The Australian Competition and Consumer Commission (ACCC) has initiated proceedings in the Federal Court against Jayco Corporation Pty Ltd, the largest manufacturer of caravans and recreational vehicles in Australia. The ACCC claims that since January 2020, Jayco has engaged in misleading conduct by advertising certain models of its RVs as suitable for off-road use, despite evidence suggesting otherwise.

According to the ACCC, Jayco misled consumers by showcasing its Outback, All Terrain, and CrossTrak RVs in off-road conditions, including rugged terrains and 4WD-only tracks, which the vehicles were not designed to handle. The Deputy Chair of the ACCC, Mick Keogh, emphasized that consumers expect advertisements to accurately reflect the intended use of products, and Jayco's representations failed to meet this standard.

The ACCC's allegations include that Jayco did not adequately disclose that the RVs were not suitable for off-road use and that their warranties would not cover such conditions. Furthermore, the ACCC points out that Jayco's 'All Terrain' RVs were falsely advertised as being capable of handling all types of terrain, which was not the case.

The misleading advertisements were disseminated through various channels, including Jayco's website, social media, brochures, and trade shows. The ACCC is concerned that consumers may have made uninformed purchasing decisions, potentially leading them to pay more for RVs that did not meet their needs.

In response to these allegations, the ACCC is seeking legal remedies, including declarations, penalties, injunctions, compliance orders, and costs. This case follows a history of legal scrutiny for Jayco, which was previously penalized for misleading representations regarding consumer guarantee rights.