Jayco in court over ‘misleading’ off-road claims


The competition watchdog has taken Jayco to court over allegations it misled consumers about the off-road capability of its caravans.
In a 53-page lawsuit lodged in the Federal Court, the Australian Competition and Consumer Commission (ACCC) accuses Jayco – Australia’s largest RV manufacturer – of deceptively and misleadingly making false off-road claims about three RVs in its range.
The ACCC alleges Jayco promoted the Outback, CrossTrak and All Terrain models as off-road RVs when they were not designed or covered by warranty for off-road conditions.
The watchdog further alleges that the All Terrain was not designed for ‘all terrain’ and that Jayco’s warranty “expressly excludes use of the RVs on 4WD only tracks and certain other terrain”.
Jayco has denied the allegations and says it will “vigorously defend” any claim of wrongdoing.
The lawsuit contains 43 pages of Jayco advertising material and social media posts allegedly showing RVs being towed through water crossings and on rutted, rocky and undulating tracks and sand beaches. The material also contains promotional statements with comments such as “our toughest off-roader, purpose-built to tackle the tough Australian terrain”; and “designed specifically for off-road adventures”.
The ACCC alleges the off-road depictions are at odds with Jayco’s design capabilities and warranty terms and conditions. The three Jayco RVs, priced from $19,000 to $113,000, were designed for “limited off-road use” on gravel or graded unsealed roads with “minor undulations”, the ACCC alleges. They were “not designed for use or towing on 4WD only tracks, or terrain with hard impacts, heavy landings, rutted roads or tracks”.
The watchdog alleges Jayco’s warranty documents exclude damage resulting from water crossings or from dislodgement of fittings caused by driving on off-road tracks. The ACCC further alleges that Jayco failed to disclose in its promotional material that the RVs were not designed or covered under warranty for the off-road use depicted.
“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 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.”
A Jayco spokesperson said in a statement that the manufacturer categorically denied misleading consumers, adding Jayco had cooperated with the ACCC in providing documents over 20 months.
“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 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 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.”
In May 2021 Jayco was fined $75,000 failing to offer a replacement or refund for a defective caravan, rather than a repair, as per consumer law.