The consumer watchdog has launched Federal Court action against Australia's largest caravan manufacturer, Jayco Corporation, over faulty caravans.

Key points: ACCC has taken action on behalf of four customers

ACCC has taken action on behalf of four customers Watchdog alleges Jayco breached consumer laws between 2013-15 when it knew the caravans were faulty

Watchdog alleges Jayco breached consumer laws between 2013-15 when it knew the caravans were faulty ACCC says despite requests for refunds or replacements, the company told buyers they could only get repairs

The Australian Competition and Consumer Commission (ACCC) alleges the company tried to prevent customers from getting refunds after they were sold defective caravans, costing tens of thousands of dollars.

It is alleged that between 2013 and 2015, Jayco breached consumer laws when it knew the caravans were faulty, even after repeated and failed attempts to repair them.

The ACCC said it had received numerous complaints about the company's behaviour but had taken action on behalf of four customers.

"The numerous defects in the Jayco caravans sold to these four consumers became apparent at the time of purchase or very soon after, and included issues such as misalignment in the roof, which did not close properly and leaked," ACCC chairman Rod Sims said.

Mr Sims said despite repeated requests for refunds or replacements, the company failed to comply with the law by telling buyers they could only get repairs.

"This understandably caused a lot of distress for the customers," he said.

Jayco is a family-owned Victorian business and has been operating since 1975.

Its website states the company has built over 180,000 RVs to date.

Industry needs to be put on notice: ACCC

The ACCC said the legal case illustrated a more systemic problem with the industry.

While action is only being taken against Jayco, the watchdog said it had received more than 1,000 complaints about caravans.

"This is an industry that does need to be put on notice," Mr Sims said.

"Our aim is to change behaviour and say to the industry, you should not be behaving like this."

Mr Sims said caravans were not quick, easy purchases and it could be very distressing to get the run-around from a company.

"People put great weight on these purchases and they aren't purchases that are made often," he said.

"People are entitled to expect that the caravan they purchase will be of acceptable quality."

The ACCC is seeking financial penalties, consumer redress orders, and costs.

A spokesperson for Jayco said it had no comment at this stage.

The Jayco models in the ACCC's sights are the Swan Outback camper trailer, the Expanda pop-top caravan, the Expanda Outback pop-top caravan, and the Journey Outback pop-top caravan.