There are almost 700,000 caravans on Australian roads. Photo: Shuttershock
Australians should be wary about purchasing caravans from dodgy retailers after the consumer watchdog put the industry on notice over misleading advertisements and pricing.
The Australian Competition and Consumer Commission (ACCC) says some caravan retailers are making misleading statements about prices and vehicle weights, with a new report into the industry exposing serious failures that the watchdog fears may open the doors to financial harm.
Businesses must ensure customers aren’t misled under Australian Consumer Law, ACCC commissioner Liza Carver said.
“Businesses must not mislead consumers about prices or contractual terms relating to pricing,” Carver said.
“Businesses must also ensure they do not mislead consumers about important features of a product, such as the weight, or tonnage, of a caravan.”
There has been a 26 per cent increase in registered vehicles over the past five years to 2021, with almost 700,000 now on Australian roads, the ACCC’s report into the caravan industry stated.
And with caravans costing tens of thousands of dollars, the ACCC is concerned that misleading behaviour from sellers could cause consumers significant harm.
“Caravans are one of the most expensive goods consumers can buy. When things go wrong the consumer harm can be high,” the ACCC stated.
“For this reason, consumers need to have confidence that they will be able to obtain remedies if their caravans do not meet one or more of the statutory consumer guarantees.”
Consumers are facing a number of problems, including delays in getting their caravan after purchase, and when trying to get vehicles repaired.
One caravan seller told customers the price of their caravan order was fixed, before they later tried to increase the price or cancel the deal, according to a recent report to the ACCC.
“The fixed-price representation had also been made despite the contract allowing the retailer to pass on manufacturers’ price increases,” the ACCC said.
Another major issue is that new caravan suppliers are not giving accurate information about the vehicles and how much they’ll cost, with the ACCC stating commonly alleged misrepresentations include performance, tow-weight limits and likely repair availability.
Even warranties are an issue, with a survey indicating that four in five purchasers of a new caravan have “experienced failures” that could entitle them to remedies, the regulator said.
“The ACCC is concerned about reports that many suppliers are denying consumers their statutory rights because the warranty has expired,” the ACCC said.
“Suppliers must not suggest to consumers that their consumer guarantees are limited to any warranty period or by any warranty terms and conditions.”
The ACCC said legislative reforms are needed to strengthen consumer laws.
For example, if a caravan retailer fails to provide a consumer with a remedy if their vehicle is faulty they are currently not liable for civil penalties.
The ACCC said there should be a prohibition with financial penalties or “other enforcement mechanisms” against suppliers that fail to provide remedies for consumer guarantee failures.
“We consider that these reforms will assist in addressing the issues we have identified in this market, as well as similar issues that occur in other markets for consumer goods and services,” the ACCC stated.