Canadians could cash in on new class action filed against travel website

Canadians could be part of a new class action filed against Hopper, a travel website for booking flights, hotels, and car rentals.

Hopper, which was founded in Montreal and has a Massachusetts-based subsidiary, is facing allegations of "misleading, deceptive, and unlawful" practices in a class-action lawsuit filed in the Superior Court of Quebec on July 7.

The Canadian lawsuit comes after Hopper agreed to pay US$35 million to settle allegations brought by the U.S. Federal Trade Commission that it charged hidden fees and misled consumers about the total cost of booking, as well as the benefits of paid features like VIP Support and Prize Freeze.

In an email statement, a representative addressed the U.S. settlement, stating, "The settlement amount does not reflect the merit of the claims. It reflects our decision to move forward."

The allegations

According to the court document filed in Quebec, Hopper is facing allegations that it misled Canadian customers by advertising lower prices than what they ended up paying.

In its marketing and advertising materials, the company promised "no hidden fees," yet had allegedly pre-selected the optional Tip and VIP Support fees that were easily missed by customers. As a result, the lawsuit claims that customers were charged "without free and informed consent."

It's also alleged that Hopper advertised a price for a round-trip flight, but when customers booked it, they were told that the price only applied to either the outbound or return flight, leading customers to pay more.

The lawsuit further alleges that Hopper displayed prices in Canadian dollars, or failed to clearly state the currency, but processed final payments in U.S. dollars, Euros, or another currency. It also alleges that customers who paid for the Price Freeze feature, which locks in fares advertised in Canadian dollars, were later charged a higher amount in U.S. dollars.

Hopper faces allegations of misleading customers about the benefits and limitations of its paid Prize Freeze feature, which lets users lock in an advertised fare for a limited time. According to the lawsuit, the fee customers paid for this feature was supposed to act as a deposit toward the total cost of the booking, but customers claim that it wasn't applied to the final price. The lawsuit also claims customers weren't clearly notified that the feature only protects the fare up to a certain amount and only if the booking is still available when they complete the purchase.

The proposed class action also alleges that Hopper profited from its VIP Support paid service, which turned out to be inadequate or non-existent.

As a result, Hopper is being accused of misleading practices, with the court document alleging that the company violated the Consumer Protection Act, as well as other consumer laws in different provinces and territories.

When asked about these allegations, a Hopper representative stated, "We do not comment on pending litigation."

Are you eligible?

Canadians could be part of the class action if they meet any of the eligibility criteria:

• Class 1: You used the Hopper app or website for a booking and paid fees for tip, VIP support, and/or Price Freeze services;
• Class 2: You used the app or website for a booking and ended up paying a higher price for a round-trip flight than initially advertised by Hopper;
• Class 3: You bought Prize Freeze to freeze a price listed in Canadian dollars, only to end up paying a higher price in U.S. dollars;
• Class 4: You paid for any type of booking on Hopper for a price advertised in Canadian dollars, with no indication as to currency, and were instead charged in U.S. dollars, Euros, or another currency.

How much could you receive?

As the proposed class action has yet to be approved by the court, the amount hasn't been specified. However, the lawsuit is seeking compensation and punitive damages on behalf of affected Canadians.

What should you do next?

For now, you don't have to do anything, but you can sign up on the class action website for updates or to join this proposed lawsuit.