Sydney: Jayco, one of Australia’s largest caravan manufacturers, is facing serious legal action after the Australian Competition and Consumer Commission (ACCC) filed a case in the Federal Court, accusing the company of misleading and deceptive conduct and breaching multiple provisions of Australian Consumer Law.
The ACCC alleges that between 2017 and 2019, Jayco sold several caravan models with significant manufacturing defects — including water leaks, faulty brakes, and structural weaknesses — yet failed to provide appropriate remedies when customers complained. In many instances, customers who raised concerns about ongoing issues were either denied refunds or provided inadequate repairs that did not resolve the underlying problems.
Allegations of Ignoring Consumer Rights
According to the ACCC, Jayco repeatedly told customers they were only entitled to limited repairs under warranty — a claim the commission argues is false under the law. Under the Australian Consumer Law, all products must be of “acceptable quality,” and if a product has a major fault, customers are entitled to a refund, replacement, or proper repair.
“Consumers have a legal right to remedies when products are not fit for purpose. This case is about ensuring companies like Jayco don’t attempt to sidestep those responsibilities,” said ACCC Chair Gina Cass-Gottlieb.
In one instance cited by the ACCC, a customer was sold a caravan that suffered severe water ingress during the first few uses, causing mold and interior damage. Despite multiple complaints, the customer was offered only patchwork repairs and was denied a full replacement or refund.
Jayco Responds
Jayco has publicly denied the allegations, saying it has always aimed to meet high-quality standards and resolve customer complaints in good faith. In a statement released Tuesday, the company said:
“Jayco takes the satisfaction and safety of its customers seriously and believes it has acted lawfully at all times. We will vigorously defend ourselves against the claims made by the ACCC.”
Broader Industry Implications
The case could have far-reaching consequences for the booming caravan and recreational vehicle (RV) industry, which has seen unprecedented growth during the COVID-19 pandemic and beyond, as Australians turned to domestic travel. Industry experts say the outcome of the case could reshape after-sales service and warranty practices across the sector.
Legal analysts also note that this lawsuit may serve as a warning to other large manufacturers who attempt to limit consumer rights through narrowly defined warranties or internal policies that conflict with federal law.
The Federal Court proceedings are ongoing, and a decision is not expected until later this year. If found guilty, Jayco could face fines in the millions and may be compelled to compensate affected consumers.
