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 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.

“We decided to settle because the claims at issue are outdated and have no bearing on our business,” a company spokesperson said in a provided statement to TechCrunch. “Pursuing years of litigation over outdated, ticky-tacky issues would distract us from our current customers and partners… The settlement amount does not reflect the merit of the claims.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.”