Cruciblethe travel app known for its AI-driven flight and hotel price predictions has agreed to a $35 million settlement following a lawsuit brought by the US Federal Trade Commission (FTC). The lawsuit accused the company of misleading users by charging hidden fees and misrepresenting the total cost 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 choices they wouldn’t have made, including those that hide fees, 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 about 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 for “Advice” and VIP support fees that were presented as optional but were often default and hidden in the app’s interface. As a result, users were faced with charges they believed they had not consented to, as these charges were typically only visible when users scrolled down the app screen.
The claims extend to the “Price Freeze” or “Reserve the Room” offer, which Hopper claimed would allow consumers to hold the price of their reservation for a set period. However, the FTC notes that the app failed to clearly communicate the limitations associated with this service. For example, a price freeze secures the price only up to a certain limit and only if the booking remains available.
The settlement amount is set to be used for “consumer restitution,” with Hopper now prohibited from falsifying any pricing structures, according to today’s announcement. Hopper is required to clearly disclose all charges, ensuring that users are fully aware of the total cost of any transactions before completing their bookings.
“We decided to settle because the claims at issue are outdated and have nothing to do with our business,” a company spokesperson said in a statement provided to TechCrunch. “Pursuing years of litigation over outdated, sticky issues would distract us from our current customers and partners… The settlement amount does not reflect the value of the claims. It reflects our decision to move forward.”
The spokesperson added that, after reviewing millions of company records dating back to 2021, the FTC’s allegations focused on “primarily antiquated display practices implemented during the pandemic, limited to the Hopper app, and discontinued by Hopper in mid-2023, before the FTC’s investigation began.”
Before Hopper, the FTC’s most recent crackdown on “junk fees” was her case StubHubwhich agreed to pay $10 million to customers and change its ticket prices. Participation Reservations settled for $9.5 million after being sued by Texas Attorney General Ken Paxton, who alleged it misled customers by showing low room rates while hiding significant fees until the checkout process.
Hopper launched its travel app in 2014, and it went beyond 120 million lifetime downloads worldwide in 2024.
This story has been updated with a statement from Hopper.
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