Class action filed against Canadian parking app over alleged undisclosed fees
A Canadian company that helps drivers find parking spots is now facing a class action lawsuit for allegedly failing to disclose its service fees. Honk provides a parking service through its app.
In addition to helping drivers find parking spots, Honk helps owners rent out their parking lots. Drivers can pay for their parking using their phones.
A description of the HonkMobile app states, “Whether you’re looking for city, off-street, hospital, school, or airport parking, Honk has you covered!”
Honk is available in several cities across Canada including Corner Brook, Halifax, Montreal, Ottawa, Toronto, Mississauga, Oakville, Whitby, Oshawa, London, Niagara Falls, St. Catharines, Waterloo, Windsor, Thunder Bay, Winnipeg, Saskatoon, Calgary, Edmonton, Fort McMurray, Lethbridge, Burnaby, Kelowna, Surrey, Okanagan, Vancouver, Nanaimo, and Victoria.
Slater Vecchio LLP, a BC and Québec-based law firm focusing on class-action lawsuits, filed the lawsuit against Toronto-based Honk per an August 19 notice of civil claim in the Supreme Court of British Columbia.
The lawsuit had been brewing since July but was not filed until August 19. Meanwhile, the law firm investigated allegations that Honk engages in “price dripping” and “double ticketing” online, violating Canada’s Competition Act.
“It is alleged that Honk’s failure to disclose a service fee at the outset of the reservation process constitutes false and misleading advertising,” a statement reads.
“Price dripping” or “double ticketing” may occur when the advertised price doesn’t equal the price at checkout “because the company adds non-government-imposed fees on top of the originally represented price.”
Slater Vecchio LLP says the fees are typically called a “service fee,” “process fee,” or an “improvement fee.”
In this case, the plaintiff is a BC resident named Tyson Larence, who bought a parking reservation through HONKMobile several times and was charged a service fee that was not disclosed until the end of the purchasing process.
Slater Vecchio LLP
The parking reservation checkout page charges a service fee “to enable online transactions.”
An example noted in the court documents is as follows:
Slater Vecchio LLP
“In this example, instead of only charging the represented First Price of $2.25 to purchase a Parking Reservation through the platform at 898 Seymour Street in Vancouver, British Columbia, for 30 minutes or less, Honk also charges a service fee of $0.70 for a total of $2.95 (the ‘Second Price’),” states the civil claim notice.
It adds that Honk also represents that “All applicable taxes are included” in the First Prices.
Slater Vecchio LLP
Larence filed the action on his own behalf and on behalf of anyone else in Canada who experienced the same with HONKMobile.
The plaintiff wants the class action to be certified and seeks relief and damages for those affected by the undisclosed fees.
Fill out this form on the law firm’s website to determine whether you are part of the class or to keep up with the court proceedings.