Mayor Mamdani Cracks Down on Hidden Fees at Rental Car Companies

 

56 summonses issued across 62 inspections in DCWP’s first citywide car rental sweep in a decade  

Mayor Zohran Kwame Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine today announced the results of a citywide enforcement sweep of car rental businesses. Between May and July, DCWP conducted 62 inspections and issued 56 summonses for violations of the City’s Consumer Protection Law, marking the agency’s first comprehensive review of the industry in roughly a decade.

“New Yorkers and visitors renting a car should know exactly what they’ll pay before they drive off the lot,” said Mayor Mamdani. “Working people shouldn’t have to worry about hidden costs being tacked onto the price they were promised. This administration will hold businesses accountable when they try to profit from confusion.”

“Hidden fees and undisclosed policies are a tax on working people who are already stretched thin,” said Deputy Mayor for Economic Justice Julie Su. “DCWP’s enforcement sends a clear message that this administration will not let businesses surprise New Yorkers with costs they weren’t told about.”

Inspectors found that most businesses failed to post required price signs or disclose prices as required, and many lacked a posted refund policy. DCWP is continuing to review the inspection results and will pursue further enforcement against businesses that remain out of compliance.

“When you rent a car, you deserve to know the price and the policy up front,” said DCWP Commissioner Samuel A.A. Levine. “This sweep makes clear that businesses need to disclose their prices and policies or face consequences.”

Car rental agencies in New York City must:

• Honor all reservations within one-half hour of the reserved time at the reserved price, unless the consumer is told in advance that the reservation is not guaranteed.
• Post a sign explaining the Consumer Protection Law’s rule on rental car reservations, including how to file a complaint.
• Provide a car that seats as many passengers and meets the consumer’s needs if the reserved car is unavailable.
• Disclose prices to consumers, including the minimum rental price and any conditions that affect it.

New York City’s Consumer Protection Law prohibits unfair trade practices in the sale of consumer goods and services, including false advertising, phony sales and special offers with hidden conditions.

DCWP urges consumers with a car rental complaint to file at nyc.gov/Consumers.