ACCC warns of stronger scrutiny on caravan industry compliance
3 mins reading time
As outlined in our article last year, the Australian Competition and Consumer Commission (ACCC) has issued a warning to caravan manufacturers and retailers against the use of deceptive advertising practices in breach of the Australian Consumer Law (ACL).
The ACCC is actively pursuing:
- Retailers who enter into a fixed price contract at the time of sale, only to later attempt to notify of a price increase;
- Retailers falsely representing in their contracts that they are able to legally pass on manufacturer price increases;
- Cases where caravan weights are inaccurately represented;
- Instances where non-compliant disclosure documents are provided to customers; and
- ACL breaches by small and mid-sized caravan retailers more generally.
High value consumer goods are a priority focus for the ACCC in 2024, and it is actively investigating the caravan industry, which could lead to significant legal action against manufacturers and retailers.
- The ACCC has already enforced two infringement notices (including penalties of $33,000) against Crusader Caravans, for allegedly false or misleading representations about the waterproofing tests conducted on its caravans.
- Another retailer has already committed to updating its website content and enhancing its procedures to provide customers with more accurate weight information before purchasing a caravan, along with clear options in cases where actual caravan weights differ from initial estimates.
The UCT regime
The bolstered Unfair Contract Terms (UCT) regime, which came into effect on 10 November 2023, continues to have a significant impact on businesses. It is crucial to examine your standard form contractual terms related to price adjustments, disclosure of caravan information, and the rights of parties, etc, as these terms may now fall under the scope of the UCT. For further information, see our article.
Important reminder
In light of the ACCC’s active industry focus and its enforcement of the UCT regime, you should:
- Review and update your standard form contracts to ensure your business is compliant.
- Review and seek advice on your marketing materials to ensure they do not mislead or make misrepresentations to consumers under the ACL.
- Review and update your consumer disclosure documents.
Need more information or assistance?
For further assistance, please contact one of our experts.
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ACCC warns of stronger scrutiny on caravan industry compliance
As outlined in our article last year, the Australian Competition and Consumer Commission (ACCC) has issued a warning to caravan manufacturers and retailers against the use of deceptive advertising practices in breach of the Australian Consumer Law (ACL).
The ACCC is actively pursuing:
- Retailers who enter into a fixed price contract at the time of sale, only to later attempt to notify of a price increase;
- Retailers falsely representing in their contracts that they are able to legally pass on manufacturer price increases;
- Cases where caravan weights are inaccurately represented;
- Instances where non-compliant disclosure documents are provided to customers; and
- ACL breaches by small and mid-sized caravan retailers more generally.
High value consumer goods are a priority focus for the ACCC in 2024, and it is actively investigating the caravan industry, which could lead to significant legal action against manufacturers and retailers.
- The ACCC has already enforced two infringement notices (including penalties of $33,000) against Crusader Caravans, for allegedly false or misleading representations about the waterproofing tests conducted on its caravans.
- Another retailer has already committed to updating its website content and enhancing its procedures to provide customers with more accurate weight information before purchasing a caravan, along with clear options in cases where actual caravan weights differ from initial estimates.
The UCT regime
The bolstered Unfair Contract Terms (UCT) regime, which came into effect on 10 November 2023, continues to have a significant impact on businesses. It is crucial to examine your standard form contractual terms related to price adjustments, disclosure of caravan information, and the rights of parties, etc, as these terms may now fall under the scope of the UCT. For further information, see our article.
Important reminder
In light of the ACCC’s active industry focus and its enforcement of the UCT regime, you should:
- Review and update your standard form contracts to ensure your business is compliant.
- Review and seek advice on your marketing materials to ensure they do not mislead or make misrepresentations to consumers under the ACL.
- Review and update your consumer disclosure documents.
Need more information or assistance?
For further assistance, please contact one of our experts.