Mamdani Administration Implements Nation-Leading Transparency Requirements for Hotels and Subscription Services
The Mamdani administration has implemented the strongest consumer protections for hotel stays in the United States, banning hidden fees and surprise credit card holds while requiring hotels to disclose total costs before purchase. These requirements take effect one month from their announcement, giving hotels time to adjust their systems while demonstrating the administration’s commitment to transparency and consumer protection.
National First: All-In Pricing Requirements
The all-in pricing requirement is the first of its kind in the nation. Hotels must disclose the full amount customers will pay, including all taxes and fees, before customers complete their purchase. This eliminates the surprise of adding 20, 30, or even 40 percent to the advertised base rate through hidden resort fees and miscellaneous charges.
No More Surprise Credit Holds
The orders also crack down on surprise credit card holds and deposits. Hotels can no longer place large holds on customer credit cards during check-in without explicit advance notification and consent. This practice has victimized travelers who discovered their credit cards declined for subsequent purchases because the hotel had frozen substantial amounts as damage deposits or incidental holds.
Industry Support
Surprisingly, the rules have drawn support from hotels that operate transparently. The administration noted that hotels advertising prices transparently are actually undercut by competitors who use hidden fee schemes to appear cheaper until the final transaction.
Labor Support
Hotel workers have strongly supported the transparency rules. Frontline workers have historically been forced to absorb customer anger over fees they have no control over, damaging customer relationships and worker morale. The rules make clear to customers that transparent-pricing hotels are not charging unfairlycompetitors are.
Subscription Cancellation Reforms
The second executive order fights subscription tricks and traps that quietly drain money from customer accounts. Many subscription services deliberately hide cancellation options behind confusing interfaces, require phone calls to cancel, or send cancellation confirmations to email addresses customers never check.
Design Trick Prohibition
The orders prohibit design tricks that mislead customers about their subscription status or make cancellation difficult. Services must provide simple, obvious cancellation options equivalent to how customers sign up. If signing up took one click, canceling must also take approximately one click.
Broader Consumer Protection Philosophy
These orders reflect the Mamdani administration’s philosophy that consumer protection serves both consumers and ethical businesses. Ethical businesses that operate fairly are harmed when competitors use deceptive practices. Transparency benefits honest market actors.
DCWP Enforcement and Monitoring
The Department of Consumer and Worker Protection (DCWP) will monitor compliance through compliance investigations and consumer complaint analysis. The agency will pursue enforcement against businesses that violate the new rules. Learn more about NYC consumer protection, federal consumer protection, and subscription rights.
