CIV responds to the ACCC report that’s set to shift industry perspective 

“We’re talking about improving communication … so there is no confusion at the point of sale” 

Following a recent survey, the Australian Competition and Consumer Commission (ACCC) released New caravan retailing outlining the RV manufacturer’s legal obligations to new buyers and dealerships who manage after-sales care in keeping with Australian Consumer Law.

2270 responders representing caravan dealerships and new buyers of caravans shared their after-sales experiences identifying customer service challenges within the industry that sells more than 40,000 units annually. It’s a sobering report but there are lessons here, says Rob Lucas, now Chief Executive of the National Caravan Industry Training College. 

Here’s how the association is educating the industry.

‘A wake-up call’

“The ACCC report that was published is a bit of a wake-up call for the industry–it’s a small sample but it is a wake-up call and we accept the challenge,” concedes Rob. 

Ahead of its release, CIV invited the ACCC to raise their findings with more than 140 CIV members earlier in the year and discuss it further once it was tabled in July.

Rob says that members are taking notice. 

“I think the attendance is a good indication of how seriously our members take the findings.”

This is great news, considering CIV members account for two-thirds of the Victorian caravan manufacturing industry.

What it found

Repair and delivery delays and misrepresentation of buyers’ consumer rights, warranty terms, and access to repairs were among the concerns that some caravanners raised with the authority. 

Some dealerships said they had to absorb costs to meet their legal consumer obligations. The ACCC also found no standardised definitions to describe a caravan’s capabilities. And observed there was limited recourse for dealerships. 

“The ACCC has identified some challenges across those areas [human to human connectivity]. The whole board [CIV] is committed to the improvement,” says Rob. 

Establishing processes

“There are plenty of manufacturers doing a brilliant job but we all can improve and we need to bring the customer on that journey,” says Rob.

CIV is now conducting seminars, compiling resources and producing communications to help members meet their obligations. 

“We’re talking about improving communication, the speed at which to handle warranties and establishing processes, so there is no confusion at the point of sale.” 

But CIV wants to go further and publish a set of standards so buyers know what to expect from a reputable business: “If we provide that information, then [you] the buyer can see it.”

Access to warranty repairs

“I think there is the tyranny of distance. As I often say, you don’t buy a caravan to go to Dandenong. Buyers travel long distances. There’s the issue of how to fix a caravan when you’re thousands of kilometres away.“

CIV recommends manufacturers strengthen relationships with each other, dealers and service providers to handle warranty repairs efficiently.

“We are getting the message out there that servicing is a part of how they do business. If there is an industry response, we can coordinate nationwide servicing.” 

What is off-road anyway?

Terminology is another issue. The ACCC notes that, unlike passenger vehicles, there are no standard definitions for terms like off-road to describe a caravan.

“This may lead to confusion or mismatched consumer expectations about where a caravan can travel and what is normal versus abnormal use,” the report explains.

Rob says the association can address this shortfall and define what off-road means: 

“The ACCC gives us a roadmap forward, in effect. Let’s get some commonality of language. There are differences of opinion–let’s harmonise it.”