Yes, SpotHero added significant service fees that weren’t disclosed until the final checkout step, making the actual parking cost substantially higher than the advertised price. In one specific example from the lawsuit, a parking spot advertised at $15 in December 2024 cost $16.09 by the time a $1.09 service fee was added at checkout—a 7.3% markup that customers couldn’t see until they were deep in the booking process. This practice, known as “drip pricing,” is now the subject of a class action lawsuit filed in federal court.
The lawsuit was filed on April 4, 2025, by Edward Galvez of San Pedro, California, through attorneys Christin Cho and Simon Franzini of Dovel & Luner LLP in Santa Monica. The case is pending in U.S. District Court for the Central District of California and alleges that SpotHero violated California consumer protection laws by hiding mandatory service fees from the advertised price. As of March 2026, the case remains active with no settlement reached.
Table of Contents
- How Did SpotHero’s Hidden Fee Strategy Work?
- What Are the Legal Claims Against SpotHero?
- Who Is Included in the Class Action?
- What Changed After the Lawsuit Started?
- How Does This Compare to Other Parking Services?
- What Is the Current Status of the Lawsuit?
- What This Means for Consumers and the Parking App Industry
- Frequently Asked Questions
How Did SpotHero’s Hidden Fee Strategy Work?
SpotHero’s pricing model presented a fundamental problem: when users searched for parking spots, they saw a base price displayed prominently in search results and on listing pages. However, the company did not add its service fee to that displayed price. Instead, the fee only appeared late in the checkout process—after users had already selected a spot, entered their payment information, and were about to complete the transaction. By that point, many users had already committed mentally to the purchase and were less likely to abandon the booking to search for alternatives elsewhere. The complaint provides a clear example of how this worked in practice. A parking spot was advertised at $15, making it appear to be an affordable option.
When the customer proceeded to checkout, SpotHero added a $1.09 service fee, bringing the total to $16.09. This represents a 7.3% markup that users could not have factored into their price comparison when evaluating different parking options. For a parking spot that might have been cheaper than a competitor by $2, the hidden fee could have reversed that advantage—but users would never have known because they only saw the base price when comparing options. The timing of the fee disclosure is crucial to the lawsuit’s claims. Consumer protection laws often require that prices be clear and conspicuous before a purchase decision can be made. By hiding the fee until checkout, SpotHero allegedly prevented customers from doing meaningful price comparison shopping—a key protection that consumer laws try to ensure.
What Are the Legal Claims Against SpotHero?
The lawsuit asserts three main legal theories. First, it alleges violations of California’s Consumer Legal Remedies Act (CLRA), which prohibits deceptive and unfair business practices. The CLRA specifically targets practices that hide material terms or conditions of a transaction from consumers. Second, the complaint alleges violations of California’s Unfair Competition Law (UCL), which has broader reach than the CLRA and covers any unfair, unlawful, or fraudulent business practice. Third, the lawsuit includes a quasi-contract claim, alleging that SpotHero was unjustly enriched by collecting service fees under circumstances where customers would not have agreed to the full price had it been disclosed upfront.
California has enhanced protections under the CLRA that became effective on July 1, 2024. This timing is significant because the lawsuit includes a subclass specifically for transactions that occurred after July 1, 2024, when these stricter disclosure requirements took effect. This means the legal argument against SpotHero may be even stronger for customers who booked after that date—the company would have been on notice of the enhanced law and potentially liable for even greater damages if it continued the practice. However, SpotHero changed its pricing display practices around April 1, 2025, after receiving a notice letter from the plaintiff’s attorneys. The company now displays the full price including service fees upfront, which suggests it recognized the legal vulnerability of its previous approach. This change doesn’t eliminate the lawsuit—it only affects going-forward practices and may factor into settlement negotiations or damages calculations, but customers harmed during the prior period still have claims.
Who Is Included in the Class Action?
The lawsuit defines the class broadly as any California resident who purchased a parking spot through SpotHero and paid a hidden service fee. This potentially includes millions of users, as SpotHero operates across California and the company has been in business for many years. Everyone who booked parking during the period when fees were not disclosed upfront would be part of this class unless they opt out. A subclass has been created for California residents whose transactions occurred on or after July 1, 2024.
This subclass distinction matters because, as mentioned above, it aligns with California’s enhanced CLRA provisions. Customers in this subclass may have stronger legal claims and potentially higher damages, since the company would have been aware of the stricter requirements by that date. If you booked a parking spot through SpotHero during any period, you should consider yourself potentially affected, though the subclass customers may have more favorable legal standing. The exact size of the class is not yet known, as the lawsuit has not reached the certification stage where a court would formally approve the class definition. However, the breadth of the language—anyone in California who paid a service fee—suggests this could become a substantial class action with hundreds of thousands or potentially millions of members if certified and if a settlement is reached.
What Changed After the Lawsuit Started?
