‘Proud legacy’: Caravan maker Jayco to defend off-road lawsuit

An iconic Australian company is being sued over claims its products can tackle the rugged outback.

Caravan maker Jayco will “vigorously defend” a lawsuit filed by the consumer watchdog over a dispute concerning its advertisements and product warranties.

The Australian Competition and Consumer Commission (ACCC) filed the 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, the ACCC will argue.

In a statement to NewsWire, a Jayco spokesperson said the company categorically denied the advertisements were at odds with product warranties.

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. Picture: ACCC

“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,” the spokesperson said.

Jayco had engaged with the ACCC over the course of 20 months, providing detailed documents and submissions, the spokesperson said.

“Jayco has a proud legacy spanning over 50 years as Australia’s leading manufacturer of over 275,000 RV 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.

“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.”

The ACCC is suing Jayco and seeking a full suite of penalties, injunctions, publication orders, legal costs and a declaration of wrongdoing from Jayco.

The RV shown in this ad was not covered under warranty for damage caused by water crossings. Picture: ACCC

“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.

“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.”

Jayco is Australia’s largest RV manufacturer, founded in Victoria in 1975.

The caravan models the ACCC is concerned with range in price from $19,000 to $113,000.

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.

Originally published as ‘Proud legacy’: Caravan maker Jayco to defend off-road lawsuit