehicles, including cars, motorhomes and caravans.

As promised in late-2017, the tougher consumer protection laws raise the small claims tribunal limit from its current $25,000 limit to $100,000.

“This legislation means if a consumer cannot obtain a suitable remedy in negotiation with the dealer or manufacturer under Australian Consumer Law (ACL), they have the option of seeking a remedy through QCAT (Queensland Civil and Administrative Tribunal) or the courts,” Queensland Attorney-General Yvette D’Ath said.

“We know the financial and emotional pain that is caused when things continually go wrong with a newly purchased vehicle. It shouldn’t happen, but if it does consumers should have the right to demand a refund or replacement.”

The tougher consumer laws brings Queensland more into line with other states, although NSW and Victoria have no limit for new vehicle claims.

Consumer advocate Tracy Leigh of Facebook group Lemon Caravans & RVs in Aus welcomed the legislative amendments, saying it will give “thousands of 'lemon' vehicle owners, including those with lemon RVs, access to affordable justice”.

“The sad reality is that this is necessary because the new RV manufacturing and retailing industry simply refuse to comply with the Australian Consumer Law on a systemic basis,” Leigh said.

“Queensland Office of Fair Trading has its hands tied because it isn't an offence to breach the ACL consumer guarantee remedies, the industry knows and exploits this, and so a consumer is left on their own to take private legal action against very cashed up companies with very deep pockets.”

However, Caravan Industry Association of Australia CEO Stuart Lamont recently said that tougher lemon laws would place “an unjustifiable and an unreasonable burden compliance burden on RV manufacturers and retailers, the vast majority, of whom, are busy running and growing their enterprises, including employing many thousands of Australians and contributing to the nation’s economy”.

“These are small businesses who can ill afford to expend the resources both financially and in terms of time of challenging the many untruths that continue to be perpetrated in social media or having to deal with vexatious claims,” Lamont said.

However, Leigh disputed this, claiming that "compliance in fact costs far less than they claim. I have it on good authority that to employ a licensed electrican and gas fitter (which is mandatory but not happening in many cases) will cost less than $1000 per caravan, over and above the current wages paid for those jobs. Quality control is severely lacking, both by manufacturers and dealers".

She also said that buyers of poorly-built caravans usually only turn to social media as a “last resort”.

“Social media is usually an option of last resort when the consumer has hit brick walls everywhere they turn,” she said. “And there are thousands of them. Naming and shaming has consequences to businesses and empowers consumers to have a voice they never previously had.

“The industry shouldn't be scared of 'lemon laws' and easier access to justice for consumers if they are making defect free, safe and durable products. This is nothing new. It was part of the Trade Practices Act before the ACL (Australan Consumer Law) was introduced in 2011. It should be the status quo right now. Sadly it isn't.”

Lamont said that that all RV buyers are “entitled to products that are safe and compliant with Australian Design Rules” but that would be best achieved “by the Federal Government ensuring that the Road Vehicle Standards Act received its third and final reading, without further delay, when the next Senate sitting takes place next month”.

“The inability to modernise the existing 1989 Motor Vehicle Standards Act has fuelled calls and an ill-informed social media campaign demanding lemon laws due to a small number of unhappy caravan owners who’ve experienced major faults and problems, many of which are vexatious or may not have occurred had the Road Vehicle Standards Bill come into force,” he said.

According to Lamont, research indicates that after 12 months, 90 per cent of Australian RV buyers “remain happy with their purchase”.

“Safety is paramount, and where there is a genuine problem the consumer should rightfully expect remedial action.  Businesses however should also have the right of reply and the opportunity to fix any issue,” he argued.

“We are seeing too many occasions where consumers are placing unreasonable and unlawful demands on industry businesses. This is where it is important that the two pieces of legislation need to work better together for positive outcomes for all concerned.”