The Federal Trade Commission announced a $35 million settlement with the companies behind the Hopper travel app over allegations of deceptive pricing and undisclosed fees.
The FTC charged that Hopper billed consumers fees they had not agreed to, and that the app misrepresented the total amounts customers would ultimately be required to pay. The commission also alleged that Hopper overstated the benefits of two paid services, VIP Support and Price Freeze, according to the Federal Trade Commission.
The FTC said the conduct was especially at odds with Hopper's own marketing. The app had promoted itself with a "no hidden fees" promise, yet the FTC's complaint alleges Hopper collected millions of dollars in revenue despite that pledge.
Under the terms of the settlement, the Federal Trade Commission said Hopper is barred from misleading consumers about the fees it charges. The prohibition covers any future misrepresentation of pricing or the value of its add-on services.
The $35 million payment resolves the FTC's case against the app's operators, who faced allegations that consumers were charged without their knowledge or consent.