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3. Hotel Financing 2015: JMBM’s “preferred” EB-5 construction financing program for top developers and projects

4. The “new breed” of condominium hotels — Key to financing new hotel development? Selling condo hotels as “securities” under new SEC Rule 506(c) . .

5. Los Angeles is the new magnet for real estate investment

6. FAQs on “service animal” requirements of the ADA. What every hotelier needs to know. Why Uber was sued over service animals.

7. Why this may be the time to buy or sell a hotel management company

8. Hotel development & EB-5 financing: Why you don’t want to form your own regional center

9. Hotel Liability for Guest Information — What you need to know and how to avoid liability.

10. Hotel Franchise Lawyer: 8 things to negotiate in your next franchise agreement

11. Hotel Lawyer: The 5 questions every owner should ask before selecting a hotel brand

12. Hotel Franchise Lawyer: Hotel Franchise Agreements and the 5 biggest mistakes a hotel owner can make

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This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer. Please contact me at Jim Butler at jbutler@jmbm.com or 310.201.3526.

Published on:

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16 September 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Data Technology, Privacy & Security.

Artificial Intelligence is Checking into your Hotel – Are You Ready?

by Robert Braun, Co-Chair, JMBM Cybersecurity and Privacy Group;
Senior Member, JMBM Global Hospitality Group

Even though artificial intelligence has been a part of our lexicon for more than seventy years, artificial intelligence remains the latest bright shiny thing. Businesses large and small feel compelled to incorporate artificial intelligence into their company descriptions even with a limited understanding of what artificial intelligence is, or how it could help their business. Hotels and hotel companies are no different; just take a look at the online newsletters and announcements hitting your mailbox; it’s a rare day that a hotel company doesn’t announce that it is incorporating artificial intelligence into their business, whether to increase guest satisfaction, offer new services, improve reservations, or any of a variety of reasons.

While artificial intelligence can clearly help, jumping on the AI bandwagon can have unintended consequences.

What is Artificial Intelligence?

Most of us have an imperfect concept of artificial intelligence: we think that the title is descriptive of the product. However, artificial intelligence is not necessarily what it sounds like. IBM defines artificial intelligence as “technology that enables computers and machines to simulate human learning, comprehension, problem solving, decision making, creativity and autonomy.” But what most people think of as artificial intelligence is generative AI, technology that can create original text, images, video, and other content without human intervention.

Underlying this is a hard fact: artificial intelligence is highly technical and very difficult. As an expert in the field, Joseph Greenfield of Maryman and Associates told me, “To understand artificial intelligence, you understand neural networks.” I don’t understand neural networks – do you?

What are the risks of Artificial Intelligence?

Some of the risks in artificial intelligence – or, more accurately, AI systems and tools – are well publicized. For example, AI “hallucinations,” occurring when a generative AI tool that creates responses to prompts that have little or no basis in fact, have become legendary. Biased or inaccurate responses are a common issue, and certain AI models have design flaws that can magnify those issues. Additionally, because of the complexity of AI systems, artificial intelligence cannot be treated simply as another form of software – different and more intensive vetting of AI systems are required. CONTINUE READING →

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02 August 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on ADA Compliance and Defense.

An offshoot of the well-established Potter Handy firm, The Reddy Law Firm is quickly becoming known for its aggressive pursuit of claims under the California Unruh Civil Rights Act and the California Disabled Persons Act. These lawsuits, often referencing the Americans with Disabilities Act (ADA), are primarily filed by serial plaintiffs who challenge businesses on a variety of accessibility issues, from parking and entrances to sales counters. With a growing number of cases being filed, especially in California state courts, it’s crucial for businesses to understand how to effectively respond to and navigate these legal challenges. In the article below, JMBM partner Stuart Tubis explores the key aspects of these lawsuits, provides guidance on how to handle them, and offers insights into the best practices for addressing such claims.

ADA Defense Lawyer: How to Respond to a Lawsuit filed by The Reddy Law Firm for Violation of the Unruh Civil Rights Act, California Disabled Persons Act, or ADA

by

Stuart Tubis, JMBM’s ADA Compliance & Defense Group

The Reddy Law Firm LLC is a relatively new law firm that started filing accessibility lawsuits on behalf of various plaintiffs alleging violations of the California Unruh Civil Rights Act and California Disabled Persons Act. Though a relatively new ADA plaintiff’s lawyers, the firm is an offshoot of Potter Handy, from San Diego.  The lawsuits generally reference the Americans with Disabilities Act (ADA) as well.

Generally, each of these lawsuits are filed on behalf of one of several serial plaintiffs, who file many similar cases each year. Some serial ADA plaintiffs in California have been known to file hundreds, sometimes thousands of lawsuits each against various businesses.

