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False claims lead to fines,
'Secure-a-Spot' not so sure,
Penalty defines.
Secure Parking slapped with $10.95m penalty for misleading 'Secure-a-Spot' claims
The Federal Court has ordered Secure Parking Pty Ltd to pay $10.95 million in penalties for making false or misleading claims about its 'Secure-a-Spot' online parking service, leading consumers to believe would have a parking space reserved for them at a specific time and date - which was not always the case.
The action was initiated by the Australian Competition and Consumer Commission (ACCC), with ACCC Commissioner Liza Carver asserting that the business did not provide customers with the service it advertised. "Customers may have been seriously inconvenienced when they arrived at their chosen car park to discover the parking space they thought they had booked was not available to them," she said.
Secure Parking admitted that between July 2017 and June 2022, it made false or misleading representations to consumers using the 'Secure-a-Spot' name. The company did not generally reserve car parking spaces for Secure-a-Spot customers, and admitted that sometimes car parks reached capacity, with some customers arrived at their Secure-a-Spot booking to find the space they had booked was not available to them.
Secure Parking promoted its services to consumers via its website, direct email marketing, and social media channels. More than ten million Secure-a-Spot bookings were made during the five-year period. In addition to the penalties, the Court also ordered Secure Parking to pay part of the ACCC's costs, publish corrective notices, and review its complaints handling systems.
"This penalty sends a strong message to all businesses that making misleading claims to consumers about the nature of the services provided can attract substantial penalties," Carver said.
Secure Parking operates more than 600 car park facilities in Sydney, Brisbane, Perth, Adelaide, Melbourne, and Hobart. It is owned by Japan-based car park operator, Park24 Co Ltd. In June 2022, Secure Parking rebranded the service to Secure Parking - Book Online.
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