Hopper Agrees to $35 Million FTC Settlement Over Hidden Fees

Settlement, fines

WASHINGTON, D.C. — The companies behind the Hopper travel app will pay $35 million to settle Federal Trade Commission allegations that they misled consumers about the true cost of bookings by charging hidden fees and misrepresenting the benefits of certain paid services.

The FTC alleged that Hopper Inc. and Hopper (USA) Inc. advertised “no hidden fees” while adding pre-selected charges for “Tip” and VIP Support services that consumers did not knowingly authorize.

“Hopper deceived consumers by showing them a total price that did not include hidden, pre-selected fees,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.

According to the complaint, consumers booking flights, hotels and rental cars through Hopper’s apps were shown a “total price” that excluded the additional fees until late in the purchase process. The agency alleged that the fees were hidden on a screen that appeared only if users scrolled down and that the charges generated millions of dollars in revenue for the company.

READ:  Amazon to Pay Record FTC Penalty Over Identity Theft Records

The complaint also cites consumer complaints and internal company communications indicating concerns about the fee practices. In one internal message cited by the FTC, an employee wrote, “To me, the problem here is that we’re tricking users.”

The agency further alleged that Hopper’s own testing showed consumers would decline the Tip and VIP Support charges if they were adequately disclosed and not selected by default.

The FTC also accused Hopper of overstating the benefits of its VIP Support service, which promised near-instant access to customer service representatives. According to the complaint, many users who paid for the service were unable to reach an agent or faced lengthy delays.

READ:  FTC Extends Ad Collusion Orders to Final Big Six Agency

Regulators additionally challenged Hopper’s “Price Freeze,” or “Hold the Room,” feature, which allowed customers to pay a fee to lock in a travel price for a period of time. The FTC alleged the company failed to clearly disclose key restrictions on the service and did not apply the fee toward the final booking price as promised.

The agency alleged Hopper’s conduct violated the Federal Trade Commission Act and, for short-term lodging bookings made since May 12, 2025, the FTC’s Unfair and Deceptive Fees Rule.

Under the proposed settlement, the company must pay $35 million for consumer redress and is barred from misrepresenting fees or failing to clearly disclose the total price and final amount consumers will pay.

The FTC voted 2-0 to file the complaint and proposed order in the U.S. District Court for the District of Massachusetts. The settlement will take effect if approved by the court.

READ:  FTC Finalizes $1.5 Million Order Over Self-Publishing Claims

Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.