The Australian Competition and Consumer Commission (ACCC) has commenced legal proceedings against Jayco Corporation Pty Ltd in the Federal Court. The action concerns allegations of misleading advertising related to Jayco’s recreational vehicles (RVs) being marketed as suitable for ‘off-road’ conditions.

Jayco, Australia’s largest RV manufacturer, is accused of engaging in misleading or deceptive conduct by promoting its Outback, All Terrain, and CrossTrak RV models as designed for off-road and 4WD-only tracks. The ACCC claims these representations are contrary to the actual design specifications and warranty coverage of the vehicles.

The ACCC alleges that Jayco’s advertisements depicted these RVs in off-road settings, including unsealed roads, rocky roads, sand, beaches, water crossings, and 4WD-only tracks. According to the ACCC, these environments are not suitable for the RVs in question. Furthermore, it is claimed that Jayco failed to adequately disclose in its promotional materials that the RVs were not designed for off-road use and that the warranty would not cover such use.

The ACCC also contends that Jayco misrepresented its ‘All Terrain’ RVs as suitable for all types of terrain, despite limitations on their use in certain conditions. Jayco’s promotional activities included its website, social media platforms, brochures, and point of sale advertising, including at 4WD and trade shows.

Examples of Jayco’s advertising include an Instagram post showing an Outback RV in Kinkuna National Park, which is accessible only by 4WD, and a Facebook post featuring a CrossTrak RV in off-road conditions. The advertisements used phrases such as ‘purpose-built off-road hybrid RV’, ‘built with off-road travel at the forefront’, and ‘designed specifically for off-road adventures’.

ACCC Deputy Chair Mick Keogh stated, “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.” Keogh further added, “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.”

Keogh expressed concern that consumers were deprived of the ability to make informed purchasing decisions. “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,” he said.

The ACCC is seeking declarations, penalties, injunctions, compliance and publication orders, and costs from Jayco. The company sells its RVs through 29 dealerships across Australia, with models such as the Outback, CrossTrak, and All Terrain, priced between $19,000 and $113,000.

In May 2021, Jayco was fined $75,000 for misleading a consumer about their guarantee rights following a previous ACCC case. Keogh highlighted the financial implications for consumers, stating, “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’.”