Jayco allegedly promoted the vehicles using images and language suggesting they were suitable for rough terrain.
The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Jayco Corporation Pty Ltd, focusing on the advertising tactics used to promote some of the company’s recreational vehicles (RVs).
The competition watchdog alleges Jayco misled consumers through its marketing by overstating the off-road capabilities of its Outback, All Terrain, and CrossTrak models.
Jayco, Australia’s largest RV manufacturer, is being accused of promoting these vehicles with claims and imagery that suggested they were suitable for rugged, off-road conditions.
The ACCC alleges these advertisements did not reflect the true capabilities of the vehicles, nor the limitations set out in Jayco’s own warranty.
“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,” said ACCC deputy chair, Mick Keogh.
“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 to reflect the intended use of the product.”
The ACCC alleges that since January 2020, Jayco has used a range of advertising platforms, including its website, social media, brochures, and trade show displays, to position the vehicles as purpose-built for off-road adventure.
Marketing slogans under scrutiny include:
- “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”
The ACCC alleges that these promotional claims painted a misleading picture, especially since Jayco’s warranty excludes coverage for damage from off-road use, the very conditions depicted in its advertising.
“This case is about ensuring advertising accurately reflects product performance,” said Keogh.
“Consumers rely heavily on marketing messages, especially when making major purchases like an RV, and they deserve to have a clear and honest understanding of what a product can and cannot do.”
The ACCC also alleges that terms like “All Terrain” created a false impression that the RVs were suitable for all types of terrain, despite limitations on use in rough, unsealed or 4WD-only environments.
Consumers, the ACCC noted, may have paid a premium for these models based on representations that they were off-road capable, a key selling point in Jayco’s branding.
The watchdog is seeking court orders for declarations, penalties, injunctions, compliance reforms, corrective advertising and legal costs.
This is not the first time Jayco has faced scrutiny over its advertising. In 2021, the company was fined $75,000 for making false or misleading claims about consumer guarantee rights.
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