Travel booking app Hopper has agreed to pay $35 million to settle a lawsuit brought by the U.S. Federal Trade Commission (FTC), which accused the company of using deceptive practices to charge hidden fees and misrepresent the true cost of its services. The settlement marks another significant action by regulators against 'dark patterns' – user interface designs that manipulate consumers into making choices they might not otherwise have made.
The FTC alleged that Hopper misled users regarding the benefits and costs of its 'VIP Support' and 'Price Freeze' offerings. Consumers reportedly faced additional charges for 'Tip' and VIP Support fees that were presented as optional but often pre-selected and obscured within the app's interface. This meant users were charged for services they believed they hadn't consented to, with these fees often only becoming visible upon scrolling down the app screen.
Furthermore, the 'Price Freeze' or 'Hold the Room' service, which promised to secure booking prices for a set period, allegedly failed to clearly communicate crucial restrictions. The FTC noted that the price freeze often secured rates only up to a specific limit and was contingent on the booking remaining available, details that were not adequately disclosed to users.
In a statement, a Hopper spokesperson indicated that the company chose to settle to avoid prolonged litigation, stating the claims were 'outdated' and had 'no bearing on our business'. They added that the FTC's allegations primarily focused on display practices implemented during the pandemic, limited to the Hopper app, and discontinued by mid-2023, prior to the FTC's inquiry.
This settlement is part of a wider regulatory effort to tackle 'junk fees' and deceptive online practices. Previous FTC actions have targeted companies such as Match, StubHub, and Fortnite for similar issues, while Booking Holdings also settled with the Texas Attorney General over hidden fees. The focus on transparent pricing and clear disclosure is intensifying across the digital economy.