Secure Parking, the largest provider of paid parking in Australia, recently faced a penalty of nearly $11 million for misleading customers over a period of five years. The company falsely marketed its "Secure-a-Spot" service, claiming to reserve parking spots while actually operating based on forecasted vacancy levels. This led to a situation where individual spots were never reserved, and there were no limits on the number of non-booking customers entering the car parks.
The Federal Court case, instigated by the Australian Competition and Consumer Commission (ACCC), found that over the specified five-year period, Secure Parking's system was not as it had been advertised. Justice Nye Perram highlighted that the company's method relied on forecasts being accurate, leading to inconveniences and annoyance when spots were not honored. Despite Secure Parking admitting to making false representations, the court penalized them $10.9 million for breaching Australian Consumer Law through deceptive conduct.
In response to the court's ruling, Secure Parking has been instructed to display a notice on its website about the case, review its complaints handling procedure, and appoint a senior manager to focus on compliance with consumer law. While the company did not have malicious intent, Justice Perram acknowledged that they knowingly marketed a service with unreserved parking spaces. The ACCC Commissioner, Liza Carver, emphasized that the large penalty imposed on Secure Parking serves as a stern warning to businesses against misleading consumers about the services being provided.