Jayco in court over off-road claims

THE ACCC has instituted proceedings in the Federal Court against Jayco Corporation Pty Ltd (Jayco), Australia’s largest caravan and recreational vehicle manufacturer, for making allegedly misleading representations when advertising certain models of its RVs in ‘off-road’ conditions.

The news follows an investigative report published by GoAuto in June 2023 in which the majority of caravan manufacturers and importers – including Jayco – advertising off-road-capable caravans were found not to warrant their own product for use away from unsealed roads.

The ACCC alleges that since January 2020, Jayco engaged in misleading or deceptive conduct and made false or misleading representations to consumers by representing that its Outback, All Terrain and CrossTrak RVs were designed for use off-road and/or on four-wheel drive (4WD) only tracks when, in fact, they are not.

“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,” said ACCC deputy chair Mick Keogh.

“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.”

The ACCC alleges Jayco’s advertising depicted the RVs in various off-road conditions, including on unsealed or rocky roads with significant rutting or undulations, sand or beaches, water crossings, 4WD only tracks or specified locations that are only accessible by 4WD only tracks.

In fact, the ACCC alleges the RVs were not designed for use off-road, on 4WD only tracks, or in the off-road conditions shown in its advertisements.

In particular, and as described in Jayco’s warranty, the RVs were not designed for use or towing on 4WD only tracks, terrain with hard impacts, heavy landings or rutted roads or tracks.

The ACCC also alleges that Jayco did not disclose, or adequately disclose, in its promotional materials that the relevant RVs were not designed for use off-road and/or on 4WD only tracks, and that the warranty for the relevant RVs would not cover such use.

Separately, the ACCC alleges Jayco made misrepresentations that its ‘All Terrain’ RVs were designed for use on all types of terrain, when in fact the All Terrain RV was not designed for use on terrain with hard impacts, heavy landings, rutted roads, tight undulating tracks or roads or 4WD only tracks, and therefore was not designed for use on all types of terrain.

The ACCC’s case concerns Jayco’s promotion of its RVs on its own website, social media profiles, brochures, and point of sale advertising, including at 4WD and trade shows.

Further, Jayco also used references to “4WD” or “off-road” in its advertisements, as well as statements such as “purpose-built off-road hybrid RV”; “built with off-road travel at the forefront”; “can tackle just about any terrain”; “designed specifically for off-road adventures”; “our toughest off-roader, purpose-built to tackle the tough Australian terrain”; “purposely made to take the road less travelled”; and “All Terrain”.

“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,” added Mr Keogh.

“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 ACCC is seeking declarations, penalties, injunctions, compliance and publication orders, and costs.