New York has joined Minnesota, Virginia, Colorado, Massachusetts, Connecticut, and other states in enforcing hidden fee bans to ensure travel pricing transparency across the U.S. starting this year. This collective effort to tackle deceptive pricing practices comes as consumers have increasingly demanded clearer, all-inclusive prices, especially in sectors like hotels, airlines, and event ticketing. The growing trend of “drip pricing”—where mandatory fees are added at checkout—has led to frustration and distrust among travelers. By passing new legislation, these states aim to ensure that travelers see the full price upfront, including all mandatory service fees, and avoid unexpected costs at the point of purchase. As states like New York and California lead the charge, this movement is expected to influence others to follow suit, creating a more transparent and consumer-friendly travel industry across the nation.
New York City: Tackling Hidden Hotel Fees in the Big Apple
New York City is taking a bold step to increase price transparency with the introduction of a Junk Fee Ban, effective February 21, 2026. This legislation specifically targets the hotel industry, making it a deceptive trade practice to advertise a room rate without including mandatory fees such as resort, destination, or “urban” fees. The law aims to reduce the confusion and frustration that travelers often face when they discover hidden fees at the checkout stage. Penalties for non-compliance range from $525 for a first violation, scaling up to $3,500 for repeat offenders.
The law reflects the city’s commitment to protecting tourists, many of whom rely on transparent pricing when planning trips. As one of the top global tourist destinations, New York’s initiative is expected to influence other U.S. cities and states to follow suit. The impact of this law will likely lead to increased consumer confidence and encourage more international visitors to book with the assurance of clear, upfront pricing.
| State | Effective Date | Key Details |
|---|---|---|
| New York City | February 21, 2026 | Bans advertising room rates without including mandatory fees (e.g., resort, destination) in the hotel industry. |
Minnesota: Embracing Price Transparency in Travel and Ticketing
Minnesota is moving forward with a new “Honest Pricing” law effective January 1, 2025, which will require businesses to include all mandatory fees in the “total price” of any service, including hotels and event ticketing. This law, however, excludes taxes and government fees, but it will significantly impact industries where hidden charges have long been prevalent. By banning hidden fees, Minnesota aims to improve transparency for consumers, allowing them to make informed purchasing decisions without the shock of additional charges at checkout.
The law will target several industries, including travel, hospitality, and entertainment. For example, hotels will no longer be able to advertise room rates without including resort fees or cleaning charges. Similarly, the ticketing industry will be impacted, requiring all event and travel fees to be included in the initial price presented to consumers. This is expected to reduce confusion and dissatisfaction among consumers, ultimately leading to greater trust in Minnesota’s businesses and improving the overall customer experience.
| State | Effective Date | Key Details |
|---|---|---|
| Minnesota | January 1, 2025 | Requires all mandatory fees to be included in the “total price,” excluding taxes and government fees. |
Massachusetts: The Bay State Joins the Price Transparency Movement
Massachusetts is set to join the ranks of states prioritizing price transparency with a new law slated to take effect in March 2025. This law will require all businesses to disclose the total price upfront, including mandatory service fees. Massachusetts’ Attorney General’s office will be tasked with enforcing this regulation, ensuring that service providers in industries like hospitality, travel, and ticketing adhere to the new rules. This shift is designed to combat “drip pricing” tactics, where additional charges are added at the checkout stage, leading to confusion and frustration for consumers.
As a state known for its high tourism rate, particularly in cities like Boston, the new regulation will provide a significant benefit to travelers who often face unexpected fees at hotels, restaurants, and attractions. With this change, Massachusetts aims to foster a more transparent and consumer-friendly market, giving residents and visitors alike the peace of mind that the price they see is the price they’ll pay. Additionally, this law is expected to set a standard for neighboring states as they consider similar measures to protect consumers.
| State | Effective Date | Key Details |
|---|---|---|
| Massachusetts | March 2025 | Requires upfront disclosure of total price, including mandatory service fees, enforced by Attorney General. |
Virginia: Strong Consumer Protection Against Hidden Fees
Virginia is tackling hidden fees with broad consumer protection measures scheduled to take effect on July 1, 2025. The state has introduced new legislation that will require full price disclosure upfront in sectors like travel and digital services, which are notorious for adding extra charges at checkout. The law will ensure that businesses cannot advertise a base price for services such as hotel rooms, tickets, or airline flights without including all mandatory fees, like resort or facility charges.
As travel demand continues to rise, Virginia’s law will make it easier for consumers to understand the true cost of services before committing to a purchase. This law is part of Virginia’s broader effort to combat deceptive marketing practices and ensure that businesses treat their customers fairly. With the implementation of this measure, consumers will benefit from clearer pricing, enabling them to make better-informed decisions and reducing the surprise of additional charges. The state’s focus on protecting consumers aligns with ongoing national trends toward greater transparency in the marketplace.
| State | Effective Date | Key Details |
|---|---|---|
| Virginia | July 1, 2025 | Requires full price disclosure, including mandatory service fees, for travel, digital services, and more. |
Colorado: Leading the Charge for Cross-Industry Price Transparency
Colorado has rolled out its price transparency law effective January 1, 2026, designed to ban “drip pricing” across multiple industries. This law requires that all mandatory fees be included in the initial advertised price, not just at checkout. By adopting a comprehensive approach similar to California’s law, Colorado aims to provide clarity for consumers in sectors such as travel, retail, and entertainment. The law will especially impact the hotel industry, where hidden fees often inflate the price of accommodation.
