The New York City government on Wednesday banned hotels from across the city and the country from charging hidden junk fees. These fees are often disguised as “destination fees,” “resort fees,” or “hospitality service fees.” The final rule also bans unexpected credit card holds or deposits that mislead consumers and hurt honest small businesses.
Mayor Zohran Mamdani joined Department of Consumer and Worker Protection Commissioner Sam Levine, along with business, consumer and labor leaders to announce the rule, which is designed to protect both visitors to New York City and residents traveling elsewhere in the U.S. Economists estimate the ban could save consumers more than $46 million in 2026. The rule’s junk fee prohibitions take effect in New York City on Feb. 21.
Hotel pricing is often misleading because the advertised rate is not the final price. Many hotels advertise a base room rate and only reveal mandatory additional charges later, making it difficult for consumers to understand the total cost, officials said. Hotels also frequently place unexpected credit card holds or require deposits under unclear terms. In 2025, the Department of Consumer and Worker Protection received over 300 complaints about hidden hotel fees or unexpected holds.
“Whether you’re visiting the five boroughs for the World Cup or leaving our city for a well-deserved vacation, you deserve to know how much a hotel costs up front. This new rule will ensure that New Yorkers and visitors alike are not stuck paying hidden hotel fees and will instead save millions of dollars each year,” Mamdani said in a statement.
To tackle this problem, DCWP proposed a rule modeled on an Fedtral Trade Comission rule that makes it a deceptive trade practice to advertise a hotel price without clearly disclosing the total cost of the stay, including all mandatory fees. The new rule goes further by also requiring transparency on mandatory credit card holds or deposits.
The announcement builds on broader efforts by the Mamdani administration to hold companies accountable and protect New Yorkers from deceptive business practices. The administration has issued executive orders targeting citywide junk fees and subscription traps and created a Citywide Junk Fee Task Force aimed at predatory companies.
“This final rule delivers on affordability—for New Yorkers traveling across the country to see the World Cup, and visitors who want to experience our incredible city,” said Levine. “DCWP will use its full enforcement authority to ensure hotels comply with the laws and rules of our city and we will be vigilant to ensure consumers have transparency in their transactions and that workers’ rights are respected.”
Hotels in New York City must also follow other consumer and worker protections, including the Hotel Service Disruption Act, which requires consumers to be notified of service changes during their stay, and the Safe Hotels Act, which bans illegal subcontracting. Together, these laws aim to ensure the city’s hotel industry remains transparent with consumers and compliant with leading worker protections.
