Hopper to Pay $35M Settlement Over Hidden Fees Dispute

The travel booking platform Hopper has committed to a $35 million settlement with the U.S. Federal Trade Commission (FTC). The agreement follows a federal lawsuit alleging that the company misled travelers through the use of hidden charges and deceptive interface designs.

Regulators targeted the company’s use of “dark patterns”—interface manipulations that influence user behavior—to obscure the actual cost of services. According to the FTC, these tactics included pre-selecting optional add-ons and burying fees where they remained invisible unless a user actively scrolled through the app’s checkout screens.

Allegations of Deceptive Pricing

The FTC’s investigation highlighted several specific areas where Hopper allegedly deceived consumers:

• VIP Support and Tips: Users were frequently charged for “Tip” and “VIP Support” fees that appeared as optional but were often pre-selected by default.
• Price Freeze Limitations: The company’s “Price Freeze” or “Hold the Room” service was criticized for failing to clearly explain significant restrictions, such as rate caps and availability conditions.
• Service Misrepresentation: The commission stated that many users purchased features expecting enhanced support, only to encounter restricted access and unexpected costs.

Under the terms of the $35 million settlement, the funds are designated for consumer redress. Furthermore, Hopper is now legally prohibited from misrepresenting its pricing structures and must ensure that all fees are disclosed clearly before a transaction is finalized.

Hopper’s Response

A spokesperson for Hopper characterized the claims as “outdated” and unrelated to the company’s current operations. “We decided to settle because the claims at issue are outdated and have no bearing on our business,” the representative stated, adding that the settlement does not constitute an admission of the merit of the allegations.

The company noted that an internal review of millions of files suggests the disputed practices were limited to the app during the pandemic era and were discontinued by mid-2023, well before the FTC inquiry commenced. “Pursuing years of litigation over outdated, ticky-tacky issues would distract us from our current customers and partners,” the spokesperson added.

Broader Regulatory Context

This enforcement action aligns with a wider crackdown by the FTC on so-called “junk fees” across the digital economy. Recent years have seen similar settlements involving companies such as Match, Fortnite, and the neobank Dave. Most recently, StubHub agreed to a $10 million settlement, while Booking Holdings paid $9.5 million to resolve claims regarding deceptive room rate displays.

Hopper, which launched in 2014, has experienced significant growth in the travel sector, reporting over 120 million lifetime downloads worldwide as of 2024.