Pulse September 2024 | Page 16

ISPA TOWN HALL PANELISTS

TOWN HALL EXAMINES “ HIDDEN FEES STATUTE ”

California SB478 requires spas and other businesses to reveal fees , surcharges

ISPA TOWN HALL PANELISTS

LARA DAVIDSON General Manager Casa Palmero and The Spa at Pebble Beach
SUZANNE HOLBROOK Senior Corporate Director of Spa Operations Marriott International
JENNIFER HOLZWORTH Senior Corporate Director of Spa Operations Montage International
ROBERT VANCE Director of Spa and Wellness Solage , Auberge Resorts Collection
A NEW CALIFORNIA LAW with ramifications for the spa industry went into effect July 1 . Known as SB478 ( California Senate Bill 478 ) and nicknamed the “ Hidden Fees Statute ,” this law prohibits businesses from advertising a price lower than the actual price consumers will ultimately pay for a good or service . SB478 aims to increase transparency for consumers by eliminating mandatory charges and fees , such as service fees and surcharges .
During a special legislative session of the ISPA Town Hall in June , panelists shared insights , creative ideas and information about how ISPA member spas will track the changes — and their impact — resulting from this new legislation .
Information shared in the session reflects the opinions of members and should not be considered legal advice . ISPA advises members to consult with their legal counsel to understand how legislative changes will affect their business .
Ensuring service providers are not negatively affected “ We ’ re ensuring our therapists are whole and are taken care of ,” said Robert Vance . “ Unfortunately , we ’ re requiring a service charge now and we ’ re hoping this doesn ’ t negatively impact additional gratuities . The service charge is 100 percent distributed to staff .” Reflecting on the competing challenges of staff welfare and the guest experience , he continued ,“ It was a difficult decision , but we want to make sure our employees are taken care of , and we ’ re going to have to reeducate our clients on those prices .”
“ We likely won ’ t see a change ,” said Suzanne Holbrook .“ I think it will be a

“ The point of this law is to be transparent and have our guests know what to expect , and the more we can communicate that , the more successful we ’ ll be .”

— LARA DAVIDSON
14 PULSE n SEPTEMBER 2024