Large fine for misleading consumers

Public news

The Federal Court has ordered caravan manufacturer Jayco Corporation Pty Ltd to pay a penalty of $75,000 for making a false or misleading representation to a consumer about their consumer guarantee rights, following court proceedings by the ACCC.

The Court found that Jayco had misled one consumer by representing that they were only entitled to have their caravan repaired, when in fact a consumer’s rights under the Australian Consumer Law when there is a major failure also include a refund or replacement.

The Court found that the caravans purchased by four consumers, who formed the basis of the ACCC’s case, were not of acceptable quality, and that defects in three of the caravans were major.

When finding there was a major failure, the Court had regard to the cumulative effect of the defects, which included water leaks when it rained and multiple roof collapses.

If you need any advice in regards to consumer guarantee rights and your business, contact the MTA’s WR team by clicking here.