New York City Mayor Zohran Mamdani is putting rental car companies on notice after a citywide crackdown uncovered widespread violations involving prices, refund policies and other required consumer disclosures.
Mamdani, 34, highlighted the results in an X post on Wednesday, August 26, noting that the city’s Department of Consumer and Worker Protection issued 56 summonses after conducting 62 inspections of rental car businesses between May and July.
“We swept NYC car rental businesses to see if they were clearly disclosing their prices and posting refund policies as our laws require — and that was the result,” he wrote.
NYC Consumer and Worker Protection/X
“Renting a car shouldn’t trap you in a maze of hidden fees and shady policies,” he shared on social media. “It’s simple: tell people the real price. Post your policies clearly. Or hear from @hellodcwp.”
According to an August 26 report published on New York City’s official website, the summonses were issued for violations of the city’s Consumer Protection Law as part of the agency’s first comprehensive review of the car rental industry in roughly a decade.
Per the report, inspectors found that most of the businesses failed to post required price signs or properly disclose prices, while many also failed to post their refund policies. DCWP is still reviewing the inspection results and said businesses that remain out of compliance could face additional enforcement.
“New Yorkers and visitors renting a car should know exactly what they’ll pay before they drive off the lot,” the mayor said, per the report. “Working people shouldn’t have to worry about hidden costs being tacked onto the price they were promised. This administration will hold businesses accountable when they try to profit from confusion.”
According to the report, under city rules, rental agencies must disclose prices, including the minimum rental price and any conditions that could affect it. They must also generally honor reservations within 30 minutes of the reserved time and at the agreed-upon price unless customers were warned in advance that the reservation was not guaranteed.
If the reserved vehicle isn’t available, companies are required to provide another vehicle that can accommodate the same number of passengers and meet the renter’s needs, per the report. Businesses must also display a sign explaining the city’s rules governing rental car reservations and how consumers can file complaints.
Per the report, the Consumer Protection Law prohibits unfair trade practices, including false advertising, phony sales and special offers that come with hidden conditions.
“Hidden fees and undisclosed policies are a tax on working people who are already stretched thin,” Deputy Mayor for Economic Justice Julie Su said, per the report. “DCWP’s enforcement sends a clear message that this administration will not let businesses surprise New Yorkers with costs they weren’t told about.”
DCWP Commissioner Samuel A.A. Levine offered a similar warning to companies that don’t follow the rules. “When you rent a car, you deserve to know the price and the policy up front,” Levine said, according to the report. “This sweep makes clear that businesses need to disclose their prices and policies or face consequences.”
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