On July 2, 2026, the Federal Trade Commission (“FTC”) announced that Hopper (USA), Inc. and its Canadian parent, Hopper Inc., agreed to a $35 million settlement resolving allegations that Hopper engaged in unfair and deceptive fee practices in violation of Section 5 of the FTC Act and the Trade Regulation Rule on Unfair or Deceptive Fees (“Fees Rule”). Specifically, the FTC alleged that Hopper unfairly charged consumers by burying certain fees in its purchase flow, failed to disclose material information about an optional tip that was pre-selected to be charged, and misrepresented the benefits of its VIP Support and Price Freeze products. The settlement requires consumer redress but does not impose civil penalties.
According to the FTC’s complaint, Hopper operates mobile apps that allow consumers to book airfare, short-term rentals, and rental cars from third parties. Hopper also sells add-on services including “Price Freeze” and “VIP Support,” that it advertises as providing pricing flexibility and priority customer service.
The FTC alleges Hopper violated Section 5 of the FTC Act by:
- Charging consumers “Tip” and VIP Support fees without their knowledge or express informed consent. Despite advertising that its product had “No Hidden Fees,” Hopper allegedly charged consumers hidden, preselected fees for “Tip” and “VIP Support” without their express informed consent. From 2020 to late 2023, Hopper’s booking flow displayed a “Total” price and a “Swipe to Book” button, but consumers who swiped right to purchase without scrolling down were unknowingly charged additional preselected fees hidden below the visible screen. In late 2023, Hopper allegedly moved the fees “above the fold” but continued to present them as preselected.
- Failure to disclose material information about the “Tip.” In 2023, Hopper moved the Tip to a post-purchase screen with pre-populated options of $1, $5, and $9—but no $0 option and no clear disclosure that consumers could decline by pressing a small “X” in the corner.
- Misrepresentations about VIP Support and Price Freeze. Hopper represented that VIP Support would guarantee customer service “instantly” or within 5–10 minutes, when consumers allegedly often could not reach support at all. As to Price Freeze, Hopper claimed consumers could “lock in” a travel price but failed to disclose that the feature only protects against increases up to a cap ($300 per traveler) and only if the booking remains available. Hopper also continued to market the Price Freeze fee as a “deposit” even after switching to a non-refundable fee model.
The complaint relies extensively on internal communications and testing of user interfaces (UX) to support its allegations that Hopper recognized its fee practices were deceptive. The complaint also quotes extensively from consumer complaints about unauthorized and hidden fees that the company received to bolster its allegations.
The complaint also asserts violations of the Fees Rule, which took effect on May 12, 2025 and prohibits unfair or deceptive practices involving fees for live-event tickets and short-term lodging, including failing to clearly and conspicuously disclose the “total price” wherever price is displayed and misrepresenting the nature, purpose, amount, or refundability of any fee.
Specifically, the complaint alleges that Hopper violated Section 464.2(c) of the Fees Rule by failing to clearly and conspicuously disclose at the end of the purchase flow for short-term lodging bookings that consumers could decline to pay the Tip or pay $0.
Under the stipulated order, Hopper is subject to injunctive provisions governing its fee practices. The order, among other things, requires Hopper to obtain consumers’ Express Informed Consent before imposing any fee or charge; prohibits misrepresenting any fee as a “tip,” “deposit,” or non-booking fee, and misrepresenting material attributes of its travel bookings or add-on products; mandates clear, conspicuous, and prominent disclosure of the Total Price in any offer, display, or advertisement, and requires Hopper to automatically refund fees imposed in connection with refunded, returned, cancelled, or uncompleted transactions, absent a clear and conspicuous non-refundability disclosure. The FTC also ordered Hopper to pay $35 million, which will be used for consumer redress.