Economic Liberties Applauds New York City’s Crackdown on Hotel Junk Fee
New York, NY – Following a final rule announced by the Mamdani Administration yesterday to ban hotels across New York City and the country from charging consumers hidden junk fees, requiring transparent, all-in pricing for hotel stays marketed to New York City consumers, the American Economic Liberties Project released the following statement.
“This is exactly what real consumer protection looks like,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Hidden hotel fees are designed to confuse people at the point of purchase and quietly drive up prices, while hurting honest businesses and competition. New York City’s rule puts an end to that gamesmanship by requiring businesses to tell the truth up front about what a stay actually costs.”
Yesterday, Mayor Zohran Mamdani and the Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine announced the final hotel pricing rule, which will take effect in one month. The rule authorizes DCWP to enforce all-in pricing, requires hotels to clearly disclose the amount and terms of any deposits or holds associated with a stay, and prohibits misleading fees such as so-called “resort” or “destination” fees.
Importantly, the rule applies not only to hotels located in New York City, but to any hotel that offers, displays, or advertises prices to New York City consumers, closing loopholes that have allowed deceptive pricing to persist across online booking platforms.
For years, junk fees have distorted prices across the travel and hospitality industry, leaving consumers with little choice but to pay charges disclosed only after they have invested time, made plans, or committed to a booking.
“Families shouldn’t need a calculator or a law degree to book a hotel room,” Garofalo added. “By enforcing all-in pricing and banning deceptive fees, New York City is showing that high prices are not just inevitable. Other cities and states should follow this lead.”
Learn more about the fight to end junk fees here.
Learn more about Economic Liberties here.
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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; international trade arrangements that promote balanced trade and benefit workers, farmers and small businesses; and wealth is broadly distributed to support equitable political power.