Claims parking spaces could be reserved through online bookings at more than 100 car parks across Australia have been described as false and misleading.
Secure Parking is facing possible penalties in the Federal Court over claims its Secure-a-Spot service would help consumers hold a parking spot.
The firm, which runs 474 car parks in Sydney, Brisbane, Perth, Adelaide, Melbourne and Hobart, is accused of breaching consumer law because parking spots could not be reserved especially in busy inner city locations which fill up quickly.
The Australian Competition and Consumer Commission filed a lawsuit on Wednesday arguing that Secure's car parks sometimes reached full capacity before people who booked through Secure-a-Spot arrived.
"Anyone who has ever driven into a capital city CBD will know that pre-booking a parking space helps puts your mind at ease," said ACCC commissioner Liza Carver.
"Some of the consumers who were unable to access the parking space they'd booked complained that they were late to, or entirely missed, appointments, events, and work commitments."
Individuals with disabilities that affected their mobility experienced "significant" harm from these false claims, the ACCC said.
The Secure-a-Spot service is offered at 104 of Secure's locations nationwide.
The service was promoted on Secure's website, via email, and through digital and social media ads through allegedly false claims people could book guaranteed and hassle-free parking.
"(Forget) the hassle, stress and expense of last-minute parking and book ahead with Secure-a-Spot. It's as simple as can be," the firm wrote.
As well as penalties, the ACCC is also seeking compliance orders, corrective notices and legal costs.
Secure is owned by Japan-based Park24 Co Ltd.
