Hopper Agrees to $35M FTC Settlement Over Hidden Fee Allegations
Travel booking app Hopper has agreed to pay $35 million to settle allegations brought by the U.S. Federal Trade Commission (FTC), after regulators accused the company of charging users hidden fees and failing to clearly disclose the full cost of some travel services.
FTC Targets Hidden Fees in Travel Booking
According to the FTC, the companies behind the Hopper travel apps misrepresented the total prices consumers would pay and the benefits of certain paid services, including “VIP Support” and “Price Freeze.” The regulator said Hopper will also be barred from deceiving customers about fees going forward.
The case adds to growing regulatory scrutiny around “dark patterns,” a term used to describe digital design choices that may push users into paying for services or accepting options they did not clearly choose. These can include pre-selected add-ons, hard-to-see fees, or interfaces that make the true price difficult to understand.
Allegations Around “Tip” and “VIP Support” Fees
The FTC alleged that Hopper charged users for “Tip” and VIP Support fees that were described as optional but were often pre-selected inside the app. In some cases, users had to scroll down to see that these extra charges had already been added before completing a booking.
Regulators said this meant some customers paid additional fees without giving clear consent. The FTC also alleged that Hopper promoted VIP Support as a service that could provide fast access to customer assistance, while many consumers were unable to reach support quickly or at all.
Questions Over “Price Freeze” and “Hold the Room”
The FTC also raised concerns about Hopper’s “Price Freeze” service, also known as “Hold the Room.” The feature was marketed as a way for users to lock in a travel price for a set period before completing their booking.
However, regulators said Hopper did not clearly explain key restrictions. According to the FTC, the service only protected the price up to a certain amount and only if the booking was still available. The complaint also alleged that Hopper did not always apply the Price Freeze fee toward the final booking cost as promised.
Settlement Funds to Support Consumer Redress
The $35 million settlement will be used for “consumer redress.” Under the proposed order, Hopper must clearly disclose fees and charges, show the total price of goods or services, and make the final payment amount clear before a transaction is completed.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said: “Hopper deceived consumers by showing them a total price that did not include hidden, pre-selected fees.” He added that the Commission would continue using available tools to promote price transparency and address unfair or deceptive pricing, billing, and cancellation practices.
Hopper Says the Claims Are Outdated
Hopper rejected the idea that the settlement reflected the strength of the FTC’s allegations. A company spokesperson told TechCrunch: “We decided to settle because the claims at issue are outdated and have no bearing on our business,” adding, “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 also said 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.”
Part of a Wider Crackdown on “Junk Fees”
The Hopper case follows other recent enforcement actions linked to pricing transparency. Before this settlement, StubHub agreed to pay $10 million to customers and change how it displays ticket prices. Booking Holdings also settled for $9.5 million following a lawsuit from Texas Attorney General Ken Paxton, which alleged that customers were shown low room rates while important fees appeared later in the checkout process.
Hopper’s Growth in the Travel Market
Hopper launched its travel app in 2014 and surpassed 120 million lifetime downloads worldwide in 2024. The company has become known for using AI-driven price prediction tools for flights, hotels, and other travel services.
The settlement highlights a broader issue for digital platforms: customers, regulators, and business partners are increasingly expecting full price transparency from the start of the buying process. For travel technology companies, clear fee disclosure is no longer just a compliance matter — it is also a trust issue.
Online References
Federal Trade Commission — Hopper settlement announcement.
TechCrunch — Hopper response and company background.
BetaKit — Additional coverage of the Hopper settlement.
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