Proposed FTC-Hopper deal puts hotel-booking fees under scrutiny

The Federal Trade Commission announced a proposed $35 million settlement with travel app Hopper on July 2, 2026, over allegations that the company charged some fees without consumers’ express informed consent and misrepresented the limits or benefits of certain booking products.

The federal case matters to hotel and short-term-rental shoppers because the allegations involve the way lodging prices and add-ons are presented in an app. It also puts practical attention on the FTC’s existing Rule on Unfair or Deceptive Fees, which applies to hotels, vacation-rental platforms, travel agents and other online intermediaries that offer or advertise short-term lodging.

What the FTC alleges

In its complaint, the FTC alleges that Hopper presented Tip and VIP Support charges as optional even though the fees could be hidden, preselected or automatically added. The agency also alleges that Hopper’s marketing for its Price Freeze and Hold the Room products did not accurately explain their restrictions, conditions or benefits.

The FTC says those practices conflicted with representations that consumers would not face hidden fees. Hopper agreed to the proposed settlement without admitting or denying the allegations, according to Skift. The allegations have not been resolved by a final judgment.

What the proposed order would require

The proposed order would require Hopper to pay $35 million and stop misleading consumers about fees, total prices and the benefits or limits of its products. It also would require clearer presentation of pricing before consumers pay.

The $35 million should not be treated as money already distributed to consumers or as an automatic payment for everyone who used Hopper. The FTC case page lists the matter as pending in federal court. The case is FTC v. Hopper (USA), Inc. and Hopper Inc., civil action 1:26-cv-13058 in the U.S. District Court for the District of Massachusetts.

The rule behind the case

The FTC’s Rule on Unfair or Deceptive Fees took effect May 12, 2025. For short-term lodging, it generally requires a business that advertises a price to display upfront the total amount consumers will pay, including mandatory fees that the business knows about and can calculate in advance.

The rule covers more than hotel operators. It also applies to vacation-rental platforms, travel agents, online marketplaces and other intermediaries that offer, display or advertise short-term lodging, including through mobile apps.

Businesses may generally exclude only government charges, shipping charges and charges for genuinely optional ancillary goods or services from the initial total. Excluded charges must be clearly disclosed before the business asks for payment, including their nature, purpose and amount. The final amount of payment must then be displayed prominently before the transaction is completed.

An add-on is not necessarily optional simply because it carries that label. The FTC’s staff guidance says a fee may be treated as mandatory when it is automatically billed, preselected or difficult to decline. By contrast, a protection plan or other add-on can generally be excluded from the initial total when the consumer affirmatively chooses it rather than accepting a prechecked option.

What travelers should check

When booking a hotel or short-term rental, compare the first displayed total with the final payment screen. Look for resort, service, cleaning, protection or support charges, and check whether any add-on was selected by default.

Taxes and some other government charges may be excluded from the initial total, but the seller must identify and disclose them before asking for payment. The final amount should include those charges and any optional products the consumer added.

Travelers who believe a booking platform concealed or misrepresented fees can save the listing, checkout screens, receipt and cancellation terms, then report the experience through the FTC’s fraud-reporting channel. The Hopper matter does not create a new fee rule. Instead, it shows how the FTC is applying existing requirements to online lodging sales and alleged practices involving optional fees, total prices and product claims.

Sources

• FTC settlement announcement
• Skift hospitality-industry report