The American media has never demonstrated much of an ability to confront junk fees in the travel industry with much strength or clarity.
Take the New York Daily News headline from Wednesday, Jan. 21: Mamdani announces ban on NYC hotels adding ‘junk fees’ to cost of stay.
We wish! But no, not really.
Let’s mythbust this clicky news story to explain what’s really going on.
New York City did not ban junk fees.
The Mamdani administration did make an announcement about junk fees, and the rule goes into effect Feb. 21, 2026.
But even after the rule comes into force, hotels will still be able to carve off portions of the cost, pretend they’re surcharges, and tag them with whatever ridiculous label they want.
The rule change is that hotels will not be able to keep those fees hidden anymore. They must be disclosed up front, from the start.
Basically, New York City has amplified a Federal Trade Commission rule announced in 2024.
There’s no sleight of hand here. New York’s new leaders admit that’s what they have done, explaining in a news release, “DCWP [the Department of Consumer and Worker Protection] proposed a rule modeled on a Federal Trade Commission (FTC) rule that makes it a deceptive trade practice under the City’s Consumer Protection Law to offer, display or advertise a price for a hotel without clearly and conspicuously disclosing the total price of the stay, including all mandatory fees.”
It would be wonderful if our leaders actually did ban junk fees. They’re deceptive, they alienate international visitors, and they cost communities because the fees are often taxed at a lower rate than the room tariff is.
California’s governor, Gavin Newsom, signed a similar law for his state back in 2023. (California’s law includes restaurants and bars with hidden fees, too, while New York City’s newly announced rules do not.)
So far, few politicians have had the cojones to ban these fees outright. That would apparently be too much of a challenge to the hotel industry lobby. Forcing the fees out into the open represents as much courage as our protectors can muster so far.
The new rule was formulated before Mamdani was elected.
This rule has the support of the Mamdani administration, but the current mayor’s team did not formulate the regulation. Public comments for the proposed rule closed Sept. 22, 2025, weeks before the recent mayoral election.
Hotels that break the new rules will be fined $525 to $3,500 per infraction, per city documents. That penalty structure was formulated well before the election as well.
Enforcement will be handled by the city’s consumer protection authority under laws governing deceptive trade practices.
Credit card holds and deposits by hotels are also being regulated.
“Many hotels also issue unexpected credit card holds or deposits with misleading terms. In 2025, DCWP received over 300 complaints from consumers related to hidden hotel fees or unexpected holds,” the mayor’s office said in a statement.
Once again, that practice is not being banned. But hotels will be forced to explain any credit card holds in detail from the very start of any transaction.
The city’s official documentation states that a hotel must provide a “disclosure regarding any hold placed on, or deposit taken from, a credit or debit card in connection with the stay at such hotel, explaining the amount of that hold or deposit, any reasons the hotel may keep part or all of the hold or deposit, and the time by which such hold or deposit shall be refunded.”
The rule covers New Yorkers who travel to other states, too.
This is the the most groundbreaking part of what New York City has done, and it will be fascinating to see how this aspect unfolds.
The wording of the new rules states that they apply “to any person who offers, displays or advertises the price of a stay in a hotel in New York City,” which would be expected.
But the protections extend as well to “any person who offers, displays or advertises the price of a stay in a hotel to a New York City consumer” (emphasis added).
That would mean that if you are a New York City resident, the city’s consumer protection forces would be willing to go to bat for you if a hotel in another state attempts to hide mandatory fees or deposit demands from you.
Mamdani’s remarks affirmed the concept that the new restrictions will travel across state borders for New York residents.
“I speak of the hidden fees that plague New Yorkers’ lives any time they have the audacity to book a hotel room, not only when they’re in our city, but when they’re booking that room from here for wherever they’re traveling around the country,” Mamdani said during the announcement at the Whitney Museum.
“This final rule delivers on affordability—for New Yorkers traveling across the country to see the World Cup, and visitors who want to experience our incredible city,” DCWP Commissioner Sam Levine said at the same event.
It remains to be seen how eager New York City’s government will be in pursuing out-of-state penalties, or how successful the city will be in enforcing the rule. But it’s exciting to see a powerful U.S. government entity bare its teeth at this destructive and anti-hospitality hospitality trend.
The battle against resort fees—a battle that pretty much every American traveler is hungry for—is heating up. Grab your popcorn.
