ACCC warns the caravan industry to stop telling porkies

The Australian Competition and Consumer Commission (ACCC) has cautioned the caravan industry about making misleading representations in advertising, warning that this is in breach of the Australian Consumer Law and may result in strong enforcement action being taken against retailers. 

The ACCC recently cited a case involving a retailer who assured customers of a fixed price for their ordered caravans but later attempted to increase the price, albeit with an option to cancel the contract. This was despite the contract permitting the passing on of manufacturers’ price hikes. Additionally, concerns were raised about inaccurate representations of caravan weights. 

Concerns were raised with one smaller caravan retailer about price certainty representations, and the retailer has now formally committed to honour prices for relevant consumers. The representations have also been removed from the retailer’s website and marketing materials, and they have committed to arrange training for staff to improve compliance with the ACL.

The ACCC also engaged with another caravan retailer over weight misrepresentation where they advertised the caravan weight as precise when for some, they were only an estimated reference weight for similar caravans.

Misrepresentations of caravan weights can cause additional costs for consumers who may have to buy a more powerful towing vehicle and may pose a safety risk if they unknowingly exceed safe towing limits.

“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.” 

Notably, the ACCC’s actions were prompted by issues highlighted in their ‘New Caravan Retailing Report’, which shed light on consumer mistreatment and non-compliance with consumer law within the caravan industry. The report, released in July 2022, aimed to guide businesses in adhering to their obligations under the Australian Consumer law. 

Furthermore, the ACCC’s engagement with the Treasury advocated for amendments to the Australian Consumer Law to incorporate stringent measures against failures to provide remedies, manufacturers’ failure to indemnify suppliers, and retribution by manufacturers against suppliers seeking indemnification, as outlined in the Consultion Regulatory Impact Statement (CRIS) released in December 2021. 

To ensure compliance, the ACCC has continued its investigations and discussions with various stakeholders in the industry, underscoring the significance of addressing consumer concerns and promoting fair trade practices with the caravan market.