FTC Secures $35 Million Settlement Over Hopper's Alleged Hidden Fees and Misleading Travel Services

Key Takeaways

• $35 Million Consumer Settlement: Hopper agreed to pay $35 million to resolve FTC allegations that it charged consumers undisclosed fees without informed consent and misrepresented aspects of its travel services.
• Hidden Optional Fees Alleged: The FTC alleges Hopper's pre-selected Tip and VIP Support charges were inadequately disclosed despite the company's "no hidden fees" marketing.
• Premium Service Claims Challenged: The agency alleges Hopper misrepresented the benefits of its VIP Support service and failed to clearly disclose important limitations of its Price Freeze offering.
• Transparency Requirements Imposed: Under the proposed order, Hopper must clearly disclose fees, total prices, and final payment amounts, and is prohibited from misrepresenting fees or charges.
• Unfair and Deceptive Fees Rule Implicated: The FTC alleges Hopper's conduct violated the FTC Act and, for certain short-term lodging bookings made since May 12, 2025, the FTC's Unfair and Deceptive Fees Rule.

Deep Dive

The Federal Trade Commission announced that Hopper has agreed to pay $35 million to settle allegations that they charged consumers fees without their informed consent while misleading users about the cost of bookings and the benefits of some of the company's paid services. The proposed settlement also bars the company from deceiving consumers about fees and requires it to clearly disclose the total price of goods and services, the fees and charges associated with them, and the final amount consumers will pay before completing a transaction.

The complaint reaches beyond a dispute over pricing. It describes a product design that, according to the FTC, encouraged consumers to pay for services they neither requested nor fully understood, even as Hopper publicly promised there were "no hidden fees."

Hopper built its business around making travel booking fast and intuitive. Consumers use the company's apps to search for and book flights, lodging and rental cars. According to the FTC, however, the experience changed at checkout. Until the middle of 2023, consumers preparing to complete a booking were shown a purchase screen displaying what Hopper called the "total price" alongside a "Swipe to Book" button.

The FTC alleges that this screen failed to adequately disclose that Tip and VIP Support charges would be added to the purchase. Those fees, while described as optional, were pre-selected by default and appeared only on a portion of the screen visible if a user scrolled down. The agency also alleges that Hopper has continued to fail to disclose that Tip fees are optional even after changes to its booking process in 2023.

According to the complaint, these practices generated millions of dollars in additional revenue for the company. Consumers, meanwhile, repeatedly complained they had been charged for services they never intended to purchase. One customer quoted in the complaint wrote, "I did not intend to buy the VIP support. Honestly it feels like ya'll snuck that in on the final screen at the bottom and opted me in."

The FTC argues these were not isolated misunderstandings. The complaint alleges Hopper's own internal testing showed that when Tip and VIP Support fees were adequately disclosed and left unselected by default, most consumers declined them.

Concerns From Inside the Company

The complaint does not rely solely on customer complaints. It also points to discussions among Hopper employees themselves. According to the FTC, numerous employees expressed concern internally about the company's fee practices. One employee, quoted in the complaint, summarized the concern bluntly: "To me, the problem here is that we're tricking users."

The inclusion of those internal communications gives the case a different texture. The FTC is not simply alleging that consumers found the interface confusing. It contends the company understood the effect its design choices were having and continued using them.

According to the complaint, Hopper misrepresented the benefits of its VIP Support service, which the company advertised as giving customers the ability to reach support "instantly" or within a few minutes. The FTC alleges many consumers who purchased the service were instead unable to reach a customer support agent at all or experienced substantial wait times. The complaint also challenges Hopper's marketing of its Price Freeze service, also known as "Hold the Room."

Hopper represented that consumers could pay a fee to hold or freeze an advertised travel price for a period of time, allowing them to book later at the same price, and that the Price Freeze fee would be applied toward the total cost of the booking. The FTC alleges, however, that Hopper failed to clearly disclose important limitations, including that the service protected prices only up to a certain amount and only if the booking remained available. The complaint further alleges the company did not apply the Price Freeze fee toward the booking cost as promised.

A Broader Push for Pricing Transparency

Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said the case reflects the Commission's continuing focus on pricing practices that obscure the true cost of a purchase.

"Hopper deceived consumers by showing them a total price that did not include hidden, pre-selected fees," Mufarrige said. "The Commission will continue to use all available tools to promote price transparency and to combat unfair and deceptive pricing, billing and cancellation practices."

The FTC alleges Hopper's conduct violated the FTC Act and, for short-term lodging bookings made since May 12, 2025, the agency's Unfair and Deceptive Fees Rule.

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