NEW YORK—The new Mamdani administration in New York has issued a final rule banning hotels across the city and country from charging consumers hidden junk fees, which it said are often “mislabeled” as “destination fees,” “resort fees,” or “hospitality service fees,” as well as unexpected credit card holds or deposits, that cheat consumers and hurt honest small businesses.
During an event, Mayor Zohran Mamdani and city leaders announced the new rule and said it will protect both consumers coming to New York City, as well New Yorkers traveling elsewhere around the country. The Mamdami administration said that some economists estimate that banning hotel junk fees will save consumers more than $46 million in 2026.
The junk fee prohibitions of the final rule go into effect in New York City on Feb. 21, 2026.
‘Not the Price You Pay’
In announcing the new policy, the mayor’s office said in a statement, “When you book a room, the price you see is often not the price you pay. Many hotels utilize ‘junk fees,’ advertising a base room rate and only later revealing additional mandatory charges that make it harder for consumers to understand the true overall cost. Many hotels also issue unexpected credit card holds or deposits with misleading terms.”
The city said that in 2025 it had received over 300 complaints from consumers related to hidden hotel fees or unexpected holds.
FTC Rule is Model
To address this problem, the city proposed a rule modeled on a Federal Trade Commission (FTC) rule that it said makes it a deceptive trade practice under the City’s Consumer Protection Law to offer, display or advertise a price for a hotel without clearly and conspicuously disclosing the total price of the stay, including all mandatory fees.
The new rule goes a step further than the FTC’s rule requiring transparency on mandatory credit card holds or deposits taken as well, the city said.
