First, the nomenclature of the forbidden practices, then the names for the law, a summary of the latest events, and details of the final California Junk Fee Law. In this article, we will focus on the changes to the California Civil Code (CC), and particularly CC Section 1770) of the Consumer Legal Remedies Act (CC 1750, et eq.).
In the morning hours of June 25, 2024, the California Assembly unanimously approved Senate Bill 1534, an emergency response to the special interests of restaurants and labor (the California Restaurant Association and UNITE HERE), exempting any “restaurant, bar, food concession, grocery store or grocery delivery service” from application of the SB 478’s Honest Pricing Law that was passed in last year to become effective on July 1, 2024.
On June 11, 2024, the United States House of Representatives passed HR 6543, the so-called “No Hidden FEES Act of 2023” which introduces federal regulations aimed at enhancing transparency and fairness in the advertising of hotel room and short-term lodging prices. A critical component of this Act is its preemption clause, found in Section 4(a), which establishes a national standard prohibiting states from enforcing any laws that conflict with the federal mandate. This provision has significant implications for state regulations, such as California’s SB 478, which also aims to protect consumers from hidden fees in various transactions. The scope and application of this preemption clause are essential for assessing how state laws will be affected and ensuring compliance with the new federal standards.
Termination clauses in hotel management agreements (“HMAs”) are keenly negotiated by owners to ensure the liquidity of their investment. These usually include a termination provision in the event the operator underperforms, generally known as a performance test clause. How are these clauses challenged before the courts in France?
Mark S. Adams is the go-to senior lawyer in JMBM’s hospitality litigation team for assessing legal exposure, pursuing legitimate claims, and defending a client’s rights involving hospitality matters.
For more than 20 years consumers have complained about hidden mandatory fees, junk fees, resort fees, destination fees, service fees, administration fees, health fees, surcharges, connection fees, and similar charges, whatever they are called.
California businesses brace for Senate Bill 478‘s impact. SB 478 was signed by Governor Newsom in October 2023 and became effective July 1, 2024. It cracks down on hidden fees, often referred to as “junk fees” and “drip pricing” (because the full cost is only disclosed drip by drip). It will likely change how businesses approach pricing strategies. Many say it is part of a nationwide response to President Joe Biden’s call to eliminate Junk Fees.
On April 7, 2024, the United States House Committee on Energy and Commerce released the American Privacy Rights Act (APRA). While every Congress for more than a decade has introduced multiple proposals to address privacy rights on a national scale, none have gained traction, and while there’s every reason to suspect that the APRA will meet the same fate – headwinds are coming from the states that have already adopted comprehensive privacy statutes, and it is notoriously difficult to adopt legislation in an election year, and especially now), the APRA is being taken seriously, and might be the basis for a long-awaited, and long-needed, national privacy law.
The U.S. Federal Trade Commission’s recent decision to ban non-compete agreements marks a pivotal shift in employment regulations nationwide. This rule not only prohibits new agreements but also retroactively impacts existing ones. From its broad definition of “worker” to its exceptions and impending legal challenges, understanding the nuances of this rule is crucial for employers preparing for compliance. JMBM Partner Michael H. Strub, Jr. explains the implications of this landmark decision.
As leaders in the hospitality industry, we often embrace the mantra that "every day is different." It's a sentiment that resonates deeply with us, for our field encompasses a kaleidoscope of guests, round-the-clock operations, and the occasional curveball thrown our way. Yet, it is precisely what fuels our passion and challenges us to constantly adapt and innovate.
The last few years have been fraught with mergers and acquisitions in the hotel management space. Companies have grown larger and less personalized, more streamlined, increasingly technologically advanced, and geographically agnostic. The benefits of a large management company may seem obvious: efficiency and economies of scale, technology and innovation, specialized knowledge and resources, and distribution channel advantages, among others. However, when choosing a management company for your hotel, I encourage you to look beyond the seemingly obvious and evaluate whether a more personalized and strategic approach is appropriate for your hotel real estate investment goals. This article outlines the benefits of selecting a small management company for the day-to-day operation of your hotel.
Judicial Reference is a procedure similar in many ways to binding arbitration. For convenience, we may sometimes use the word “Reference” interchangeably with “Judicial Reference.”
While some companies in some industries have a tendency to consolidate and eliminate brands, the hotel industry is different. Most of the leading hotel companies with brands, such as Marriott, Hilton, IHG, Hyatt, and Accor, regularly acquire or create new brands or flags. Today, Marriott has 30 flags, Hilton has 22, IHG has 14, Hyatt has 29, and Accor has 40, and that’s just the tip of the iceberg. With so many flags to choose from, it’s easy to overlook another choice – no brand at all. While picking a brand is an obvious choice, the possibility that operating a hotel without a brand may be the better choice.
A recent spate of lawsuits from plaintiffs represented by Pacific Trial Attorneys has highlighted the need for businesses to ensure ADA compliance. In the below article, JMBM partner Stuart Tubis discusses the importance of website compliance, and how best to defend your business if there is liability.
Robin Zeidel spent four years in book publishing before following in her father’s footsteps by getting a law degree. When a Wall Street firm came knocking, Robin’s plans to join her father’s practice went by the wayside. She spent almost six years as assistant general counsel at Starwood before founding her firm, Zeidel and Associates, in 2010.
The French ad hoc mandate is a confidential procedure for the out-of-court settlement of disputes Its aim is to remedy a company’s financial situation before it is declared insolvent. The merits of ad hoc mandates , subject to the article L 611-3 of the French Commercial Code , are well established since these legal mechanisms have proved their worth in preventing and dealing with business difficulties.
Mark S. Adams is an experienced trial lawyer, partner, and senior member of JMBM’s Global Hospitality Group®. In his more than 14 years with the Firm, Mark has created an international reputation as a Hotel Dispute Lawyer, handling litigation, arbitration, jury trials, and alternate dispute resolution in hundreds of matters affecting hotels, resorts, restaurants, and other hospitality properties. But not every matter should, or does, end up in litigation. Mark also provides pre-litigation strategic advice to avoid litigation and optimize a client’s position for settlement where possible.
Mark S. Adams is an experienced trial lawyer, partner, and senior member of JMBM’s Global Hospitality Group®. In his more than 14 years with the Firm, Mark has created an international reputation as a Hotel Dispute Lawyer, handling litigation, arbitration and alternate dispute resolution in hundreds of matters affecting hotels, resorts, restaurants and other hospitality properties.
In October this year, California Governor Gavin Newsom signed into law (effective July 1, 2024) a sweeping ban on pricing goods and services without including all mandatory fees or charges.
In any hotel setting, there is an incredible amount of activity. Hotels are large business machines with lots of moving parts, so keeping an eye on every aspect is nearly impossible, including physical crimes that can take place onsite. The operations of hotels can differ based on levels of service, brand, size and more.