Hopper's travel app promised to help users save money. But the Federal Trade Commission said it actually tricked them into paying extra. Now the company will pay $35 million to settle the case. The app had surpassed 120 million lifetime downloads worldwide in 2024, yet regulators found its pricing tactics unfair.
The Allegations
The FTC stated that Hopper utilized "dark patterns" - interface elements that steer users into decisions they did not intend to make. For example, the app pre-selected optional fees like a "Tip" and "VIP Support." Users found themselves facing charges they believed they had not consented to, as these fees were typically only visible when users scrolled down on the app screen.
Hopper also misled customers about its "Price Freeze" and "VIP Support" services. The company did not clearly communicate restrictions associated with these services. For instance, the Price Freeze only secures the rate up to a specific limit and only if the booking remains available.
The FTC reviewed company files dating back to 2021. Hopper says it stopped these disputed display practices in mid-2023.
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The Settlement
The $35 million payment is set to be used for "consumer redress." Hopper is now prohibited from misrepresenting any pricing structures. The app must clearly disclose all fees, ensuring users are fully aware of the total cost of any transactions before completing their bookings.
This is not the first travel-related settlement over junk fees. StubHub paid $10 million in a previous FTC case. Booking Holdings paid $9.5 million after a lawsuit from Texas Attorney General Ken Paxton over hidden fees. The pattern is clear: regulators are cracking down on tricky pricing.
More on the Dark Patterns
The FTC's complaint detailed how Hopper's interface nudged users toward higher payments. The "Price Freeze" or "Hold the Room" offering allowed consumers to hold their travel booking price for a designated period, but the app failed to clearly communicate that the Price Freeze only secures the rate up to a specific limit and only if the booking remains available.
These practices, the FTC alleged, deceived consumers about the benefits of Hopper's "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.
Worth Noting
Hopper's spokesperson said the claims are based on "primarily outdated display practices implemented during the pandemic" that ended in mid-2023. "We decided to settle because the claims at issue are outdated and have no bearing on our business," the spokesperson added. "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 settlement shows that regulators are watching how apps display prices.
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