Mamdani Administration Bans Hotel Hidden Fees and Unexpected Credit Card Holds

Video Description

Mayor Zohran Mamdani joined Commissioner Sam Levine and business, consumer and labor leaders to announce DCWP’s final rule banning hidden junk fees and unexpected credit card holds on hotel stays, ensuring transparency for consumers and saving millions of dollars overall. In 2025, the City’s DCWP received hundreds of complaints from consumers related to hidden hotel fees or unexpected holds. NEW YORK, NY – TODAY, the Mamdani administration issued a final rule banning hotels across the city and country from charging consumers hidden junk fees—often mislabeled as “destination fees,” “resort fees,” or “hospitality service fees”—as well as unexpected credit card holds or deposits, that cheat consumers and hurt honest small businesses. Mayor Zohran Mamdani joined Commissioner Sam Levine and business, consumer and labor leaders to announce DCWP’s final rule banning junk fees on hotel stays. This rule will protect both consumers coming to New York City, and New Yorkers traveling elsewhere around the country. Some economists estimate that banning hotel junk fees will save consumers more than $46 million in 2026. The junk fee prohibitions of the final rule go into effect in New York City on February 21, 2026. When you book a room, the price you see is often not the price you pay. Many hotels utilize “junk fees,” advertising a base room rate and only later revealing additional mandatory charges that make it harder for consumers to understand the true overall cost. Many hotels also issue unexpected credit card holds or deposits with misleading terms. In 2025, DCWP received over 300 complaints from consumers related to hidden hotel fees or unexpected holds. To address this problem, DCWP proposed a rule modeled on a Federal Trade Commission (FTC) rule that makes it a deceptive trade practice under the City’s Consumer Protection Law to offer, display or advertise a price for a hotel without clearly and conspicuously disclosing the total price of the stay, including all mandatory fees. The new rule goes a step further than the FTC's rule requiring transparency on mandatory credit card holds or deposits taken as well. Today’s announcement builds on the work the Mamdani Administration is doing to hold companies accountable and protect New Yorkers from deceptive practices, including issuing two Executive Orders that crack down on citywide junk fees and subscription traps, and creating a Citywide Junk Fee Task Force to target predatory companies. Hotels in New York City are also required to comply with other key consumer and worker protections, including the Hotel Service Disruption Act, which requires that consumers be notified of changes to service during their stay, and the Safe Hotels Act, which prohibits illegal subcontracting at hotels. Together these laws ensure that the city’s hotel industry is transparent with its consumers and compliant with nation-leading workers’ rights requirements. The Whitney Museum of American Art, Susan and John Hess Family Theater 99 Gansevoort St, New York, NY 10014 January 21, 2026