Grey nomads taken for a ride by caravan industry
Caravanning is the dream for many seniors – so why has it become a nightmare.
Key points
ACCC has received a record number of consumer complaints about purchasing a caravan.
ACCC has released a new report containing guidance for consumers and the industry.
Retailers claim manufacturers are to blame for many problems.
You pay for the caravan or mobile home, and then it all goes wrong.
Consumer regulator, Australian Competition and Consumer Commission (ACCC), says you are not alone. In an ACCC survey of 2,270 caravan owners, 80 per cent reported experiencing problems with their new caravan.
The number of complaints to the ACCC about the caravan industry continues to rise, reaching more than 1,300 reports in the past five years.
Consumers reported widespread consumer guarantee failures, misrepresentations by caravan suppliers, and unexpected delays in the delivery and repair of caravans.
The ACCC report highlights key issues of concern in the market for new caravans and provides guidance to businesses about their obligations to comply with Australian Consumer law.
“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 Chair Delia Rickard said.
That’s what happened to Denise Tiyse when she spent $75,000 of her inheritance on a new caravan. She told the ABC the caravan was plagued with issues from the outset — from the vehicle itself to dismissive suppliers not wanting to fix its problems.
Sunshine Coast resident Patricia Jackson said she and her husband Ian sold their house and purchased a caravan earlier this year.
They planned to live in the van while they built their new home. But they still have not received the caravan.
Ian became so upset he had a heart attack and passed away in April.
"The stress was just too much for him — we had just sold the house and were going to move into the caravan. "Now I have nowhere to live,” Ms Jackson said.
The ACCC says that under Australian Consumer Law if your caravan fails to meet one or more consumer guarantees, for example, it is not of acceptable quality or does not match a description made by a supplier, you are entitled to a remedy from the supplier. A remedy can be a repair, replacement or a refund.
If a consumer guarantee failure is minor, the supplier can choose to offer a repair. If the supplier refuses to offer you a repair for the minor failure, you are entitled to a refund or a replacement.
If a failure is major, you are entitled to your choice of a replacement or a refund. It is also important to note that multiple minor failures can be considered a major failure, which allows for the choice of a refund or replacement.
Responding to the ACCC survey, 40 per cent of caravan suppliers reported that a manufacturer had refused to reimburse them for providing a remedy to a consumer.
“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,” ACCC Deputy Chair Delia 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.”
The ACCC is also concerned that many consumers believe suppliers have misled them during the sales process or when problems with their caravan arose. The most frequently reported misleading claims were about consumer guarantee rights and their interaction with warranties.
“If your caravan has a major or minor consumer guarantee failure, you may be entitled to a remedy even if the warranty provided by the business has expired,” Ms Rickard said.
Consumers also reported they believed suppliers made misrepresentations about caravan performance capabilities and tow-weight.
“Reports of misleading representations about caravan tow-weight and other important performance capabilities are particularly worrying given the grave safety implications for consumers,” Ms Rickard said.
“The ACCC will investigate and take enforcement action against suppliers and manufacturers we believe may have misled consumers.”
The report also found that many consumers experienced delays in the delivery of their new caravan or for repairs to their existing caravan, some of which relate to COVID-19 supply chain disruptions and recent increased demand.
The ACCC has released guidance buying a new caravan to help consumers and businesses understand their rights and obligations when buying and selling.
The Caravan Industry Association says it will comply with the ACCC recommendations.
In a statement on its website, the ACCC says retailers have been under enormous pressure due to unprecedented demand from Australians looking to experience the caravanning and camping lifestyle and issues due to COVID-19 labour shortages and supply chain delays, primarily out of China.
“While the vast majority of industry businesses understand and adhere to their consumer obligations and supplier indemnification responsibilities under the Australian Consumer Law, there always remain opportunities for individual improvement”, CEO Stuart Lamont said.
