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Introduction
Secure Parking, a major Australian parking operator, has been fined $10.95 million for misleading customers about the availability of guaranteed parking spots through its ‘Secure-a-Spot’ service.
Details of the Violation
Between July 2017 and June 2022, Secure Parking advertised that customers could pre-book a parking space, guaranteeing availability upon their arrival. However, the Federal Court found that the company did not actually reserve spaces, often leading to situations where carparks were full and no spots were available for those who had booked online. This practice affected over 10 million bookings made during the five-year period.
Legal Proceedings and Penalties
After proceedings initiated by the Australian Competition and Consumer Commission (ACCC), Secure Parking admitted to the misleading conduct. The Federal Court imposed a fine of $10.95 million and ordered the company to publish corrective notices and overhaul its complaints handling systems to prevent future occurrences.
Consumer Impact and Corporate Response
Many consumers were left inconvenienced and without the services they were promised, which not only affected their individual plans but also their trust in Secure Parking’s services. In response to the court’s decision, Secure Parking has committed to enhancing transparency and ensuring that such misleading practices are eliminated.