Key facts
- Hopper agreed to a $35 million settlement with the U.S. Federal Trade Commission.
- The FTC accused Hopper of misleading consumers with hidden fees and deceptive pricing.
- Users were allegedly charged for 'Tip' and 'VIP Support' fees that were pre-selected.
- The 'Price Freeze' service allegedly failed to clearly communicate restrictions.
- The settlement funds will be used for consumer redress.
- Hopper must now clearly disclose all fees before bookings are completed.
Hopper, a travel app known for its AI-driven price predictions, has agreed to pay $35 million to settle a lawsuit filed by the U.S. Federal Trade Commission (FTC). The FTC alleged that Hopper engaged in deceptive practices by imposing hidden fees and misrepresenting the total costs of its services. This case is part of a broader regulatory effort targeting 'dark patterns'—interface designs that manipulate users into unintended choices.
The commission specifically cited issues with Hopper's 'VIP Support' and 'Price Freeze' services, claiming users were misled about their benefits and faced unexpected charges. Fees for 'Tip' and 'VIP Support' were often pre-selected and obscured within the app's interface, leading to charges users believed they had not consented to. The 'Price Freeze' offering also allegedly failed to clearly communicate its limitations, such as rate caps and availability restrictions.
As part of the settlement, Hopper is prohibited from misrepresenting pricing structures and must clearly disclose all fees to users before they complete transactions. The funds from the settlement will be allocated for consumer redress. This action follows similar FTC settlements with companies like Match and StubHub, and a settlement by Booking Holdings with the Texas Attorney General over similar alleged deceptive fee practices.