New York City and Beyond: Mayor Mamdani Cracks Down on Hotel "Junk Fees"
In a move aimed at protecting consumers, New York City Mayor Zohran Mamdani has announced a new rule that will prohibit hotels from charging sneaky extra fees, also known as "destination fees" or "resort fees." These hidden charges often catch tourists off guard and can add hundreds of dollars to their hotel bill.
Under the new rule, which takes effect on February 21, all hotels in New York City as well as those outside the city that advertise prices to New Yorkers will be required to disclose all mandatory fees upfront. This includes credit card holds and deposits, as well as other charges that are not included in the advertised price.
Mayor Mamdani's move is part of a broader effort to crack down on deceptive business practices, including hidden fees on gym memberships, concert tickets, and magazine subscriptions. The mayor has signed two executive orders targeting these types of fees and plans to continue cracking down on unfair pricing.
The ban on "junk fees" will apply not only to hotels in New York City but also to businesses located outside the city that advertise prices to New Yorkers. California and Massachusetts have similar laws, which demonstrate the growing trend towards consumer protection.
Tourists planning to visit New York City for the 2026 FIFA World Cup will be among the first to benefit from the new rule, with an estimated 1 million visitors expected to descend on the city. The city's Department of Consumer and Worker Protection has hailed the move as "the strongest hotel consumer protection anywhere in the country."
The hotel industry had been pushing back against the ban, but Mayor Mamdani remained steadfast in his commitment to protecting consumers. The mayor was joined at a press conference by Rich Maroko, president of the Hotel and Gaming Trades Council, who praised the mayor's efforts to go after "corporate lawbreakers." However, some observers have noted that the move may pose challenges for the mayor, particularly in navigating relationships with powerful unions whose interests may not always align with his own.
The new rule marks a shift towards economic justice over economic development, which has raised concerns in the business community. Mayor Mamdani argued that businesses following the rules should be heartened by the crackdown on deceptive pricing practices. "Today is not just to hold bad actors accountable," he said. "It's also to say to those who have been good actors that we see the work that you're doing."
In a move aimed at protecting consumers, New York City Mayor Zohran Mamdani has announced a new rule that will prohibit hotels from charging sneaky extra fees, also known as "destination fees" or "resort fees." These hidden charges often catch tourists off guard and can add hundreds of dollars to their hotel bill.
Under the new rule, which takes effect on February 21, all hotels in New York City as well as those outside the city that advertise prices to New Yorkers will be required to disclose all mandatory fees upfront. This includes credit card holds and deposits, as well as other charges that are not included in the advertised price.
Mayor Mamdani's move is part of a broader effort to crack down on deceptive business practices, including hidden fees on gym memberships, concert tickets, and magazine subscriptions. The mayor has signed two executive orders targeting these types of fees and plans to continue cracking down on unfair pricing.
The ban on "junk fees" will apply not only to hotels in New York City but also to businesses located outside the city that advertise prices to New Yorkers. California and Massachusetts have similar laws, which demonstrate the growing trend towards consumer protection.
Tourists planning to visit New York City for the 2026 FIFA World Cup will be among the first to benefit from the new rule, with an estimated 1 million visitors expected to descend on the city. The city's Department of Consumer and Worker Protection has hailed the move as "the strongest hotel consumer protection anywhere in the country."
The hotel industry had been pushing back against the ban, but Mayor Mamdani remained steadfast in his commitment to protecting consumers. The mayor was joined at a press conference by Rich Maroko, president of the Hotel and Gaming Trades Council, who praised the mayor's efforts to go after "corporate lawbreakers." However, some observers have noted that the move may pose challenges for the mayor, particularly in navigating relationships with powerful unions whose interests may not always align with his own.
The new rule marks a shift towards economic justice over economic development, which has raised concerns in the business community. Mayor Mamdani argued that businesses following the rules should be heartened by the crackdown on deceptive pricing practices. "Today is not just to hold bad actors accountable," he said. "It's also to say to those who have been good actors that we see the work that you're doing."