"This isn't about Above & Beyond, it's not even about the drug dog program. It's fundamentally about the right to go about your business without being unlawfully stopped by the police," Greens MP David Shoebridge said.
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"If they can stop and search young people at a festival, the next day it'll be any of us walking down the street in the city," he added.
Police on Wednesday did not answer questions about sniffer dogs' efficacy, which has long been under a cloud.
Statistics obtained from the state government show that, of searches conducted in 2011, a dog sat next to a person to indicate they might be carrying drugs in 14,102 cases. In 11,248 cases - approximately 80 per cent - no drugs were found.
Activist Tom Raue is one of the three parties planning to seek the injunction. They will be represented pro-bono by barrister Sean Brennan and Executive Legal.
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The 27-year-old said the often-inaccurate dog indications prompt body searches that leave punters feeling violated.
Festival presenters Symbiotic said that it would be issuing on-the-spot refunds to those refused entry.
"Refunds will be made available to anyone that is denied entry to the event due to this circumstance," the statement on Facebook read.