Attorney General Neronha files lawsuit against parking company UPP Global for deceptive practices

Published on Wednesday, August 14, 2024

Attorney General Peter F. Neronha today announced the filing of a lawsuit against UPP Global, LLC (UPP Global), a parking management company that operates parking lots in Providence, Newport, and East Greenwich, for a pattern of unfair and deceptive practices targeting Rhode Island consumers.

As alleged in the complaint, UPP Global engaged in a pattern of unfair and deceptive conduct including charging customers fees disguised as a “tax,” charging junk “service fees,” failing to disclose parking rates until customers have already parked, and issuing “citations” that mimic government-issued parking tickets and falsely threaten consequences from the Division of Motor Vehicles. Additionally, the Complaint alleges that UPP Global is violating Rhode Island consumers’ right to pay for products and services in cash by requiring all customers to pay by credit or debit card. The Attorney General is seeking (1) a court order requiring UPP to stop engaging in unfair and deceptive conduct; (2) to provide restitution to harmed customers; and (3) an appropriate civil penalty to punish and deter illegal conduct.

“As alleged, UPP Global has employed a number of unfair and deceptive tactics targeting Rhode Island residents and visitors alike,” said Attorney General Neronha. “Our lawsuit against this company seeks to put an immediate halt to these alleged deceptive practices that are harming consumers, and to pay back consumers any money that was collected by unlawful means. In the meantime, my Office will continue to use our consumer protection laws to defend Rhode Island consumers and go after businesses that don’t play by the rules, thereby protecting those businesses that do. Because consumers deserve better, and competing businesses deserve an even playing field.”

Deceptive Sales Tactics

As alleged in the complaint, UPP Global attempted to collect parking fees from customers by issuing deceptive “citations.” These “citations” mimic the appearance of a government-issued parking ticket by using language that may lead consumers to believe that they were issued by a government entity. Furthermore, these citations deceptively threaten consumers who fail to pay the “fine” with potential consequences for their driver’s license and vehicle registration, threats well outside the jurisdiction of a private company. Additionally, UPP Global threatens that failing to pay the “citation” may harm a consumer’s credit and ability to rent vehicles in the future, which is either deceptive or unfair, depending on whether UPP Global follows through on this threat or not. 

According to the complaint, one consumer paid $18 to park at UPP Global’s 125 Dorrance Street lot on September 17, 2023, and upon returning to her vehicle, she received a “citation” that demanded an additional $63, also stating that if the “citation” was not paid by October 17, 2023, she would owe $103. Subsequently, she received a “Notification of Delinquent Payment” in the mail, which stated that “penalties may include vehicle immobilization and/or towing at additional expense to you if parking on RI Parking Co. operated property.” According to the consumer, she asked a company employee on what basis they assessed the “citation,” and the employee provided no explanation, instead telling her that failure to pay could affect her license renewal and registration.

The complaint also alleges that UPP Global assessed fees disguised as sales taxes, as well as junk “service fees.” Parking facilities in Rhode Island are not subject to the State’s sales or use taxes and yet, UPP Global assessed a “tax” fee between seven and 10 percent at two of its Providence garages, which the company then keeps for itself. Further, at parking facilities where UPP Global does not charge a “tax” fee, it may still charge a 10 percent “service fee” that is not included in the hourly rate.

This suit is also the first of its kind seeking to enforce Rhode Islander’s right to pay for products or services in legal tender currency. This right, which was enshrined in law in 2019, prohibits businesses from discriminating against customers by requiring them to pay using credit. As explained by the legislature, some customers do not have access to credit and/or debit cards or may choose not to use them for privacy reasons. 

UPP Global manages more than 300 parking locations in nine states. According to the Secretary of State’s website, UPP Global registered to do business in the state in August 2019 and operates parking structures and lots serving some of the state’s most popular cultural venues and landmarks including the Amica Mutual Pavilion, the Providence Performing Arts Center, the Providence Arcade, and downtown Newport.

Assistant Attorney General Stephen Provazza, Chief of the Consumer & Economic Justice Unit, Special Assistant Attorney General Alex Carnevale, and Investigator Tayla Martins are handling the matter on behalf of the Office of the Attorney General.

Deceptive Trade Practices Act

In 2021, Attorney General Neronha worked with the General Assembly to pass legislation that restored the authority of the Office of the Attorney General to protect Rhode Island consumers against violations of the DTPA. Other efforts led by the Attorney General under the newly strengthened DTPA include lawsuits against auto dealers, contractors, and government imposters for allegedly unlawful behavior.

 

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