Mamdani Bans Hidden Hotel Fees and Credit Card Holds in NYC

Key Points

• New York City will require hotels to disclose all mandatory fees and credit card hold terms upfront, starting February 21.
• The rule expands on the federal FTC requirement by also covering credit card holds and is expected to save consumers over $46 million annually.
• Enforcement will target smaller and independent hotels, with fines starting at $525, as part of a broader campaign against unfair pricing practices.

Summary

New York City has announced new regulations that ban hidden hotel fees and require upfront disclosure of all mandatory charges and credit card hold terms, starting February 21. This local rule builds on a federal FTC mandate but goes further by addressing unexpected credit card holds, a common source of consumer frustration. While major hotel chains are largely in compliance, the new law targets smaller and independent hotels, with city enforcement and fines for violations. The initiative is part of a wider campaign by Mayor Mamdani to tackle unfair pricing practices across the travel sector.