New York City targets undisclosed rental car fees

New York City authorities have launched a major enforcement initiative against rental car companies to combat undisclosed “junk fees” and deceptive pricing practices. Following a months-long review of consumer complaints, the Department of Consumer and Worker Protection (DCWP) conducted 62 inspections between May and July, resulting in 56 citations for alleged violations of city consumer protection laws.

Investigations revealed that many establishments failed to provide clear, upfront pricing or adequately disclose additional costs such as refueling, insurance add-ons, roadside assistance, and administrative surcharges. Many businesses also failed to visibly display refund policies or required information regarding reservations.

Under city regulations, rental agencies must clearly state the minimum rental cost and any conditions that could alter the final price. Companies are also required to honor reservations within 30 minutes of the agreed time and provide comparable alternative vehicles if the requested model is unavailable. The DCWP has begun issuing violations and warning letters to ensure compliance with transparency requirements.