Travel app Hopper will pay $35 million in FTC settlement for ‘unfairly charging’ hidden fees

Hopperthe travel app known for its AI-driven flight and hotel price predictions, has agreed to a $35 million settlement After a lawsuit filed by the US Federal Trade Commission (FTC). The lawsuit accused the company of misleading users by charging hidden fees and misrepresenting the total costs of Hopper’s services.

This case is another example of regulators targeting the use of “dark patterns,“Or interface designs that manipulate users into making choices they would not have otherwise made, including those that hide fees, pre-determine optional add-ons, or make it difficult to understand the true cost of a service.” It follows similar FTC settlements targeting other companies, such as match, StubHubNewbank Dave, fortniteand Others.

The FTC alleged that Hooper deceived consumers regarding the benefits of its “VIP support” and “price freeze” services. Many users were led to believe that these features would improve 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 offered as optional, yet were often predetermined and hidden within the app’s interface. As a result, users found themselves facing charges they believed they did not agree to, as these charges were typically only visible when users scrolled down the app’s screen.

The allegations extend to a “price freeze” or “room hold” offer, which Hopper claimed would allow consumers to hold the price of their travel reservation for a specified period. However, the FTC noted that the app failed to clearly communicate the limitations associated with this service. For example, a price freeze only guarantees the price up to a certain limit and only if the reservation remains available.

The settlement amount will be used to “compensate the consumer,” with Hopper now prohibited from misrepresenting any pricing structures, according to today’s statement. Hopper is required to clearly disclose all fees, ensuring that users are fully aware of the total cost of any transactions before completing their reservations.

“We decided to settle because the claims in question are old and have no impact on our business,” a company spokesperson said in a statement provided to TechCrunch. “Pursuing years of litigation on outdated and frivolous issues would distract us from our existing clients and partners… The settlement amount does not reflect the merit of the claims.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 filings dating back to 2021, the FTC’s allegations focused on “outdated bidding practices implemented primarily during the pandemic, limited to the Hopper app, and discontinued by Hopper in mid-2023, before the FTC investigation began.”

Before Hopper, the FTC’s most recent crackdown on “junk fees” was its case StubHubWhich agreed to pay customers $10 million and change the ticket prices offered. Booking Holding The company settled for $9.5 million after a lawsuit filed by Texas Attorney General Ken Paxton, which claimed it misled customers by showing low room rates while hiding important fees until the checkout process.

Hopper Fired His travel app is back in 2014 and beyond 120 million lifetime downloads Worldwide in 2024.

This story has been updated with a statement from Hopper.