Faulty caravan complaints rise as buyers report being unable to get help with repairs

New caravan owners are flocking in their droves to complain to a consumer watchdog after it was found 80 per cent had issues with their purchase, and many couldn’t get help when things went wrong.

Buyers have reported widespread consumer guarantee failures, being misled by suppliers, and experiencing unexpected delays in the delivery and repair of their caravans, according to the Australian Competition and Consumer Commission (ACCC).

A report carried out by the authority found of the 2270 caravan owners it spoke to, 80 per cent had problems with their new caravan – of which 50 per cent were major faults and 48 per cent had to wait more than two months for a fix.

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Eds note: All images contained in this article are generic and for illustration purposes only, none have been included in reference to a fault

The number of complaints is also on the rise – with more than 1300 people getting in touch over the last five years. Twenty-nine per cent of those the ACCC surveyed said a claim about their caravan at the point of sale was inaccurate, and 13 per cent had a dispute with the supplier over a fault.

“I told the manufacturer that under the consumer law I had certain rights that they were ignoring. They said, ‘so what’,” one buyer said.

Another added: “We paid for half of the costs involved in fixing it. Otherwise, we would have months of haggling and [still have] an unacceptable caravan.”

“A caravan can represent a significant financial and emotional investment. Some people save for years in anticipation of purchasing and travelling in a caravan. If something goes wrong the harm can be significant,” ACCC Deputy Chairwoman Delia Rickard said.

Under Australian Consumer Law, if your caravan fails to meet one or more consumer guarantees, for example it is not of acceptable quality or doesn’t match a description made by a supplier, then you are entitled to a remedy from the supplier – which can be a repair, replacement or refund.

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If a consumer guarantee failure is minor, the supplier can choose to offer you a repair. If they refuse, you are entitled to a refund or a replacement. If a failure is major however, you are entitled to your choice of a replacement or refund. Multiple minor faults also constitute a major problem.

“We are very concerned by these reported failures to comply with obligations under the Australian Consumer Law, and the impact that these failures have on consumers who have purchased a caravan which develops a fault,” Rickard added.

“Consumers need to be confident that when they make a significant financial purchase like a caravan, they will be able to get a refund, replacement or a repair if there is a failure.

“It is the ACCC’s view that it is reasonable to expect a new caravan won’t develop a major fault within the first several years of use.”

The most common issues reported by new caravan owners included being misled about their consumer rights and warranties, as well as being given inflated claims about their caravan’s performance and towing capabilities.

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“Reports of misleading representations about caravan’s tow-weight and other important performance capabilities are particularly worrying given the grave safety implications for consumers,” Rickard said.

“The ACCC will investigate and take enforcement action against suppliers and manufacturers we believe may have misled consumers.”

Under Australian Consumer Law, a retailer must provide the consumer with a remedy when there is a consumer guarantee failure. However, the blame doesn’t lie squarely with suppliers. The ACL also says the supplier is entitled to recover any costs associated with providing a fix from the manufacturer, which includes parts and labour associated with repairs.

But 40 per cent of caravan suppliers surveyed told the ACCC that a manufacturer had refused to reimburse them for providing a remedy to a consumer when such an issue arose, and often it was just too expensive or difficult to fight the battle in court.

“While a supplier can take legal action against a manufacturer to recover costs, the ACCC’s survey of suppliers found some were reluctant to take this step due to fear of retribution,” Rickard said.

“We are very concerned by reports that retailers are unable to obtain the reimbursement they are entitled to for providing remedies to consumers.”

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“This is a grey area with current legislation where there is no protection for the dealer on behalf of the customer to seek reimbursement or costs without going down a legal route (at significant cost),” one supplier said. “As dealers, we have little option other than to do the right thing by the customer and wear the cost as it often isn’t worth pursuing legally and not worth the damage to the relationship with the manufacturer. These small cases, accumulate into a larger overall amount over time.”

Another added: “Mostly the caravan manufacturers don’t want to recognise faults in manufacturing. Even to the point where their brand will be taken away from the retailer and given to another dealer.”

“Manufacturers [have] no accountability. The dealers are always fixing faulty issues without compensation. We have no way of defending ourselves at tribunal…the law is directed at us. There is no one to help the dealers against the manufacturers,” said a third.

As a result, the ACCC is advocating for the ACL to be amended to crack down on caravan sellers and manufacturers not following the rules, but also to offer better protection to those who are trying to do the right thing.

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The move follows legal proceedings in which, in November 2017, the ACCC took court action against caravan manufacturer Jayco Corporation Pty Ltd alleging that it had acted unconscionably towards four consumers by denying them the right to refunds or replacements for their defective caravans.

The ACCC also alleged that Jayco had made false or misleading representations to the four consumers about their rights to a refund or replacement.

The Federal Court found Jayco had only made a false or misleading representation to one of the consumers about their consumer guarantee rights under the Australian Consumer Law, and ordered it to pay a penalty of $75,000 to said owner.