Hopper to Pay $35M in FTC Settlement Over Hidden Fees

Travel app Hopper agreed to pay $35 million to settle allegations brought by the Federal Trade Commission (FTC) concerning deceptive business practices. The FTC accused Hopper of employing "dark patterns" – user interface designs intended to trick users – to obscure additional fees and misrepresent the value of its services to customers. These alleged deceptive practices involved making it difficult for consumers to understand the true cost of bookings and the specific benefits associated with add-on services.

The settlement resolves claims that Hopper misled consumers regarding the pricing and features of its travel booking services. Specifically, the FTC cited instances where Hopper allegedly failed to clearly disclose the full cost of flights and accommodations, and misrepresented the advantages of optional services such as "price freeze" or "travel protection" plans. The company's app design reportedly made it challenging for users to opt-out of these services or to fully comprehend their terms and conditions before completing a purchase.

As part of the settlement, Hopper is prohibited from engaging in similar deceptive practices in the future. The company must also provide clear and conspicuous disclosures regarding all fees and the terms of its services. The FTC's action underscores a broader regulatory focus on digital marketplaces and the need for transparency in online transactions, particularly within the travel industry where complex pricing structures and optional add-ons are common. The $35 million penalty is intended to serve as a deterrent and compensate for consumer harm.