New York City Mayor Zohran Mamdani has announced a crackdown on "junk fees" in hotels across New York City and beyond, banning the practice of sneaking in extra charges often described as "destination fees" or "resort fees."
The new rule, which goes into effect February 21, requires hotel operators to disclose all mandatory fees, including credit card holds and deposits. This move is part of Mamdani's ongoing efforts to crack down on deceptive business practices, targeting hidden or unexplained fees in areas such as gym memberships, concert tickets, and magazine subscriptions.
According to officials, nearly 300 complaints were received last year related to hidden hotel fees or unexpected credit card holds, which this new rule aims to address. California and Massachusetts have similar laws that require hotels to disclose mandatory fees.
The ban applies not only to hotels in New York City but also to businesses located outside the city that advertise prices to New Yorkers. Mamdani cited tourists planning to visit the city for the 2026 FIFA World Cup as an example of those who would benefit from this new rule, with an estimated 1 million visitors expected in the tristate area.
The move has been praised by consumer protection officials and hotel workers, including Rich Maroko, the president of the Hotel and Gaming Trades Council. Maroko called it a "showdown" against corporate lawbreakers, while also acknowledging the potential for some industry pushback.
Mamdani's stance on economic justice over economic development has raised concerns in the business community. However, he emphasized that his crackdown on deceptive pricing practices is meant to support businesses that operate within the rules, rather than solely punishing those that do not.
The new rule, which goes into effect February 21, requires hotel operators to disclose all mandatory fees, including credit card holds and deposits. This move is part of Mamdani's ongoing efforts to crack down on deceptive business practices, targeting hidden or unexplained fees in areas such as gym memberships, concert tickets, and magazine subscriptions.
According to officials, nearly 300 complaints were received last year related to hidden hotel fees or unexpected credit card holds, which this new rule aims to address. California and Massachusetts have similar laws that require hotels to disclose mandatory fees.
The ban applies not only to hotels in New York City but also to businesses located outside the city that advertise prices to New Yorkers. Mamdani cited tourists planning to visit the city for the 2026 FIFA World Cup as an example of those who would benefit from this new rule, with an estimated 1 million visitors expected in the tristate area.
The move has been praised by consumer protection officials and hotel workers, including Rich Maroko, the president of the Hotel and Gaming Trades Council. Maroko called it a "showdown" against corporate lawbreakers, while also acknowledging the potential for some industry pushback.
Mamdani's stance on economic justice over economic development has raised concerns in the business community. However, he emphasized that his crackdown on deceptive pricing practices is meant to support businesses that operate within the rules, rather than solely punishing those that do not.