Hopper and its affiliated companies will pay $35 million to resolve allegations of deceptive practices related to hidden fees, according to the Federal Trade Commission (FTC). The settlement comes after claims that Hopper misled customers regarding total prices and overstated the benefits of its services.
The FTC asserts that Hopper charged consumers hidden fees without their consent, resulting in significant revenue generation. Until mid-2023, customers attempting to book travel were presented with a total price that did not disclose additional charges for Tip and VIP Support fees. These optional fees were often pre-selected, making it difficult for consumers to avoid them.
Additionally, the FTC alleges that Hopper failed to deliver on its promises regarding VIP Support, claiming users would have near-instant access to customer service. Nonetheless, many customers reported long wait times or being unable to reach an agent altogether. Furthermore, the Price Freeze service, marketed as a guarantee to secure advertised prices, also fell short of expectations. The FTC found that important limitations were not clearly explained, and the fee for this service was not applied to the final booking cost as promised.
The $35 million settlement includes consumer redress and imposes restrictions on Hopper’s future marketing practices, ensuring that they do not misrepresent pricing or service benefits again.
This material is for informational purposes only and should not be considered financial advice.
