Travel app Hopper to pay $35M in FTC settlement over 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 by the U.S. Federal Trade Commission (FTC). The lawsuit accused the company of misleading users by imposing hidden fees and misrepresenting total costs. This case is another example of regulators targeting "dark patterns"—interface designs that manipulate users into making choices they might not otherwise make, including hiding charges, pre-selecting optional add-ons, or obscuring the true cost of a service. Similar FTC settlements have involved Match, StubHub, neobank Dave, Fortnite, and others.

The FTC alleged that Hopper deceived consumers about the benefits of its "VIP Support" and "Price Freeze" services. Many users were led to believe these features would enhance their booking experience, only to face additional costs and limited customer support. The FTC also found that users were charged "Tip" and VIP Support fees presented as optional but often pre-selected and hidden within the app's interface. These charges were typically only visible when users scrolled down. Allegations also extended to the "Price Freeze" or "Hold the Room" offering, which Hopper claimed would allow consumers to hold their travel booking price for a period. However, the FTC noted that the app failed to clearly communicate restrictions—for example, the freeze only secures a rate up to a limit and only if the booking remains available.

The settlement amount is to be used for "consumer redress," and Hopper is now prohibited from misrepresenting any pricing structures. It must clearly disclose all fees, ensuring users are fully aware of total costs before completing bookings. "We decided to settle because the claims at issue are outdated and have no bearing on our business," a company spokesperson said. "Pursuing years of litigation over outdated, ticky-tacky issues would distract us from our current customers and partners… The settlement amount does not reflect the merit of the claims. It reflects our decision to move forward." The spokesperson added that, after reviewing millions of company files dating back to 2021, the FTC's allegations focused on "primarily outdated display practices implemented during the pandemic, limited to the Hopper app, and discontinued by Hopper in mid-2023, prior to the start of the FTC's inquiry."

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 it misled customers by showing low room rates while hiding important fees until checkout. Hopper launched its travel app in 2014 and surpassed 120 million lifetime downloads worldwide in 2024.