Hey everyone,
There’s a major misconception that parking operators get sued because their rates are too high or because they charge app fees. Legally, there is nothing wrong with charging convenience or technology fees. The issue is never the fee itself—it’s how the fee is marketed and disclosed.
Look no further than the recent $1.35 million settlement between the Rhode Island Attorney General and UPP Global.
The state didn’t fine them for their pricing structure. They penalized them for a total failure in upfront transparency:
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Tacking on undisclosed 7% to 10% “service fees” not included in posted rates.
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Disguising those convenience charges as a “tax.”
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Failing to clearly disclose baseline rates before drivers entered the lot.
Clear Signage is Cheap Insurance
If UPP Global had clear, conspicuous signage at the entrance stating exactly what the baseline rate was plus the app fee, the state’s consumer protection lawsuit would have evaporated.
When a driver has to pull in, park, and scan a QR code just to discover hidden transaction fees, regulators define that as an “unfair and deceptive trade practice.”
The Operator Checklist
If your facility uses an app or digital kiosk that adds fees to the baseline price, check your lot footprint today:
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Disclose Early: Display baseline rates and non-optional fees before a driver pulls past the gate or camera.
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Be Honest: Never label a technology or processing fee as a “tax” or “regulatory charge” to make it go down easier.
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No Gotchas: Put a clear line on your primary rate board: “All digital payments subject to a $X processing fee.”
Transparency doesn’t scare away customers half as much as a lack of signage attracts class-action attorneys. How are you handling app fee disclosures on your physical lots?