Cutter Law and Almeida Law Group File Lawsuit Alleging Unlawful 'Junk Fees' on Cal Parks' Reservation Site, Oakland, California - May 8, 2025

Rhea-AI Summary

A class action lawsuit has been filed against Tyler Technologies (NYSE: TYL) over alleged unlawful 'junk fees' charged on California's parks reservation website, ReserveCalifornia.com. The lawsuit claims Tyler Technologies imposes undisclosed transaction fees that increase reservation costs by over 20% and misleads customers into believing these fees go to Cal Parks. According to internal records, these fees are projected to generate $37 million in FY 2025/26 and $398 million over the contract period. The lawsuit alleges violations of California's Honest Pricing Act, which banned junk fees as of July 2024, along with other state laws. Tyler Technologies, with $2.13 billion in 2024 revenue and a $23 billion market cap, is accused of violating its contractual obligations to comply with California laws while operating the website.

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• Facing class action lawsuit over alleged illegal junk fees on California parks reservations
• Accused of deceptive practices by misleading customers about fee recipients
• Potential violation of California's Honest Pricing Act and other state laws
• Risk of significant financial impact with $398 million in disputed fees over contract life

Insights

Legal Expert

Tyler Technologies faces class action lawsuit over alleged illegal reservation fees potentially worth $398M, testing California's new Honest Pricing Act.

This newly filed class action lawsuit against Tyler Technologies represents a significant legal challenge with potential material implications. The plaintiffs allege Tyler is violating California's Honest Pricing Act (effective July 2024), which explicitly prohibits businesses from advertising prices that don't include all mandatory fees.

The core allegations are twofold: first, that Tyler charges $37 million annually in what plaintiffs characterize as "junk fees" on the ReserveCalifornia.com platform; second, that consumers are misled to believe these fees go to Cal Parks when Tyler allegedly retains them. According to the lawsuit, these practices potentially violate multiple California consumer protection laws, including the Consumer Legal Remedies Act, False Advertising Law, and Unfair Competition Law.

Most concerning from a legal risk perspective is the claim that Tyler has contractual obligations to comply with California laws yet is allegedly violating them. This could potentially constitute a breach of its government contract beyond just statutory violations. The projected $398 million over the contract's lifetime represents the alleged fee revenue, not necessarily the damages sought, though it indicates the potential scale of exposure.

This case may become an important test of California's new Honest Pricing Act in the context of government contractors. The plaintiffs have strategically framed this as taking advantage of an underfunded state parks system, which could resonate with the court. While the lawsuit is in its earliest stages and these remain unproven allegations, it presents both financial and reputational risk factors that merit careful monitoring.

OAKLAND, Calif., May 8, 2025 /PRNewswire/ -- Plaintiffs filed a class action lawsuit challenging what they allege are unlawful 'junk fees' charged on the California Department of Parks and Recreation camping reservation website, ReserveCalifornia.com. The website is run by the government contracting company Tyler Technologies, Inc.

The suit alleges that Tyler Technologies imposes unlawful last-minute transaction fees on reservations that are booked through Reserve California, often increasing the cost of a reservation by more than 20%. The lawsuit further contends that customers are falsely led to believe that the reservation fees are being paid to and kept by Cal Parks, when in reality, Tyler Technologies keeps the reservation fees for itself.

Internal government records filed in the lawsuit reflect that the fees kept by Tyler Technologies are projected to add up to over $37 million in fiscal year 2025/26 and $398 million over the life of the contract.

Effective July 1, 2024, California enacted the Honest Pricing Act, S.B. 478, a law that explicitly bans "junk fee" practices by prohibiting businesses from "[a]dvertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges." The Honest Pricing Act was met with widespread support from consumer advocates and state officials, with the California Office of the Attorney General issuing public guidance that under the new law "the price a Californian sees should be the price they pay."

According to the lawsuit, under its contract with Cal Parks, Tyler Technologies is "obligat[ed] to comply with federal and California laws and regulations" in operating the website. The lawsuit claims that Tyler Technologies has not met its obligation.

"What we see here is an out of state company coming into California, ignoring our laws, and violating the terms of its contract with the state," said Wesley M. Griffith, one of the attorneys who filed the lawsuit. "Perhaps even more troubling, Tyler Technologies' design and operation of the Cal Parks reservation website creates the false impression that these unlawful fees are being kept by Cal Parks, which is grossly underfunded. These junk fees take money away from park operations."

The lawsuit states that only the junk fees charged and kept by Tyler Technologies are at issue, and that any revenue retained by Cal Parks is not being challenged.

"The bottom line is that what Tyler Technologies is doing is not just deceptive, it's also illegal," said John Roussas, another of the attorneys involved. "This isn't some mom-and-pop shop. This is a large, sophisticated company with dedicated legal and compliance departments. Tyler Technologies knew—or should have known—better."

Tyler Technologies is a publicly traded company (NYSE symbol: TYL), with reported annual revenue of $2.13 billion in 2024, and a market capitalization of approximately $23 billion.

"These unavoidable, surprise charges that add no value to consumers are precisely the type of junk fees that the FTC and the State of California are cracking down on to promote transparent pricing and fair competition," said Karen Dahlberg O'Connell, another attorney who is involved in the lawsuit.

The class action lawsuit seeks to represent all customers who were charged a junk fee that was kept by Tyler Technologies. Plaintiffs state that Tyler Technologies' practices violate the California Consumer Legal Remedies Act, the California Honest Pricing Act, California's False Advertising Law, and California's Unfair Competition Law, among other laws.

The case is Chowning vs. Tyler Technologies, Inc., United States District Court for the Northern District of California, Case No. 3:25-cv-04009. Consumer advocacy attorneys Wesley M. Griffith and John Roussas of Cutter Law P.C. and Karen Dahlberg O'Connell of Almeida Law Group, LLC represent plaintiffs in the lawsuit.

Media Contact: Wesley M. Griffith, 530-490-3178, wgriffith@cutterlaw.com (through May 9) and wes@almeidalawgroup.com (effective May 10).

View original content:https://www.prnewswire.com/news-releases/cutter-law-and-almeida-law-group-file-lawsuit-alleging-unlawful-junk-fees-on-cal-parks-reservation-site-oakland-california---may-8-2025-302450556.html

SOURCE Cutter Law, P.C.

FAQ

What is the lawsuit against Tyler Technologies (TYL) about?

The lawsuit alleges Tyler Technologies charges unlawful 'junk fees' on ReserveCalifornia.com, increasing reservation costs by over 20% and misleading customers to believe these fees go to Cal Parks when Tyler keeps them.

How much revenue is at stake in Tyler Technologies' California parks reservation fee lawsuit?

The disputed fees are projected to generate $37 million in fiscal year 2025/26 and total $398 million over the life of the contract.

What laws did Tyler Technologies allegedly violate in the California parks reservation system?

Tyler Technologies allegedly violated California's Honest Pricing Act, Consumer Legal Remedies Act, False Advertising Law, and Unfair Competition Law through their fee practices.

What is Tyler Technologies' (TYL) annual revenue and market capitalization?

Tyler Technologies reported annual revenue of $2.13 billion in 2024 and has a market capitalization of approximately $23 billion.

What penalties could Tyler Technologies face from the California parks reservation lawsuit?

The class action lawsuit seeks to represent all customers charged these fees, potentially requiring Tyler Technologies to refund fees and modify practices to comply with California laws.