New York City Mayor Implements New Policy Prohibiting Hotels from Implementing Additional Fees

Mayor Zohran Mamdani of New York City has recently implemented a significant policy prohibiting hotels from charging concealed “junk fees” and from imposing unexpected credit card holds. Effective February 21, 2026, this policy mandates that all mandatory charges, such as resort or amenity fees, be explicitly included in the initial advertised price. This measure prohibits adding such charges at checkout, safeguarding consumers from deceptive pricing and unexpected credit card charges. This landmark regulation, promulgated by Mayor Mamdani’s administration, promotes transparency. Violations of this rule result in penalties, and its application extends broadly to bookings advertised within New York City, even for accommodations outside the city limits.

While this policy appears beneficial for consumers, it raises constitutional concerns under the commerce clause, some argue. On the other hand, Mayor Mamdani’s administration is enforcing the requirement that all mandatory charges be explicitly included in the upfront price consumers see when booking. This includes resort fees, destination fees, and hospitality service fees. In 2025, New York City’s Department of Consumer and Worker Protection (DCWP) received numerous complaints regarding hidden fees and unexpected credit card holds. Economists estimate that this rule could result in substantial savings for consumers, exceeding $46 million in 2026, by eliminating misleading charges. The objective is to establish clear and transparent hotel pricing, ensuring that visitors and residents are fully informed of the total cost upfront, as it should be. However, implementing this policy raises constitutional issues. This New York City rule is based on a similar Federal Trade Commission regulation that mandates businesses to disclose the total price upfront for hotel stays and other services. Nevertheless, New York’s rule extends this requirement to include clear disclosure of credit card holds and deposits, which can surprise consumers after booking. This policy could influence other cities or states considering their own “transparent pricing” laws, particularly given the widespread use of similar booking platforms across the travel industry. Discussions in online forums and among travelers suggest that individuals desire this level of clarity not only for hotels but also for airlines, short-term rentals (such as Airbnb), and event tickets.