The Mamdani administration on Wednesday announced a sweeping new rule banning hidden “junk fees” and unexpected credit card holds in hotel bookings, marking a major win for transparency and consumer protection in New York City.
Mayor Zohran Mamdani joined Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine, along with business, consumer, and labor leaders, to unveil the final regulation, which prohibits hotels from charging undisclosed fees often labeled as “destination,” “resort,” or “hospitality service” charges. It also bans surprise credit card holds or deposits that consumers say have become increasingly common.
The DCWP received more than 300 complaints in 2025 related to such deceptive charges, which officials said obscure the real cost of hotel stays and often catch travelers off guard.
Under the new rule, hotels must include all mandatory fees in the advertised price of a room. The regulation, modeled after a Federal Trade Commission measure on “unfair or deceptive fees,” goes further by requiring transparency about credit card holds or deposits as well.
Economists estimate that eliminating hotel junk fees could save consumers more than $46 million in 2026. The new rule takes effect February 21, 2026, and applies to hotels both within New York City and nationwide that accept reservations from city residents.
“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,” Mayor Mamdani said in a statement. “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.”
Commissioner Levine said DCWP will rigorously enforce the measure. “We will be vigilant to ensure consumers have transparency in their transactions and that workers’ rights are respected,” he said.
The rule builds on a series of consumer protections introduced under the Mamdani administration, including executive orders targeting so-called citywide junk fees and subscription traps, and the creation of a Citywide Junk Fee Task Force.
New York hotels are also subject to existing worker and consumer laws, such as the Hotel Service Disruption Act—requiring hotels to notify guests of major service changes—and the Safe Hotels Act, which bans illegal subcontracting and strengthens worker protections.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
