The operators of the Hopper travel app will pay $35 million to resolve federal allegations of deceptive pricing, the Federal Trade Commission announced.
The FTC's complaint centers on claims that Hopper concealed fees from consumers and misrepresented the total prices they would actually pay. The agency also alleged that Hopper charged fees without obtaining consumer consent, a practice the FTC said generated millions of dollars for the company.
Two of Hopper's add-on services drew specific scrutiny. According to the Federal Trade Commission, Hopper misrepresented the benefits of both its VIP Support service and its Price Freeze service, leaving consumers with a distorted picture of what they were purchasing.
The FTC said the conduct was particularly at odds with Hopper's own marketing. The company had promoted itself using a "no hidden fees" promise, yet the agency's complaint alleges Hopper earned millions by doing precisely what that promise said it would not do.
Under the terms of the settlement, the Federal Trade Commission said Hopper is barred from deceiving consumers about fees going forward. The $35 million payment resolves the agency's allegations without a court judgment on the underlying claims.