Jayco, Australia’s largest manufacturer of caravans and RVs, is facing legal action after the Australian Competition and Consumer Commission (ACCC) launched proceedings in the Federal Court over allegedly misleading advertising around its “off-road” models.

At the heart of the case are Jayco’s Outback, All Terrain, and CrossTrak RVs, marketed to 4×4 and touring enthusiasts as built for rugged terrain, including 4WD-only tracks, beaches, and rocky, rutted outback roads. However, according to the ACCC, that’s not what buyers actually got.

The watchdog alleges that despite being promoted with imagery showing the RVs tackling unsealed tracks, water crossings and remote bush locations, the vehicles weren’t designed for such conditions – and crucially, weren’t covered under warranty if they were used that way.

“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.

“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 claims that Jayco’s own warranty documents state that the vehicles aren’t suitable for terrain with hard impacts, heavy landings or serious undulations. That includes the very conditions commonly encountered on 4WD adventures.

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Instagram post depicting an Outback RV being towed by a 4WD vehicle through “Kinkuna National Park”, which is only accessible by 4WD vehicles – ACCC

Of particular concern is the All Terrain model, which, despite its name, allegedly isn’t built for “all terrain” at all. The ACCC saying, “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 also alleges Jayco failed to properly disclose these limitations in its advertising, both online and at popular events like 4WD shows, potentially misleading consumers who believed they were buying a caravan up to the task.

“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,” Mr Keogh said.

“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’.”

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Jayco Facebook post and embedded video, depicting a CrossTrak RV being towed behind a 4WD vehicle through a range of off-road conditions including water crossings – ACCC

In response, Jayco has denied that any of its advertising or promotional materials misrepresented or misled consumers.

“After nearly 20 months of engagement with the Australian Competition and Consumer Commission (ACCC), and despite the ACCC seeking and being provided with detailed submissions and documentation from Jayco Corporation Pty Ltd (Jayco), the ACCC has decided to commence proceedings in the Federal Court of Australia alleging contraventions of the Australian Consumer Law,” a Jayco spokesperson said in a statement.

“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.

“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.

“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 will continue to stand behind its products, its Warranty, its people and its customers as it defends the claims through the legal process.”

This isn’t Jayco’s first brush with the ACCC. In 2021, it was fined $75,000 for misleading a customer about their consumer guarantee rights.

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