NEW YORK (AP) — New York City on Wednesday finalized rules banning hotels from charging hidden fees and imposing unexpected credit card holds, a move city officials said will increase transparency for travelers and save consumers millions of dollars.
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Mayor Zohran Kwame Mamdani announced the measure alongside Sam Levine, saying the rule prohibits so-called “junk fees” often labeled as destination, resort or service charges, as well as undisclosed credit card holds or deposits.
The rule, issued by the city’s Department of Consumer and Worker Protection, takes effect Feb. 21. City officials said DCWP received hundreds of complaints in 2025 related to hidden hotel fees and unexpected holds.
Under the new regulation, hotels must clearly disclose the total price of a stay — including all mandatory fees — when advertising or offering rooms. The rule also requires transparency around any credit card holds or deposits, going beyond similar federal standards.
City officials said the policy is modeled in part on guidance from the Federal Trade Commission and is expected to save consumers more than $40 million in 2026, according to economic estimates cited by the administration.
Mamdani said travelers “deserve to know how much a hotel costs up front,” while Levine said the city would use its enforcement authority to ensure compliance. Hotels in New York City are already subject to additional consumer and worker protection laws, including requirements to disclose service disruptions and limits on subcontracting.
The administration said the hotel rule builds on broader efforts to curb deceptive pricing practices across the city.
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