The Reddy Law Firm has filed Unruh litigation on behalf of these plaintiffs:

  • Meryl Pomponio
  • Orlando Garcia
  • Brian Whitaker

These lawsuits show no signs of stopping. Each lawsuit includes a summons as a cover page informing you that you have been sued and must respond. It also contains the complaint itself, which generally looks something like this: CONTINUE READING →

Published on:

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31 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.

NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of hotels and restaurants understand and comply with Junk Fee Laws. When consumers make claims against them, we advise owners and operators on strategies and defense of such claims.

Restaurants, Listen Up: Rethink How You Disclose Your Fees to Avoid Junk Fee Lawsuits

As lawyers who specialize in representing hospitality owners, developers, independent operators, and investors, we have a critical message for restaurants: it’s time to rethink how you disclose your fees. Recent changes in the legal landscape have significant implications for your operations, and compliance is no longer a matter of choice—it’s a necessity.

Immediate Statutory Requirements

Let’s dive right in. California Civil Code 1770 now mandates that all charges must be clearly and conspicuously disclosed. This isn’t a future requirement; it’s already in effect. If you’re not disclosing fees on your webpage or menu, you’re putting your business at risk. The penalties for non-compliance can be steep, including lawsuits that could cost you hundreds of thousands of dollars, even if you come out on top.

We’ve already seen several lawsuits filed under “bait-and-switch” pricing, which is prohibited in Civil Code § 1770(a)(9). The new California Junk Fee laws may have created more confusion than clarity. The litigation is just beginning under the new Civil Code § 1770(a)(29). The so-called “restaurant exemption” of SB 1524 may not be all it is cracked up to be. In fact, it may be a trap for well-meaning business people.

If you’re unsure what that means, check out the video below for a detailed explanation. CONTINUE READING →

Published on:

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31 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.

NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of the hotels, restaurants and hospitality facilities to understand and comply with Junk Fee Laws. When claims are made against them by consumers of competitors, we advise on strategies and defense of such claims.

In a significant legislative move, the U.S. Senate is advancing towards establishing a new national standard for price transparency in the hospitality industry. The bill, known as The Hotel Fees Transparency Act, mandates that hotels, short-term rentals, and online travel platforms display the total price, including all mandatory fees, upfront. This initiative mirrors a similar bill passed by the House of Representatives earlier this year and stands a good chance of becoming law before the November elections.

In a new article, Sean O’Neill, senior hospitality editor at Skift, gives us the scoop on this bill’s journey, the industry’s reactions, and the potential impacts. The goal here is clear: to make booking more transparent for consumers and ensure a level playing field across the lodging industry. Jim Butler, founder and chairman of JMBM’s Global Hospitality Group®, is quoted several times, highlighting the bill’s significance and the broad support it has received. Jim notes, “We are down to the final strokes of what could be significant federal legislation,” and points out the lack of organized opposition.

CONTINUE READING →

Published on:

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31 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.

NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of the hotels, restaurants and hospitality facilities to understand and comply with Junk Fee Laws. When claims are made against them by consumers of competitors, we advise on strategies and defense of such claims.

Jim Butler Discusses Pricing Transparency Laws on Hotel News Now Podcast

Effective July 1, California implemented two new laws aimed at increasing transparency in advertised hotel room rates by addressing hidden or “junk” fees. These laws require mandatory fees, such as resort fees, to be included in the initial advertised price, fostering a more transparent and competitive market.

Jim Butler, founder and chairman of JMBM’s Global Hospitality Group®, recently appeared on a Hotel News Now podcast with senior reporter Bryan Wroten to discuss these new laws and their impact.

In this podcast, Jim delves into the history and evolution of mandatory fees in the hospitality industry and explains how these new laws benefit both consumers and hotel operators by creating a level playing field and promoting fair competition.

To gain a deeper understanding of these new laws and their broader implications for the hospitality industry, listen to the full podcast on the Hotel News Now website. His insights are invaluable for hotel owners, operators, and investors navigating this evolving regulatory landscape.

Listen to the Podcast Here.

Stay tuned to the Hotel Law Blog for more updates and expert analysis on legal issues affecting the hospitality industry. We are here to support you in achieving compliance and maintaining a competitive edge in this dynamic market.

CONTINUE READING →

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26 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on ADA Compliance and Defense.

This article was originally published on January 16, 2024 on JMBM’s ADA Compliance & Defense Blog.

Marty Orlick, Chair of JMBM’s ADA Compliance & Defense Group, was recently interviewed by ABC7 for a news report regarding the impact of serial ADA litigants on small businesses. The segment focused on a group of businesses in Santa Paula, California, who have been hit with lawsuits alleging violations of the Americans with Disabilities Act. The significant financial penalties imposed by these lawsuits threaten to close already struggling stores and restaurants.