SpotHero changed its pricing practices approximately one month after the plaintiff’s attorneys sent a notice letter to the company. Starting around April 1, 2025, SpotHero began displaying the full price—including the service fee—upfront in search results and listing pages. This means current users of the app see the true cost before selecting a parking spot, preventing the hidden fee problem that the lawsuit describes. This change is significant but comes with an important caveat: it does not resolve the claims of customers who were harmed during the prior period. The lawsuit seeks compensation for users who paid hidden fees before the company changed its practices.
Even though SpotHero now discloses fees upfront, the company remains potentially liable for all transactions where it did not, and any settlement would need to account for the damages suffered by the class members during that prior period. Additionally, SpotHero’s quick change to its pricing practices may influence settlement negotiations or jury perception if the case goes to trial. The company’s apparent acknowledgment that its previous practice was problematic—evidenced by the swift change—could be viewed as an admission that the prior disclosure method was inadequate. On the other hand, SpotHero might argue that the change demonstrates its commitment to compliance and should result in lower damages. These dynamics will likely play out as the case progresses.
How Does This Compare to Other Parking Services?
SpotHero is not the only parking app or service that has faced scrutiny over pricing practices, but the drip pricing model is a particular area of regulatory focus. Other ride-sharing apps, hotel booking platforms, and ticket resellers have faced similar lawsuits over hidden fees that appear late in the checkout process. California’s aggressive consumer protection laws make it a particularly active jurisdiction for these types of cases. Most traditional parking operations—garage owners, parking lot operators, street parking systems—clearly display all fees at the entry or payment point.
Digital platforms like SpotHero, Parkwhiz, and others have more flexibility in how they present pricing information, and some may use multi-step checkout processes that don’t fully disclose the final price upfront. The SpotHero lawsuit highlights a risk that these digital parking platforms face if they follow a drip pricing model similar to SpotHero’s previous approach. However, not all parking apps or digital platforms follow SpotHero’s old model. The lawsuit may actually push the entire industry toward clearer upfront pricing, since regulatory scrutiny and litigation risks now make the drip pricing approach riskier. If SpotHero’s competitors have not already changed their pricing display, they may do so proactively to avoid similar litigation.
What Is the Current Status of the Lawsuit?
As of March 2026, the lawsuit remains active. No settlement has been reached, and the case has not yet been resolved by a court. At this stage, the litigation is likely in the discovery phase, where both sides exchange evidence and documents.
The court has not yet ruled on whether the class will be certified—a critical step that would formally establish the group of people eligible to participate in any eventual settlement or judgment. The timeline for class action litigation typically spans several years from filing to final resolution. The case could proceed toward trial, settle before trial, or settle after a trial or partial judgment. Given that SpotHero changed its practices, there may be incentive for both sides to reach a settlement rather than proceed to a full trial, but no public announcements of settlement discussions have been made as of this date.
What This Means for Consumers and the Parking App Industry
The SpotHero lawsuit is part of a broader regulatory and legal trend targeting hidden fees and drip pricing. Federal regulators, including the Federal Trade Commission, have increasingly scrutinized these practices, and the Biden administration issued guidance in 2023 directing agencies to crack down on junk fees. California’s CLRA, with its enhanced provisions after July 1, 2024, signals that the state is committed to consumer protection in this area. For consumers, the immediate lesson is to be cautious when using any digital platform that shows prices in a multi-step checkout process.
Take the time to verify the final price including all fees before confirming a purchase. For the parking app industry, the SpotHero lawsuit and similar cases suggest that clear, upfront pricing—showing the full cost in search results and listings—is both a legal requirement and increasingly the market expectation. Companies that continue using opaque pricing models face meaningful litigation risk and regulatory exposure. As cases like this progress, they may reshape how digital parking platforms compete, with transparency and honest pricing becoming key differentiators.
Frequently Asked Questions
When did SpotHero start hiding service fees?
The lawsuit does not specify an exact start date, but examples in the complaint reference December 2024, indicating the practice was ongoing at least through early 2025 when SpotHero received the notice letter from plaintiff’s attorneys.
How much could I receive if I was part of this class?
The amount any individual class member receives depends on the total settlement amount and the number of valid claims submitted. This cannot be determined until the lawsuit settles or reaches a judgment. The company’s net profits and the number of harmed customers will factor into damages calculations.
How do I join the class or file a claim?
As of March 2026, no settlement has been approved yet, so there is no claims process active. Once a settlement is reached and approved by the court, notice will be sent to class members with instructions on how to file a claim. Information will be available on court dockets and through plaintiff’s counsel.
What if I no longer have records of my SpotHero bookings?
If you created a SpotHero account, your booking history should be available in your account. If you no longer have access to your account, you should contact SpotHero directly or consult with an attorney about the claim process once it becomes available.
Does this lawsuit affect current SpotHero users?
Current SpotHero users see the full price including fees upfront as of April 2025, so the hidden fee issue does not apply to new bookings. The lawsuit addresses fees that customers paid during the prior period when fees were not disclosed upfront.
Can I join this class action if I am not a California resident?
No, the class is limited to California residents. If you live outside California and had a similar experience with SpotHero, you may not be eligible for this class, though other legal remedies may exist depending on your state’s consumer protection laws.