Mayor Mamdani Secures $1.7 Million from Extra Space for New York City Consumers

 

 DCWP enforcement action returns $1 million to consumers and establishes enhanced compliance terms on the self-storage company to protect New Yorkers’ property  

Mayor Zohran Kwame Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine today announced a $1.7 million settlement with Extra Space, one of the nation’s largest self-storage companies, resolving a landmark enforcement action over widespread violations of New York City’s Consumer Protection Law.

After DCWP sued the company in February 2026, alleging deceptive and exploitative business practices, Extra Space agreed to pay $1 million in restitution to harmed consumers and more than $700,000 in civil penalties, while accepting strict compliance terms that stop the company from luring consumers in with low prices only to raise rates excessively, from maintaining filthy storage units, and from seizing and auctioning off personal property without due process.

The settlement comes just weeks before New York City’s new self-storage licensing program takes effect, sending a clear message that self-storage companies seeking to do business in the city will be held to a higher standard.

“People pay Extra Space to protect the things that matter most to them, not to have those belongings neglected, held hostage or auctioned off,” said Mayor Mamdani. “This company — like others in this industry — lured New Yorkers in with low prices, jacked up prices, let units rot and took people's property when they couldn’t keep up. Today they’re paying $1.7 million, and every self-storage company in this city should take note: if you prey on New Yorkers, this administration will hold you accountable.”

“Storage units hold the things people can’t replace — family photos, a parent's belongings, whatever didn't fit when the walls closed in,” said Deputy Mayor for Economic Justice Julie Su. “Extra Space knew that and exploited that trust. This settlement gets New Yorkers their money back and puts real rules in place before this company touches another person's things.”

“An acute lack of square feet is a near-universal New York City struggle, and like many self-storage businesses, Extra Space preyed on that fact,” said DCWP Commissioner Samuel A.A. Levine. “Not only did this company rip customers off with bait-and-switch pricing and junk fees--they actually auctioned off people’s personal belongings after they protested the price increases. DCWP’s decisive enforcement action puts an end to this egregious conduct that consumers face from self-storage businesses, and provides direct monetary relief to people. Nothing can ever replace cherished family heirlooms. But the resolution of this case delivers economic justice to New Yorkers and sets the standard for the self-storage industry before licensing begins later this summer.”

Details of the Case

DCWP opened its investigation after receiving a surge of complaints about Extra Space and other self-storage operators. The agency reviewed more than 100 complaints against Extra Space and found that, beginning in 2023, the company engaged in widespread violations of New York City’s Consumer Protection Law, including:  

• False advertising: The company promised clean storage units despite renting units affected by vermin infestations, rodent droppings, water damage and mold.  
• Bait-and-switch pricing: Extra Space suddenly and steeply increased customers’ rates after move-in despite written assurances that it would provide 30 days' advance notice before raising prices. 
• Junk fees: Consumers were hit with arbitrary hidden fees, some of which the company continued charging customers after they canceled their contracts. 
• Wrongful lockouts and auctions: Extra Space denied customers access to their units and auctioned off personal belongings without due process in order from consumers who owed them money or had fallen behind on payment.  

Under the settlement, which has been filed with the court, Extra Space is prohibited from deceptively advertising prices or facility conditions and must implement stronger due process protections before restricting access to storage units or auctioning personal property. The company must also improve consumer service by establishing a relocation assistance program and providing adequate notice before raising prices.

Extra Space is just one self-storage operator among many in New York City. Consumer complaints about the self-storage industry have increased dramatically in recent years. New York City has more than 300 self-storage facilities, and Extra Space generated among the highest number of consumer complaints. As apartment sizes shrink and housing costs continue to rise, more New Yorkers rely on self-storage, making strong consumer protections increasingly important.

Beginning Aug. 25, 2026, Local Law 171 of 2025 will require every self-storage facility operating in New York City to obtain a DCWP license. The compliance measures required under this settlement establish a model for how companies must operate if they want to do business in the city. DCWP encourages consumers who believe they have been harmed by a self-storage operators to file a complaint, with supporting documentation when possible, at NYC.gov/Consumers.