Hidden Fees: Hopper Settles FTC Charges for $35 Million

Leading travel booking application Hopper has reached a $35 million settlement with the U.S. Federal Trade Commission (FTC) over deceptive pricing practices targeting consumers. Announced on July 2, 2026, this decision resolves allegations related to the company's 'hidden fees' policy and represents a crucial part of the Biden-Harris administration's broader fight against 'junk fees'.

According to the FTC's complaint, Hopper imposed additional fees on consumers booking flights, hotels, and rental cars through its apps, which were hidden until the later stages of the purchase process. The company was accused of misleading consumers by applying pre-selected fees for 'tips' and VIP Support services. These charges were not visible unless users scrolled down the app screen, and the FTC noted that Hopper's own testing showed consumers would decline these fees if they were adequately disclosed. Furthermore, Hopper allegedly overstated the benefits of its add-on services like VIP Support and 'Price Freeze,' with promises of instant customer service and price protection often failing to materialize. Internal company communications even revealed employees flagging these tactics as deceptive. Hopper, however, stated that the FTC's allegations concerned former practices implemented during the COVID-19 pandemic and discontinued in mid-2023, asserting that its current app does not have such issues.

This development is viewed as part of the Biden-Harris administration's comprehensive campaign against 'junk fees' across various sectors. Since 2022, the administration has taken steps in areas such as banking, airlines, hospitality, and live event ticketing, saving consumers hundreds of millions of dollars. For instance, the U.S. Department of Transportation (DOT) implemented a rule requiring airlines to clearly disclose baggage, change, and cancellation fees upfront when purchasing tickets, potentially saving consumers over half a billion dollars annually. The Consumer Financial Protection Bureau (CFPB) has also contributed to billions in consumer savings by reducing unnecessary fees in the banking sector. Previously, companies like StubHub and Booking Holdings also reached settlements over similar hidden fee allegations.

The Biden administration's battle against 'junk fees' began in 2022 with an Executive Order from President Biden calling on federal agencies to reduce or eliminate hidden fees. The Federal Trade Commission (FTC), as part of this initiative, proposed a rule aiming to prohibit businesses from charging hidden and misleading fees and requiring them to display the full price upfront. These efforts have also led to increased legal risks at both federal and state levels against practices known as 'drip pricing,' where additional fees are not disclosed until the final stages of a transaction. States like California and Virginia have enacted laws mandating that advertised prices include all mandatory fees.

Analysts and market observers anticipate that such regulatory pressure will continue in the coming period. These consumer protection-focused measures are compelling companies to adopt an 'all-in pricing' model and enhance transparency. This will necessitate that firms operating in online travel, event ticketing, and hospitality sectors re-evaluate their business models and invest more in legal compliance. The goal for the future is for consumers to know the true cost of a service or product from the outset and avoid surprise fees, which has the potential to create a fairer competitive environment in the markets.