New York City has finalized regulations prohibiting hotels from charging customers hidden, undisclosed or unexpected fees -- colloquially called "junk fees."
The city also is requiring transparency on credit card holds. The new rules take effect Feb. 21.
New York City mayor Zohran Mamdani announced the rules on Jan. 21.
The new rules, crafted by New York's Department of Consumer and Worker Protection, mirror a Federal Trade Commission regulation finalized in 2024 that requires hotels to display the total price, including all required fees, up front. NYC's version goes a step further by mandating clear disclosure of credit card holds or deposits.
Under the city rule, hotels must prominently display total pricing, inclusive of mandatory fees like "destination fees," "resort fees" or "hospitality service fees." Additionally, the rule prohibits hotels from misleading consumers about the nature of any fees via any offers, displays or advertisements.
In addition to disclosing all fees, the rule also requires hotels to disclose the final payment amount and details about credit card holds or deposits, including the amount, potential retention reasons and refund timeline for these holds before a consumer agrees to pay.