Hopper and related companies are accused of deceiving consumers with hidden fees and misleading claims about pricing and service benefits in their travel booking apps.
The companies operating Hopper travel apps agreed to pay $35 million and accept prohibitions on future misrepresentations to settle Federal Trade Commission (FTC) allegations.
The FTC alleges that Hopper unfairly charged hidden fees without consent, misrepresented total prices, and overstated benefits of VIP Support and Price Freeze services, generating millions in revenue.
Hopper enables consumers to search and book airfares, lodging and rental cars through its apps. The FTC alleges that until mid-2023, consumers who were ready to purchase a booking were taken to a display screen with the “total price” and a “Swipe to Book” button that failed to disclose that the company would add charges for Tip and VIP Support fees.
The FTC also alleges that consumers could not easily avoid the “optional” fees because they were pre-selected and would only appear if customers scrolled down the page.
The regulator also accuses Hopper of misleading customers about what they would receive after paying for VIP Support.
According to the FTC, Hopper told users the paid service would give them near-immediate access to customer service, including support “instantly” or within a few minutes.
But regulators allege many customers who paid for VIP Support either could not reach an agent at all or were forced to wait for long periods of time.
The FTC also alleges that Hopper misled users about its “Price Freeze” service, also known as “Hold the Room.”
Hopper allegedly marketed the feature as a way for customers to lock in the advertised price of a travel booking for a limited period of time, allowing them to complete the reservation later at the same rate. The company also allegedly told customers that the fee paid for Price Freeze would be credited toward the final cost of the booking.
But according to the regulator, Hopper did not clearly explain important limitations of the service.
The FTC alleges that the Price Freeze only covered price increases up to a certain amount and only worked if the booking remained available.
The complaint also alleges Hopper failed to apply the Price Freeze fee to the final booking cost as promised.
The settlement includes consumer redress payments and bans on misrepresentations of pricing or service benefits.
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