During the segment, Marty discussed the California Unruh Civil Rights Act which requires businesses and public accommodations to provide equal access to their services and facilities. He explained that the Unruh Act “allows a plaintiff to recover $4,000 per occurrence every time they went to a particular business, or every time they thought of going but they realize there were barriers and they couldn’t get served.” The Unruh Act is often abused by serial plaintiffs who file hundreds of lawsuits every year, each claiming thousands of dollars in statutory damages.

These serial lawsuits can be incredibly damaging for businesses and are the antithesis of genuine legal action by advocates trying to make their communities more accessible.

You can watch the full ABC7 news report here.

CONTINUE READING →

Published on:

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25 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on ADA Compliance and Defense.

In October 2023, the Web Content Accessibility Guidelines were updated to version 2.2. These updates introduced new requirements for improving web accessibility, such as focus visibility and alternative input methods. For hospitality business owners, understanding and implementing these changes is crucial for ensuring ADA compliance and providing an inclusive online experience for all guests. In the article below, JMBM partner Stuart Tubis explores the key updates in WCAG 2.2 and their importance for businesses.

WCAG 2.2: Website Accessibility Standards Get an Update –
What Businesses Should Know

by

Stuart Tubis, JMBM’s ADA Compliance & Defense Group

The Web Content Accessibility Guidelines (WCAG) were recently updated to version 2.2, adding new considerations for businesses seeking to make their websites accessible. As most business have an online presence, there are some critical requirements of WCAG 2.2 that all business owners should know.

The WCAG standards, published by the World Wide Web Consortium (W3C), are often referenced by courts in the US when deciding whether a website complies with the ADA or Unruh Civil Rights Act. The new version WCAG 2.2 adds the following requirements:

  • 2.4.11/2.4.12 Focus Not Obscured: Ensures keyboard focus indicators (such as the blinking cursor or focus box around buttons and links) remain visible despite pop-ups or other content, with a stricter AAA version demanding complete unobscuring. See the example below:ADA-Website
  • 2.4.13 Focus Appearance: Defines technical standards for the keyboard focus indicator outline for low-vision users.
  • 2.5.7 Dragging Movements: Requires alternative ways to complete actions if they involve dragging, except for essential functionality.
  • 2.5.8 Target Size: Provides minimum size requirements for clickable elements like buttons and links.
  • 3.2.6 Consistent Help: Ensures help functionalities (e.g., company contact details or self-help option) remain in the same place across all pages for screen reader users.
  • 3.3.7 Redundant Entry: Auto-populates or allows re-selection of previously entered information to aid users with cognitive or memory disabilities.
  • 3.3.8/3.3.9 Accessible Authentication: Prohibits cognitive function tests during authentication, with the AAA version removing more exceptions.

Many in the business community are concerned that adding more criteria raises the difficulty for entities already striving to comply with earlier versions. Many disabled advocates maintain that the higher standards help users navigate websites with pop ups and hard-to-navigate organization. CONTINUE READING →

Published on:

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23 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.

NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of the hotels, restaurants and hospitality facilities to understand and comply with Junk Fee Laws. When claims are made against them by consumers of competitors, we advise on strategies and defense of such claims.

On July 1, 2024, the first comprehensive Junk Fee Law in the United States took effect in California. It prohibits drip pricing, which involves advertising a price that fails to include all mandatory charges and fees a consumer must pay. It requires upfront disclosure of the total price of goods or services upon first contact with the consumer. It applies to the sale of most goods and services, with only a few exceptions. A last-minute restaurant exemption was rushed into law — only two days before the law’s effective date.

In a recent program hosted by myLawCLE, junk fee compliance and defense lawyers Jim Butler and Mark Adams presented an update on California and federal regulations regarding junk fees. SB 478, SB 1524, and AB 537 are all in the rearview mirror and the final impact of these bills on our current law is a leading topic of discussion during the webinar. Jim and Mark also analyzed HR 6543 and S 2498, and the FTC’s proposed rule on drip pricing and misleading business practices.

In other words, this course includesthe latest information on all the changes to the most significant Junk Fee regulation in California, Congress, and the FTC.

This webinar took place on Thursday, July 18, 2024. To access an on demand recording, click here.

We have special free passes available for our clients and industry friends. If you would like more information on these passes, please contact Laura Bailey at lbailey@jmbm.com. CONTINUE READING →

Published on:

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1 July 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.

On July 1, 2024, California’s new Junk Fee Law took effect. It could have worldwide impact if prices for goods or services are publicly advertised and reach California residents. How can you avoid that with online ads and other public broadcasts over commercial media?

In anticipation of this event, many international hotel companies, cruise lines, travel providers, ticket sellers, and online sellers have already changed their advertising and promotions to comply with California law rather than risk violation. Watch for a big change to “transparent pricing” as you search online.

