Travel app Hopper to pay $35M in FTC settlement over ‘unfairly’ charging hidden fees
Hopper, the travel app known for its AI-driven flight and hotel price predictions, has agreed to a $35 million settlement following a lawsuit brought by
Hopper, the travel app known for its AI-driven flight and hotel price predictions, has agreed to a $35 million settlement following a lawsuit brought by the U.S. Federal Trade Commission (FTC). The lawsuit accused the company of misleading users by imposing hidden fees and misrepresenting the total costs of Hopper’s services. The case is another example of regulators targeting the use of “dark patterns,” or interface designs that manipulate users into making choices they might not otherwise have made, including those that hide charges, pre-select optional add-ons, or make it difficult to understand the true cost of a service. It follows similar FTC settlements aimed at other companies, like Match, StubHub, neobank Dave, Fortnite, and others.
The FTC alleged that Hopper deceived consumers regarding the benefits of its “VIP Support” and “Price Freeze” services. Many users were led to believe that these features would enhance their booking experience, only to find themselves facing additional costs and limited access to customer support. The FTC also found that users were charged for “Tip” and VIP Support fees that were presented as optional, yet were often pre-selected and hidden within the app’s interface. As a result, users found themselves facing charges that they believed they had not consented to, as these fees were typically only visible when users scrolled down on the app screen.
The allegations extend to the “Price Freeze” or “Hold the Room” offering, which Hopper claimed would allow consumers to hold their travel booking price for a designated period. However, the FTC notes that the app failed to clearly communicate restrictions associated with this service. For instance, the Price Freeze only secures the rate up to a specific limit and only if the booking remains available. The settlement amount is set to be used for “consumer redress,” with Hopper now prohibited from misrepresenting any pricing structures, according to today’s release. It’s required that Hopper clearly disclose all fees, ensuring that users are fully aware of the total cost of any transactions before completing their bookings.
Before Hopper, the FTC’s most recent crackdown on “junk fees” was its case with StubHub, which agreed to pay $10 million to customers and change its ticket price displays. Booking Holdings settled for $9.5 million after a lawsuit from Texas Attorney General Ken Paxton, which claimed that it misled customers by showing low room rates while hiding important fees until the checkout process. Hopper launched its travel app back in 2014 and surpassed 120 million lifetime downloads worldwide in 2024.
The BriefWire