NYC DCWP Files Lawsuit Against Self-Storage Company for Alleged Predatory Practices

On February 10, 2026, the New York City Department of Consumer and Worker Protection announced that it filed filing a lawsuit against a national publicly-traded self-storage company that operates approximately 60 locations across New York City.

According to DCWP, after reviewing more than 100 complaints the agency’s investigation found that the company “consistently fails to provide the quality of services it advertises and uses predatory practices that exploit consumers and violate NYC’s Consumer Protection Law.”  To address the company’s alleged illegal bait-and-switch scheme, DCWP is seeking to hold the company accountable for its alleged misconduct in New York by pursuing restitution for aggrieved consumers and civil penalties for thousands of violations of City law.

This is the first lawsuit DCWP is bringing against a self-storage company.

“This lawsuit aims to shut down [the company’s] deceptive bait-and-switch scheme, recover full restitution for consumers, and send a clear message to the self-storage industry that exploiting New Yorkers comes with serious consequences,” said Commissioner and DCWP attorney Sam Levine. “This Fee Free February and every month, false advertisements, hidden late fees, other and predatory practices are on our radar. The era of exploiting New Yorkers is over.”

“For too long, self-storage companies like Extra Space have used deceptive tactics to lure New Yorkers in with low introductory rates, only to jack up prices and hit them with hidden fees. This kind of behavior drains consumers’ wallets and undermines affordability in our city,” said Deputy Mayor for Economic Justice Julie Su. “This administration is committed to rooting out corporate greed wherever it appears, and I commend Commissioner Levine and DCWP for taking bold action by filing this lawsuit.”

“It’s time for storage companies like [the company] to face accountability for exploiting hard-working New Yorkers,” said New York City Council Speaker Julie Menin. “Many New Yorkers rely on self-storage as a necessary solution to limited living space or sudden changes to their living situations. They deserve storage facilities whose services are transparent, reliable, and fully compliant with our city’s laws. I thank Commissioner Levine for his leadership in pursuing real accountability and protecting New Yorkers from future exploitation.”

“[The company] is the subject of over 100 complaints by New Yorkers fed up with their bait-and-switch pricing, unsanitary conditions, and threats to auction off customers’ belongings if they refuse to pay junk fees and other bogus charges,” said New York City Council Member Harvey Epstein. “The DCWP’s lawsuit sends a clear message: deception and exploitation will not be tolerated. As Chair of the Consumer and Worker Protection Committee, I am proud to support DCWP in their fight to ensure honest pricing and a commitment to quality services for all New Yorkers.”

Case Details

According to the DCWP, the company advertises affordable, clean, and convenient self-storage services.  However, once the consumer moves in with their belongings, the company allegedly “quickly and often dramatically raises the price, all while failing to adequately maintain their facilities.”  As set forth in the complaint, “once consumers are drawn in by promises of cheap and affordable prices for clean and sanitary storage units, they move their belongings in, only to later discover that [the company’s] “facilities seem more appropriate for a setting of a horror movie than to keep consumers’ valuables safe; consumers have reported widespread vermin infestations, water damage, and mold.”

The company also allegedly engages in a myriad of other predatory practices, including:

• Precipitously raising prices with little to no notice.
• Changing consumers’ locks to deny them access to their belongings
• Charging additional previously undisclosed junk “late fees” for allegedly delayed payment
• Threatening to auction off consumers’ belongings unless the consumer pays the entirety of the unexpected charges and fees.

According to the agency, “there are more than 300 self-storage—or “mini storage”—facilities in New York City alone.  [The company] holds the distinction of receiving more complaints than any other self-storage provider in New York City.”  Consult an experienced FTC and DCWP compliance attorney if your company is the subject of legal regulatory scrutiny.

In recent years, DCWP has seen an increase in consumer complaints against self-storage companies.  Consumers are often specifically targeted by these companies due to New York City’s notoriously small living spaces with limited room for storage.

The self-storage industry at large has increasingly relied on predatory bait-and-switch practices over the last several years, the DCWP states.  “In fact, during DCWP’s investigation, several consumers stated that they were aware of the bait-and-switch tactics endemic to the self-storage industry, and these concerns were specifically assuaged by [company] representatives that it was “‘not like’ other self-storage companies who would increase prices without warning.”

Because these practices, which involve arbitrary and astronomical rate increases within very short time frames, have grown more pervasive, the New York City Council determined that the Department should begin licensing this industry.  Under Local Law 171 of 2025, which becomes effective on August 25, 2026, all self-storage facilities in New York City will need to be licensed by DCWP.

DCWP Actions to Crack Down on Junk Fees 

Following Executive Order 09, DCWP has led a citywide crackdown on junk fees that inflate prices for consumers and undercut honest businesses.  In January 2026, DCWP issued a final rule prohibiting hotels from imposing excessive charges often disguised as “destination fees” or “resort fees,” as well as hidden holds on credit cards.

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.