FTC says Hopper's hidden $85.6M fee toggle was flagged by its own tests

What's the deal? The US Federal Trade Commission has taken travel app Hopper to court over a pre-selected checkout toggle that regulators tied to $85.6 million in fees. The complaint centres on two charges — a "Tip" fee and a "VIP Support" fee — that the FTC says Hopper added to bookings without clear disclosure.

What does Hopper do? Launched in January 2014, Hopper is known for AI-driven flight and hotel price predictions that tell users when to buy. It has surpassed 120 million lifetime downloads worldwide and raised more than $700 million, making it one of the best-known names in travel tech.

What went wrong at checkout? Until mid-2023, users saw a "total price" and a "Swipe to Book" button that the FTC says failed to disclose the added charges. The optional fees were pre-selected and only appeared if consumers scrolled down. Most people never scrolled.

The internal evidence: The complaint alleges Hopper's own tests showed the design's effect. Where 15% of users paid a disclosed, unselected Tip fee, 75% paid it when it was hidden and pre-selected. In internal emails, employees described the practices as "tricking users" and "deceptive UX."

Not just the fees: The FTC also alleges Hopper misrepresented its Price Freeze and VIP Support products. The Price Freeze, first advertised as a refundable deposit, later became a non-refundable fee — yet Hopper kept calling it a "deposit," leaving 45% of consumers wrongly believing it would be refunded.

The signal: The case is another example of regulators targeting dark patterns — interface designs that steer users into choices they might not otherwise make by hiding charges or pre-selecting add-ons. For well-funded consumer apps, the message is that internal test data documenting the effect can become the regulator's strongest evidence.

Read more: gcn.com

Image credit: Generated with Gemini