ACCC takes action against Jayco over ‘Off-Road’ advertising claims

The ACCC has launched Federal Court proceedings against Jayco Corporation Pty Ltd, Australia’s leading manufacturer of caravans and recreational vehicles, alleging the company misled consumers over the off-road capabilities of several RV models.

According to the ACCC, since January 2020 Jayco has promoted its Outback, All Terrain, and CrossTrak models as suitable for off-road use and four-wheel drive (4WD) only tracks claims the regulator says do not reflect the vehicles’ actual design or warranty coverage.

“We believe Jayco misled consumers by showing these RVs operating in rugged, off-road settings they were not built for and not covered for under warranty,” said ACCC Deputy Chair Mick Keogh. “When brands promote products with specific claims or visual imagery, consumers have every right to expect that those claims are accurate.”

The ACCC’s case centres on advertising across Jayco’s website, social media channels, brochures and promotional displays, including at 4WD and trade shows. The promotional content included imagery of RVs in harsh environments such as rocky or unsealed roads, beaches, water crossings, and other remote tracks paired with claims like:

·      “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”

·       “All Terrain”

However, the ACCC alleges the RVs were not engineered for such conditions. Jayco’s own warranty documentation, the ACCC notes, explicitly excludes coverage for use on 4WD-only tracks, or in conditions involving hard impacts, rough terrain, or uneven surfaces.

The regulator also claims Jayco failed to adequately inform consumers that the vehicles were not designed for off-road use and that warranty coverage did not apply to such use.

In particular, the ACCC alleges that the name “All Terrain” and associated marketing falsely suggested the RVs were suitable for a wide range of surfaces, including terrain with ruts, sharp undulations, and other difficult conditions — when in fact, they were not.

“RVs represent a significant financial investment. Misleading advertising can result in consumers purchasing a product that doesn’t meet their needs — or paying a premium for features that don’t exist,” Mr Keogh said.

The ACCC is seeking a range of remedies from the Court, including declarations, financial penalties, injunctions, compliance and corrective advertising orders, and costs.