Rental cars in a parking lot | Elwis Musa Tambuwun on Unsplash
NEW YORK — New York City is intensifying its campaign against junk fees, this time targeting rental car companies accused of burying consumers in undisclosed charges. Mayor Zohran Kwame Mamdani and the Department of Consumer and Worker Protection (DCWP) announced a sweeping enforcement initiative Wednesday aimed at eliminating hidden add‑ons that inflate the true cost of renting a vehicle in the five boroughs.
The crackdown follows a months‑long review of consumer complaints alleging surprise fees for refueling, insurance add‑ons, roadside assistance, and administrative surcharges that were not disclosed upfront. DCWP officials say the pattern mirrors junk‑fee behavior the administration has already confronted in towing, hospitality, and self‑storage industries.
“New Yorkers deserve to know exactly what they’re paying for — no surprises, no traps, no hidden charges,” Mayor Mamdani said in announcing the initiative. “Rental car companies have been quietly padding bills with fees that were never clearly disclosed. That ends now.”
Citywide Enforcement and New Disclosure Requirements
DCWP Commissioner Sam Levine said inspectors have already begun issuing violations to companies that fail to provide clear, upfront pricing. The agency is also sending warning letters to rental car operators across the city, reminding them of their legal obligations under New York City’s consumer protection laws.
Deputy Mayor for Economic Justice Julie Su emphasized that the crackdown is part of a broader strategy to restore fairness in consumer markets. “Hidden fees are a form of deception,” Su said. “When a company advertises one price and charges another, that’s not just misleading — it’s unlawful. We are making sure every rental car company in New York City follows the rules and respects the rights of consumers.”
Under the city’s Consumer Protection Law (Title 6, Chapter 5 of the Rules of the City of New York), businesses must disclose the total price of a transaction before a consumer agrees to pay. That includes mandatory fees, surcharges, and any conditions that could trigger additional charges. Failure to do so can result in civil penalties of up to $500 per violation, with higher fines for repeat offenders.
What Rental Car Companies Must Tell Consumers
The new enforcement push requires rental car companies to provide clear, written disclosures of all fees before a customer signs a rental agreement or completes an online reservation. This includes the base rental rate, taxes, airport concession fees, insurance charges, refueling fees, toll‑pass programs, late return penalties, and any administrative or processing fees.
DCWP officials say the disclosures must be presented in plain language, not buried in fine print or hidden behind hyperlinks. Companies must also explain optional services — such as supplemental liability insurance or roadside assistance — in a way that makes clear whether they are required or voluntary.
“Consumers should never have to guess what they’re being charged for,” Levine said. “If a company wants to charge a fee, they must tell you upfront, in writing, and in a way that any New Yorker can understand.”
The city is also requiring companies to provide itemized receipts at the end of each rental period, showing every charge applied to the transaction. This is intended to prevent companies from adding fees after the fact, a practice DCWP says has become increasingly common.
Industry Reaction and Consumer Impact
Several national rental car companies contacted by the city have pushed back, arguing that airports, insurers, or state regulations mandate many fees. But DCWP officials say that even when fees are unavoidable, companies must still disclose them clearly and prominently.
Consumer advocates applauded the crackdown, noting that rental car fees have become a major source of frustration for travelers. A recent DCWP analysis found that some New Yorkers were paying 20 to 40 percent more than the advertised price once hidden fees were added.
Mayor Mamdani said the enforcement effort is part of his administration’s broader campaign to eliminate junk fees across industries. “Whether it’s hotels, towing companies, or rental car agencies, the message is the same,” he said. “If you hide fees, if you mislead consumers, if you inflate prices with deceptive practices — we will hold you accountable.”
Part of a Larger Consumer Protection Agenda
The crackdown aligns with Executive Order 09, which directs DCWP to identify and eliminate junk fees citywide. Earlier this year, the administration finalized rules requiring self‑storage companies to disclose all mandatory charges and banning misleading “teaser rates” that balloon after the first month.
City officials say the rental car initiative will help ensure that New Yorkers — especially those renting vehicles for work, family emergencies, or travel — are protected from predatory pricing.
“Transparency is not optional,” Su said. “It’s the foundation of a fair marketplace. And in New York City, we will enforce it.”
