SpotHero class action lawsuit alleges parking spots come with deceptive hidden fees

SpotHero class action lawsuit overview:

• Who: Plaintiff Edward Galvez filed a class action lawsuit against SpotHero Inc.
• Why: The plaintiff claims SpotHero uses drip pricing to sell its parking reservations.
• Where: The SpotHero class action lawsuit was filed in California federal court.

A new class action lawsuit accuses SpotHero of using a deceptive practice known as “drip pricing” to sell its parking reservations.

Plaintiff Edward Galvez filed a class action lawsuit on April 4, claiming SpotHero advertises one price for its parking spots only to tack on mandatory “processing” fees at the end of the checkout process.

He claims SpotHero’s alleged use of drip pricing is illegal under California law, which prohibits businesses from making or disseminating any statement that is “untrue or misleading” in connection with the sale of goods or services.

“Drip pricing” is a practice in which companies advertise only part of a product’s total price to lure in consumers and do not mention other mandatory charges until late in the buying process, the lawsuit says.

SpotHero is a digital parking reservation service, connecting drivers seeking parking spaces with available spots in parking garages, lots, and valet services across North America.   

Galvez wants to represent a California class of consumers who purchased parking spots from SpotHero and paid hidden service fees.

SpotHero drip pricing impedes price comparison, class action argues

Galvez claims SpotHero’s alleged use of drip pricing interferes with consumers’ ability to price compare and manipulates them into paying fees that are either hidden entirely or not presented until late in the transaction.

“SpotHero’s practice of adding fees at the end frustrated comparison shopping, impeded competition, and led consumers to pay more for their parking spots than they otherwise would,” the SpotHero drip pricing class action says.

Galvez claims SpotHero is guilty of violating California’s Consumer Legal Remedies Act and Unfair Competition Law and of quasi-contract.

He demands a jury trial and requests declaratory and injunctive relief and an award of compensatory and punitive damages for himself and all class members.

Drip pricing is not uncommon — recently, a separate class action claimed Supreme Golf uses “drip pricing” to ambush customers with hidden fees when booking tee times at golf courses in New York.

Have you ever paid a hidden service fee when purchasing a parking reservation from SpotHero? Let us know in the comments.

The plaintiff is represented by Christin Cho and Simon Franzini of Dovel & Luner LLP.The SpotHero drip pricing class action lawsuit is Galvez, et al. v. SpotHero Inc., Case No. 2:25-cv-02974, in the U.S. District Court for the Central District of California.

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