Hopper Agrees to $35 Million FTC Settlement Over Hidden Fees and Deceptive Practices
Technology

Hopper Agrees to $35 Million FTC Settlement Over Hidden Fees and Deceptive Practices

Travel app Hopper has reached a $35M settlement with the FTC after allegations of hiding fees and misleading users through manipulative design tactics.

By Mick Smith4 min read

Hopper Settles with FTC for $35 Million Over Deceptive Fee Practices

Popular travel app Hopper has agreed to pay $35 million to resolve a federal lawsuit filed by the U.S. Federal Trade Commission (FTC), which accused the company of deliberately concealing fees and misrepresenting the true costs of its services to consumers.

Hopper, widely recognized for its artificial intelligence-powered predictions on flight and hotel pricing, now joins a growing list of companies facing regulatory consequences for employing so-called "dark patterns" — manipulative user interface designs that steer consumers toward decisions they may not have intentionally made.

What the FTC Alleged Against Hopper

At the heart of the FTC's complaint were allegations that Hopper misled users about the value and functionality of two key offerings: its "VIP Support" and "Price Freeze" features. Consumers were reportedly led to believe these services would meaningfully improve their booking experience, only to discover unexpected charges and restricted access to support once they had already committed.

The agency also found that fees labeled as optional — including charges for "Tip" and VIP Support — were frequently pre-checked within the app's interface, making it easy for users to unknowingly agree to them. These charges were often buried in areas of the screen that required users to scroll down to see, making genuine informed consent difficult.

The Price Freeze Problem

Hopper's "Price Freeze" and "Hold the Room" features came under particular scrutiny. The company marketed these tools as a way for travelers to lock in a specific price for a set period of time. However, the FTC determined that Hopper failed to adequately disclose critical limitations tied to these services — most notably, that the price lock only applied up to a defined ceiling and was contingent on the booking remaining available throughout the freeze window.

What the Settlement Requires

Under the terms of the $35 million settlement, the funds will be directed toward consumer redress for affected users. Going forward, Hopper is legally prohibited from misrepresenting its pricing structures and is required to clearly and conspicuously disclose all applicable fees before a transaction is finalized. The goal is to ensure that travelers have a complete and accurate picture of what they will be charged before completing any booking.

A Broader Crackdown on Junk Fees

This settlement is the latest in a series of FTC enforcement actions targeting hidden or deceptive fees across various industries. Prior to the Hopper case, the agency had reached a $10 million settlement with ticketing platform StubHub, requiring the company to overhaul how it displays ticket prices. Booking Holdings also settled for $9.5 million following a lawsuit from the Texas Attorney General, which alleged that the company displayed artificially low room rates while concealing mandatory fees until the final stages of checkout.

The FTC's continued focus on dark patterns signals a clear regulatory direction: companies that obscure costs or manipulate user interfaces to extract additional revenue from consumers can expect heightened scrutiny and significant financial consequences.

About Hopper

Founded and launched as a consumer travel app in 2014, Hopper has grown into one of the most downloaded travel platforms globally, surpassing 120 million lifetime downloads worldwide by 2024. The company built its reputation on using predictive AI to help travelers identify the best times to book flights and hotels for the lowest possible prices — making the allegations of hidden charges a particularly striking contrast to its user-friendly brand image.