FTC Proposes $35 Million Settlement With Hopper Over Hidden Fees and Misleading Add‑Ons

The Federal Trade Commission said Thursday that travel app operator Hopper has agreed to a proposed $35 million settlement to resolve allegations that it used hidden, pre-selected fees and misleading claims to sell add-on products in its app checkout flow.

The case is a notable test of the FTC’s post-2025 crackdown on so-called junk fees in digital transactions. In announcing the deal, the agency said the settlement would return money to consumers and bar Hopper from deceptive fee practices, including failing to clearly disclose charges in the booking process.

The FTC filed a civil complaint and a stipulated proposed order in the U.S. District Court for the District of Massachusetts against Hopper Inc. and Hopper (USA), Inc. The complaint identifies Hopper Inc. as a Canadian company and Hopper (USA), Inc. as its Boston-based U.S. subsidiary.

According to the FTC, Hopper told consumers there were “no hidden fees” while charging pre-selected “Tip” and “VIP Support” fees without their express informed consent. The agency said the app displayed a “total price” and a “Swipe to Book” button even though those optional charges were not adequately disclosed and were visible only if users scrolled down in the checkout flow.

The FTC said Hopper had continued since 2023 to fail to clearly disclose that Tip fees were optional. The complaint also cites consumer complaints about the design of the checkout process, including one customer who 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 agency also pointed to internal company discussions. In one employee message quoted in the complaint, the employee wrote: “To me, the problem here is that we’re tricking users.”

Another major allegation centers on VIP Support, an add-on service that Hopper marketed as giving users faster customer help. The FTC said Hopper misrepresented those benefits by promising service “instantly” or within a few minutes when, according to the complaint, many users could not reach an agent at all or faced long waits.

The complaint also challenges Hopper’s “Price Freeze” product, sometimes called “Hold the Room.” The FTC alleges Hopper misled users by failing to clearly disclose important restrictions, including that any price protection was capped and depended on the room still being available to book later. The complaint further alleges that Hopper, at times, kept marketing Price Freeze as a deposit applied to the booking price even after the product had been changed in many cases to a nonrefundable fee.

The FTC said Hopper’s conduct violated Section 5 of the FTC Act, which bars unfair or deceptive acts or practices. For short-term lodging bookings made since May 12, 2025, the agency also alleged violations of the FTC’s Rule on Unfair or Deceptive Fees, which requires covered sellers to show the total price upfront and not misrepresent the nature or amount of fees.

Under the proposed order, Hopper must pay $35 million for consumer redress. It also must clearly and conspicuously disclose fees and charges, the total price and the final amount of payment for a transaction, and it is prohibited from misrepresenting fees.

“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 the agency’s release. “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 said the commission voted 2-0 to file the complaint and proposed order. The settlement remains a proposal: Hopper neither admits nor denies the allegations, except as stated in the order, and it will have the force of law only if approved by a federal judge.

Hopper’s mobile app lets users search for and book flights, lodging and rental cars. The FTC’s fees rule took effect May 12, 2025, applying to short-term lodging and live-event ticket sellers. This case stands out because it applies that price-transparency rule to an in-app travel checkout design.