Hopper, a prominent Canadian travel booking app, has agreed to a $35 million settlement with the US Federal Trade Commission after being accused of charging hidden fees and misrepresenting total prices to customers.
- Hopper fined $35M USD over hidden fees in US app
- FTC cites deceptive 'dark patterns' in fee disclosure
- Settlement excludes Hopper’s B2B business, which drives most revenue
What happened
The US Federal Trade Commission filed a complaint against Canadian travel app Hopper, accusing it of using deceptive practices by charging consumers hidden fees that were not clearly disclosed. These fees primarily involved pre-selected charges for tipping and VIP support services, which the FTC said misled users about the total cost of bookings.
Hopper agreed to settle the lawsuit by paying $35 million USD. The company stated that these issues stemmed from policies put in place during the COVID-19 pandemic and have since been discontinued by mid-2023. The settlement requires Hopper and its US subsidiary to more clearly disclose all fees and total payment amounts for future transactions.
Why it matters
This case highlights increased regulatory scrutiny on digital platforms that use design choices—known as dark patterns—to obscure fees and prompt users to incur unintended costs. The FTC has been intensifying enforcement against such practices since 2021, aiming to improve transparency and fairness in consumer transactions.
For Hopper, the settlement brings closure to a costly legal dispute and allows the company to focus on its evolving business model, where over 90% of revenue now comes from enterprise clients rather than individual consumers. The case also serves as a warning to other tech startups, particularly those in travel and e-commerce, about the risks of insufficient fee disclosure.
What to watch next
Observers will be looking to see if this settlement influences regulatory approaches in Canada, where similar deceptive practices, including dark patterns, are governed under the Competition Act. While the Canadian Competition Bureau has acknowledged awareness of the FTC case, it has not confirmed any investigation into Hopper.
Additionally, the broader tech and travel sectors may adopt clearer, more user-friendly pricing disclosures in response to growing enforcement pressures. Hopper’s shift toward B2B services may also prompt related startups to consider how regulatory challenges in consumer-facing apps could impact their business strategies and compliance priorities.