Take this short survey to double check your exposure

It is so much easier to prevent junk fee litigation than to defend it. Even if you “win,” it is expensive to fight government agencies. It can be worse combatting class action lawsuits by consumers with contingent fee plaintiffs’ lawyers. (Think of the 40,000+ lawsuits filed under the ADA and comparable state laws that provide for attorneys’ fees to plaintiffs)

Wakeup! It is July 1, and time to check the last-minute changes signed into law by the California Governor on June 29. Determine whether this law applies to you. Understand what it takes to comply or validly secure an exemption. Consider your answer to the following questions:

  • Do you offer hotel, restaurant, or short-term lodging facilities?
  • Do you offer consumers goods or services from California, or to California residents?
  • Are you going to rely on the restaurant exemption from the new law?

If you answered “yes” to any of these questions, consider a pro-active consultation to prevent unnecessary problems with the new California Junk Fee Law (as amended on Saturday, June 29, 2024).

Resources to help you avoid problems with California’s Junk Fee Law

The resources below provide the latest information on all the changes to the most significant Junk Fee regulation in California, Congress, and the FTC.

Free blog articles from the hospitality lawyers in JMBM’s Global Hospitality Group®. Extensive up-to-date blog articles, analysis and copies of the new laws and regulations.

Live Webinar (July 18, 2024) and On Demand recording. We have special passes for clients and friends of JMBM’s Global Hospitality Group®. Contact Laura Bailey

Event Details

Date: July 18, 2024
Location: Live Video-Broadcast
Time: 10 AM – 12:10 PM PST
Agenda and Registration: Click here

REGISTER NOW

We have special passes available for our clients and industry friends. If you would like more information on these passes, please contact Laura Bailey at lbailey@jmbm.com. CONTINUE READING →

Published on:

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29 June 2024

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.

Note: If you are a consumer with a Junk Fee issue, please do NOT contact us! We do not represent consumers. We represent owners, developers, lenders, and management of hotels, restaurants, and other hospitality-related properties. We advise them on litigation, labor, regulatory compliance, contracts, transactions, financing, development, and strategies.

Understanding California’s Landmark Junk Fee Law
Revisions to the Consumer Legal Remedies Act (CLRA)

Transparent pricing bans hidden fees and drip pricing
by

Jim Butler
Partner & Chair, JMBM’s Global Hospitality Group®

Mark S. Adams
Hotel Dispute Lawyer, Partner & Senior Member
JMBM’s Global Hospitality Group®

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.).

The bottom line: As of July 1, 2024, California’s new Junk Fee Law is a comprehensive transparency pricing law that eliminates hidden mandatory fees. It applies to all businesses in all industries, except for a few specific exceptions. Restaurants are exempted if they meet certain conditions. Restaurants may find compliance trickier than apparent at first glance, and even a modest consumer backlash for this special exemption may be harmful.

CA Governor signs SB 1524’s new Junk Fee Law with “Restaurant Exemption” (if certain tests are met). SB 478, SB 1524, and AB 537 all go effective July 1, 2024. Unfair business practices redefined in CC 1770.

California bans fees and practices known by many names — junk fees, hidden fees, mandatory fees, drip pricing, surcharges, resort fees, unfair and deceptive practices, bait and switch, and consumer fraud.

Names for the new 2024 California Junk Fee Law

There are so many names for the California law that is making big changes, primarily to Civil Code Section 1770. It may be helpful to list the most common names, which include:

  • Consumer Legal Remedies Act (CLRA)
  • California Junk Fee Law
  • California Honest Pricing Law
  • California Hidden Fees Statute
  • California Transparency Law
  • California SB 478
  • California SB 1524
  • California CC 1770
  • California Unfair Business Practices
  • California Unfair Competition Act
  • The price you see is the price you pay

Don’t forget AB 537 and its $10,000 civil penalties.

In addition to the amendments to California CC 1770, another Junk Fee law effective July 1, 2024, was introduced by Assemblyman Berman. He had a bad experience with a hotel “resort fee” he encountered in his private life. It led him to introduce the new law which adds a new Section 17586.6 to the California Business and Professions Code (B&P Code).

It is nicknamed the California Resort Fee Bill. It requires upfront price disclosure on first contact with consumers of all mandatory fees for all hotels, motels, and other short-term lodging rentals for less than 30 days. It carries a civil penalty of not more than $10,000 per violation. It extends to any advertisement, display, or offer of either from or into California.

It is also referred to as B&P Code Section 17586.6, and the Transparency in Short-Term Lodging Prices Act. CONTINUE READING →

Contact Information
Jim Butler, Chairman
Global Hospitality Group®
Jeffer Mangels Butler & Mitchell LLP
(310) 201-3526 • jbutler@jmbm.com
www.HotelLawyer.com

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