Hopper, the travel app known for its AI-based flight and hotel price predictions, has agreed to a $35 million settlement following a lawsuit filed by the US Federal Trade Commission (FTC). The lawsuit accused the company of misleading users by imposing hidden fees and misrepresenting the total costs of Hopper’s services.

The case is another example of regulators targeting the use of “dark patterns” or interface designs that manipulate users into making decisions they otherwise would not have made, including those that hide charges, preselect optional add-ons or make it difficult to understand the true cost of a service. It follows similar FTC settlements targeting other companies, including Match, StubHub, neobank Dave, Fortnite and others.

The FTC alleged that Hopper misled consumers regarding the benefits of its “VIP Support” and “Price Freeze” services. Many users were led to believe that these features would improve their booking experience, only to be faced with additional costs and limited access to customer support.

The FTC also found that users were charged “tipping” and VIP support fees that were presented as optional, but were often pre-selected and hidden within the app’s interface. As a result, users faced charges they believed they had not consented to, as these fees were typically only visible when users scrolled down the app screen.

The allegations extend to the “Freeze Price” or “Hold Room” offer, which Hopper said would allow consumers to lock the price of their travel reservation for a designated period. However, the FTC notes that the app did not clearly communicate the restrictions associated with this service. For example, Price Freeze only guarantees the rate up to a specific limit and only if the reservation remains available.

The settlement amount will be used for “consumer compensation,” and Hopper is now prohibited from misrepresenting any pricing structure, according to today’s statement. Hopper is required to clearly disclose all fees, ensuring that users are fully aware of the total cost of any transaction before completing their bookings.

“We decided to settle because the claims at issue are outdated and unrelated to our business,” a company spokesperson said in a statement provided to TechCrunch. “Continuing years of litigation over outdated and trivial issues would distract us from our current clients and partners… The settlement amount does not reflect the merit of the claims. It reflects our decision to move forward.”

The spokesperson added that after reviewing millions of company files dating back to 2021, the FTC’s allegations focused on “primarily outdated display practices implemented during the pandemic, limited to the Hopper app, and discontinued by Hopper in mid-2023, prior to the start of the FTC investigation.”

Before Hopper, the FTC’s most recent crackdown on “junk fees” was the case of StubHub, which agreed to pay $10 million to customers and change ticket prices. Booking Holdings reached a $9.5 million settlement following a lawsuit from Texas Attorney General Ken Paxton, who claimed it misled customers by showing them low room rates while hiding important fees until the checkout process.

Hopper launched its travel app in 2014 and surpassed 120 million downloads worldwide in 2024.

This story was updated with a statement from Hopper.