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New York City Finalizes Rule To End Hidden Hotel Fees and Require Upfront Pricing

The policy extends to any lodging advertised to New Yorkers, including outside the city.

Overview

  • Mayor Zohran Mamdani and the Department of Consumer and Worker Protection announced a final rule that takes effect Feb. 21 and targets deceptive hotel pricing.
  • Hotels and other lodging must display the full nontax price up front and cannot add undisclosed mandatory charges such as resort or destination fees.
  • Any credit card hold or deposit must be disclosed before booking, including the amount, purpose, how long the hold lasts, and when refunds are issued.
  • The rule carries per-day civil penalties starting at $525 for a first violation and rising to $3,500 for a third and subsequent offense, with DCWP monitoring ads and taking public complaints.
  • City officials cited roughly 300 consumer complaints in 2025 and estimate consumer savings in 2026 to exceed $40 million, with support voiced by the Hotel Association of New York and the hotel workers union.