New York City Bans Hidden Hotel Fees Under New Consumer Rule
New York City has finalized a sweeping new consumer protection rule that bans hidden hotel fees and unexpected credit card holds, marking a major shift in how hotel prices must be presented to travelers. The rule was announced this week by the NYC Department of Consumer and Worker Protection and targets charges commonly labeled as destination fees, resort fees, or hospitality service fees.
The announcement was made jointly by New York City Mayor Zohran Mamdani and DCWP Commissioner Sam Levine, alongside representatives from business, consumer advocacy and labor groups. City officials said the rule is designed to eliminate pricing practices that obscure the true cost of a hotel stay until late in the booking process or after arrival.
The final rule is modeled on a similar federal initiative from the Federal Trade Commission and will take effect in New York City on February 21, 2026. Once implemented, hotels will be required to clearly disclose the full price of a stay upfront, including all mandatory fees, and will be prohibited from placing unexpected credit card holds that are not adequately explained to guests in advance.
According to DCWP, the city received more than 300 consumer complaints in the past year alone related to hidden hotel fees and surprise charges. Officials say those complaints highlight a persistent problem that affects both residents and visitors, particularly in a global tourism hub like New York City.
Mayor Mamdani said the rule is intended to protect consumers whether they are visiting the city or traveling elsewhere. He emphasized that travelers deserve transparency when booking accommodations and should not face surprise charges that inflate the final bill. City officials estimate the rule could save consumers millions of dollars annually by eliminating deceptive pricing practices.
Commissioner Levine said the regulation is about affordability, transparency and accountability. He noted that DCWP will use its full enforcement authority to ensure hotel operators comply with the new requirements and that pricing practices align with city law. Levine also stressed that consumer transparency and worker protections will remain central priorities as the rule is enforced.
The ban on hidden hotel fees positions New York City among a growing number of jurisdictions moving to clamp down on so-called junk fees across travel, hospitality and other consumer-facing industries. For hotels operating in the city, the rule signals a clear expectation: pricing must be straightforward, fully disclosed and easy for consumers to understand before they book.
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