Caravan and recreational vehicle manufacturer Jayco is facing court charges over making misleading representations while advertising certain models of its RVs in ‘off-road’ conditions.
Since 2020, Jayco has represented its Outback, All Terrain and CrossTrak RVs as designed for off-road and/or four-wheel drive tracks, when that was not the case, the Australian Competition & Consumer Commission alleges.
In its proceedings in the Federal Court, the ACCC alleged that the RVs were not designed for such conditions, as specified in Jayco’s warranty, and that the vehicles were not designed for use in terrains with hard impacts, heavy landings or rutted terrain.
“When a product is depicted in advertisements in a particular setting, or claims are made about it, consumers have a right to expect that such images and words reflect the intended use of the product,” said ACCC deputy chair Mick Keogh.
The ACCC also alleged that the company did not disclose, or adequately disclose these facts in its promotional materials and that the warranty for the relevant RVs would not cover such use.
The ACCC cited Jayco’s website, social media profiles, brochures, and point-of-sale advertising, including trade shows, in its allegations.
“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,” 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 commission is seeking declarations, penalties, injunctions, costs, and compliance and publication orders in its federal proceedings against Jayco.
Jayco said in a statement sent to Inside Retail that it “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.”