Colorado’s move comes as part of the state’s ongoing efforts to ensure that consumers are fully aware of the costs they will incur when booking services. With tourism and outdoor activities being a significant part of Colorado’s economy, the new law will help to protect both locals and visitors from unexpected costs. By enhancing price transparency, Colorado will foster a more competitive market where consumers are not misled by hidden charges, strengthening consumer trust in the state’s business practices.
| State | Effective Date | Key Details |
|---|---|---|
| Colorado | January 1, 2026 | Cross-industry ban focusing on price transparency, requiring all mandatory fees to be included in the initial advertised price. |
Connecticut: Strengthening Transparency with New Fee Regulations
Connecticut is set to implement SB 3, a law that will require businesses to include all mandatory fees in the advertised price, effective July 1, 2026. This includes service fees, resort fees, and other hidden charges that often catch consumers off guard. The law reflects Connecticut’s push for clearer pricing, particularly in industries like travel, event ticketing, and hospitality, where hidden fees are common. The new law aims to protect consumers by ensuring they know the full cost of a service before committing to a purchase.
As a state with significant tourism, particularly in areas like Hartford and New Haven, Connecticut’s move to ban hidden fees will have a substantial impact on both residents and visitors. This is part of a broader trend in the U.S. where more states are introducing similar laws to ensure that consumers are not misled by deceptive pricing practices. The law is expected to improve customer satisfaction and reduce the frustration often associated with “drip pricing” practices.
| State | Effective Date | Key Details |
|---|---|---|
| Connecticut | July 1, 2026 | Requires all mandatory fees to be included in the advertised price, aimed at eliminating hidden charges. |
California: Leading the Charge in Junk Fee Transparency
California is set to take significant steps toward price transparency with the introduction of SB 478, which will become effective on July 1, 2024. Dubbed the “Gold Standard,” this law bans the use of “drip pricing” across most industries, requiring businesses to disclose all mandatory fees in the advertised price upfront. This includes travel and hotel services, where hidden resort fees or destination fees will need to be clearly included in the advertised rate. While restaurants were later granted a slight carve-out to list surcharges separately, they must still ensure these charges are communicated transparently to customers.
California’s law will set a precedent for the rest of the country, especially in its approach to eliminating the practice of adding hidden fees at the point of sale. The state has long been at the forefront of consumer protection, and this law strengthens California’s reputation as a leader in ensuring fair pricing and consumer rights. As businesses begin to comply with this regulation, customers will benefit from more predictable costs and a reduction in deceptive pricing practices, particularly in the hospitality and travel industries.
| State | Effective Date | Key Details |
|---|---|---|
| California | July 1, 2024 | Bans “drip pricing” across industries, requiring all mandatory fees to be included in the advertised price. |
Impact of Junk Fee Bans on Travel Industry in Affected States
The introduction of Junk Fee Bans in California, New York City, Colorado, Massachusetts, and Virginia will dramatically alter the travel industry, particularly in sectors such as hotels, ticketing, and airlines. These states are pushing for full price transparency, requiring that all mandatory fees, like resort, destination, and facility fees, be included in the initial advertised price. This change aims to eliminate the common issue of hidden charges that often catch travelers off guard at checkout, creating a more predictable cost structure for consumers.
For example, California’s SB 478 will enforce this ban across most industries, setting a high standard for price transparency. New York City’s junk fee ban targets hotels, requiring full price disclosure of all charges upfront. Colorado’s and Massachusetts’s laws mirror California’s approach, while Virginia’s legislation expands consumer protection to digital services and travel-related industries. These new regulations will result in more informed decision-making for consumers and push the travel industry to rethink their pricing models, leading to better customer satisfaction and improved trust.
| State | Effective Date | Key Details |
|---|---|---|
| California | July 1, 2024 | Bans “drip pricing” across industries, requiring all mandatory fees to be included in the advertised price. |
| New York City | February 21, 2026 | Bans advertising room rates without including mandatory fees in the hotel industry (e.g., resort, destination fees). |
| Colorado | January 1, 2026 | Cross-industry ban requiring all mandatory fees to be included in the initial advertised price. |
| Massachusetts | March 2025 | Requires upfront disclosure of total price, including mandatory service fees, enforced by Attorney General. |
| Virginia | July 1, 2025 | Requires full price disclosure, including mandatory service fees, for travel, digital services, and more. |
New York joins Minnesota, Virginia, Colorado, Massachusetts, Connecticut, and other states in enforcing hidden fee bans to ensure travel pricing transparency across the U.S. starting this year, aiming to eliminate surprise fees and create clearer pricing for travelers.
Conclusion
New York joins Minnesota, Virginia, Colorado, Massachusetts, Connecticut, and other states in enforcing hidden fee bans to ensure travel pricing transparency across the U.S. starting this year. This collective movement aims to address the growing consumer demand for clear, upfront pricing, particularly in sectors like hotels, airlines, and ticketing. By eliminating deceptive practices such as “drip pricing,” these states are fostering a more transparent travel experience, allowing consumers to make informed decisions without hidden costs at checkout. As more states follow suit, the broader travel industry will likely adapt, creating a fairer, more predictable pricing structure for all travelers. These changes signal a positive shift toward consumer protection and trust, ensuring that the travel industry remains competitive, fair, and more accessible for everyone.
The post New York Joins Minnesota, Virginia, Colorado, Massachusetts, Connecticut, and Others in Enforcing Hidden Fee Bans to Ensure Travel Pricing Transparency Across the US Starting This Year: Everything You Need To Know appeared first on Travel And Tour World.
