Carpark scams

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We're used to free parking when we go to the supermarket, but now a different system's taking over where so-called 'free' parking at certain shopping centres and supermarkets carries a hefty penalty for thousands of shoppers.

So, are these 'fines' legal and should you pay?

Attendants that look like they're employed by local councils are actually employees of private carparking companies and they're placing thousands of notices on windscreens every day. The notices appear to be legitimate parking fines, but they're not.

Shoppers are dutifully paying the 'fines' and the companies and others in on the act, are raking in a fortune.

Customers are being duped by signs stating parking is free for 2 hours - many people think they don't need to get a ticket from the machine. And that's the catch - if you don't read and understand the conditions for parking and you don't display a ticket on your windscreen, you'll cop one an $88 notice.

Craig Kelly got hit with an $88 dollar fine after he'd parked for 10 minutes. He hadn't displayed a ticket on the windscreen, assuming it was free.

"This is simply a consumer scam, a scam against the public," said Kelly. "It's a complete and utter deception, people miss read the signs, they get confused."

Fair Trading's warned they're allegedly illegal ransoms to pay up - not worth the paper they're printed on.

Consumer Action Law Centre's Nicole Rich says while private carpark companies do not have authority to issue penalties, they cleverly get around it by claiming, because you've breached the conditions of their contract, they must recover costs. So they seek what's called 'liquidated damages' of $88.

"They're asking you to pay damages. And that is a tricky legal question for an individual to navigate especially to a company that's used to sending out thousands of these."

"If there is no boom gate, if there is a sign saying the parking is free, it doesn't occur to people that they need a ticket to access that."

"Let's get this very clear. Private companies whether it is a private carpark or any other company cannot fine you. Only governments have the power to fine you," said Rich.

"We have really big concerns that stores are just outsourcing the management of these carparks to companies that don't treat their customers well at all."

So how on earth do carparks get your address? To make liquidated damages claims on shoppers, they apply to the magistates or local court for access to the state's road authorities private database. The courts grant it, so the authorities simply hand over drivers details to the carpark companies so they can threaten you - pay up or else!

Craig Kelly took Australian National Carparks on.

"We took this to the Consumer Tenancy and Trading Tribunal and they rolled over immediately."

"If a consumer gets one of these fines they should firstly throw it in the bin. If they then receive a letter through the mail, they should write to the company and tell them that they have no intention to pay," said Kelly.

"It's simply illegal because it's misleading and deceptive conduct from start to finish."

"They have no lawful entitilement to charge liquidated damages of $88 when it costs $2 an hour to park. That is simply a penalty and unenforceable. We would like to know where is the ACCC. We have the ACCC job to shut down scams and frauds like this."

The Victorian Consumer Action Law Centre advises don't just automatically pay - its website offers various options to consider.

"We are relying on individual after individual to stand up for their rights when it is actually a problem affecting thousands of people and it is time for the government to step up and enforce the law and stop misleading practices from ripping off consumers," Rich said.

Some local councils are trying to close down private carparks, as, in some cases, they haven't received planning permission.

Further information

Victorian Consumer Action Law Centre:
www.consumeraction.org.au

Coles spokesman, Jim Cooper: "Shopping centre landlords have responsibility for car parking at shopping centres where Coles is located. In our negotiations with landlords, Coles always tries to secure free, convenient carparking for customers. However, in some circumstances, landlord or centre owners may engage an external company to manage a carpark. This usually because the centre is located near a transport hub, and the centre owners are trying to prevent non-shoppers parking all day when they catch public transport to work, disadvantaging genuine customers. Where such arrangements are put in place, Coles negotiates with landlords to ensure customers can get at least two hours, and usually three, of free parking. Coles receives no payments from Australian National Carparks or any other private carpark operator."