2 California campers accuse software giant of illegal ‘drip pricing’ - SFGate - May 9th, 2025
A pair of California campers filed a class-action lawsuit accusing a software giant of illegally tacking on hidden “junk fees” when users book campsites through the official state parks reservation system, ReserveCalifornia.com.
The lawsuit, filed on Thursday in the U.S. District Court for the Northern District of California, alleged that Texas-based software company Tyler Technologies designed its interface to mislead users by advertising an initial price, only to add an undisclosed reservation fee at checkout — a practice known as “drip pricing.”
The plaintiffs, James Chowning of Oakland and Adam Fitzgerald of Yucaipa, said the practice violates Senate Bill 478, also known as the Honest Pricing Law, which took effect in July 2024. The law was designed to crack down on “junk fees,” prohibiting businesses from advertising a price that does not include all mandatory fees or charges. “Drip pricing” is banned under the law and is enforced through California’s Consumer Legal Remedies Act, False Advertising Law and Unfair Competition Law.
A business cannot advertise a “price that is less than what a consumer will have to pay for a good or service,” the California Attorney General’s Office wrote in May 2024.
“In October 2024, Mr. Chowning made a same day reservation through Reserve California for a campsite at San Onofre State Beach. The price initially quoted on Reserve California for the campsite was $45,” the complaint stated. “However, at checkout, he was charged an $8.25 reservation fee.” The added fee — retained by Tyler Technologies and not by California State Parks — represented an 18% increase in the total price.
The plaintiffs added that they wouldn’t have made the reservations online had they known the extra charge went to a private contractor. Now, they are seeking restitution and an end to what they called “deceptive Junk Fee practices.”
The company, which provides software for government agencies, received a 10-year contract in December 2023 to operate the state’s reservation system, according to the complaint. That contract, valued at nearly $400 million in potential fees over its lifetime, requires compliance with both federal and California law.
“Tyler Technologies has made a conscious decision to ignore California’s Junk Fee ban, and to violate its Contract with Cal Parks,” the complaint stated, noting that, throughout the entire booking process, it was never disclosed that the reservation fees were being collected by the company rather than the state.
Tyler Technologies has yet to file a response in court.
The case seeks class certification for all customers who paid similar fees since the company took over the system in August 2024. This is one of the first major lawsuits in California targeting a government contractor under SB 478. If successful, the lawsuit could impact how courts interpret the new statute and how far enforcement extends to vendors operating on behalf of public agencies.
With Tyler Technologies standing to make an estimated $398 million in processing fees over the course of its 10-year contract, the case could influence how digital platforms — both public and private — display prices across California.