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