In section Startups & Technology

Hopper to Pay $35 Million to Settle FTC Hidden Fee Lawsuit

The travel booking app Hopper has reached a $35 million settlement with the Federal Trade Commission to resolve allegations of using deceptive interface designs. The company faced scrutiny for employing so-called dark patterns that obscured actual costs, pre-selected optional add-ons, and misled users about the true value of its premium service offerings.

Federal regulators targeted the app’s "VIP Support" and "Price Freeze" features, which the agency claimed were marketed through misleading interface prompts. Users frequently encountered charges for add-ons they believed were optional, often buried deep within the app’s checkout flow where they were easily missed. The "Price Freeze" tool specifically failed to disclose critical limitations, such as rate caps and availability contingencies, leaving travelers with unexpected costs.

Under the terms of the agreement, the $35 million will be directed toward consumer redress. Moving forward, Hopper is strictly prohibited from misrepresenting pricing structures and must provide clear, upfront disclosures for all fees. This action marks another aggressive step by the FTC against companies utilizing manipulative design patterns, following similar enforcement cases against StubHub, Match, and the developers of Fortnite. Launched in 2014, the app has amassed over 120 million downloads, making its opaque billing practices a significant point of concern for federal consumer protection watchdogs.

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