AI-powered travel booking app Hopper has agreed to a $35 million settlement with the U.S. Federal Trade Commission (FTC) after regulators alleged the company used deceptive pricing practices and hidden charges within its mobile app.

The settlement follows an FTC investigation that claimed Hopper failed to clearly disclose optional fees and misrepresented the benefits of several premium booking services.

What Did the FTC Find?

According to the FTC, Hopper used interface designs that made certain optional charges appear mandatory or difficult to notice.

Investigators said some fees, including VIP Support and optional tips, were automatically selected or placed lower on the booking screen, making it easy for users to complete purchases without realizing additional costs had been added.

The FTC also raised concerns about Hopper’s Price Freeze feature, which allows travelers to lock a flight or hotel price for a limited time. Regulators said important restrictions and limitations were not explained clearly before customers paid for the service.

Company Must Improve Pricing Transparency

As part of the settlement, Hopper must clearly display all fees before customers complete a booking.

The FTC said the company can no longer advertise misleading prices or hide optional charges within its booking process. The settlement money will be used to compensate eligible consumers affected by the company’s pricing practices.

Hopper Responds

Hopper denied intentionally misleading customers and said the issues identified by regulators involved older versions of the app that were removed before the investigation officially began.

The company explained that settling the case allows it to focus on improving its products rather than spending years in court.

Hopper also noted that the settlement should not be viewed as an admission that the FTC’s allegations were accurate.

Growing Crackdown on Hidden Fees

The case is part of a wider effort by U.S. regulators to stop businesses from using “dark patterns” design techniques that influence users into making purchases or accepting charges they may not fully understand.

In recent years, several travel, ticketing, and digital service companies have faced similar enforcement actions over hidden fees and misleading pricing practices.

Why This Matters

Consumers are increasingly relying on AI-powered travel apps to find the best flight and hotel deals. Transparent pricing is essential for maintaining trust, especially as digital booking platforms continue to add premium services and optional features.

The FTC’s action sends a clear message that companies must clearly explain all charges before customers complete a purchase.

Read More on VitalStack

Enjoyed this article?

Subscribe for weekly deep-dives on AI and health — straight to your inbox.