PayByPhone class action alleges parking meter app charges before payment

PayByPhone class action lawsuit overview:

• Who: Plaintiff Justin Alicea filed a class action lawsuit against PayByPhone US Inc. and PayByPhone Technologies Inc.
• Why: Alicea alleges PayByPhone’s mobile app begins charging consumers for parking before they have confirmed and paid for the transaction.
• Where: The PayByPhone class action lawsuit was filed in California federal court.

A new class action lawsuit alleges that PayByPhone’s mobile parking meter app deceptively begins charging consumers for parking sessions while they are still on the payment selection screen. 

Plaintiff Justin Alicea filed the complaint Feb. 11, 2026, in a California federal court, alleging that the company’s business practices violate multiple state and federal consumer protection laws.

According to the complaint, PayByPhone’s digital interface departs from the long-standing “payment-first” model used by traditional parking meters, where a timer only begins counting after a transaction is processed. 

Instead, the PayByPhone class action claims the parking meter app initiates the parking session in the background as soon as a user selects a duration, even before they have selected a payment method or clicked the final “Pay” button.

The proposed class action lawsuit seeks to represent users who paid for parking via the app within the last four to six years in California, Florida, Massachusetts, Washington, New Hampshire and Pennsylvania. 

Class action: PayByPhone profits from deceptive practice

Alicea alleges that the parking meter app’s interface is designed to obscure this early start time by displaying a static duration. 

For example, if a user selects “15 minutes” of parking, the payment screen continues to show “Parking for 15 m” even if the user spends several minutes entering new credit card information or navigating the app. Consequently, once the payment is finally confirmed, the user may find they have significantly less than the 15 minutes they paid for.

The lawsuit asserts that PayByPhone has a direct economic incentive to “shortchange” users. In many cities, such as San Francisco, PayByPhone earns a flat service fee for every transaction processed — such as 35 cents per session. By causing parking sessions to expire earlier than expected, the company allegedly increases the likelihood that a user will either pay for a second “extension” transaction or vacate the spot for a new customer to start a new paid session.

Alicea, a regular user of the app in San Francisco, claims he was unaware his timer was running during the checkout process and was shortchanged by at least a minute on his reservations. 

He maintains that had the parking meter app provided a live countdown or clear disclosure, he would have initiated the payment process only when he was ready for the timer to start or used a physical meter instead.

The plaintiff alleges fraud by omission, unjust enrichment, and violations of various state consumer protection acts. Alicea is seeking class certification, restitution, damages and a jury trial.

Last year, CAVU eCommerce agreed to a $425,000 settlement to resolve claims it failed to disclose mandatory service charges for online bookings on airportparkingreservations.com and airportparking.com.

What do you think of the allegations made in this PayByPhone class action lawsuit? Let us know in the comments.

The plaintiff is represented by Yaman Salahi, Nicole Cabañez and Taylor Applegate of Salahi P.C.

The PayByPhone class action lawsuit is Alicea v. PayByPhone US Inc., et al., Case No. 3:26-cv-01266, in the U.S. District Court for the Northern District of California.

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