Regulatory and Legal Affairs

🛒 A systemic fraud issue in the hotel booking industry affects consumer trust and costs billions, as fake sites use brand keywords in Google Ads, driving up marketing costs for legitimate hotels. Europe's CMA launched an investigation into OTAs in 2018, but the issue persists. The U.S. Senate's Stop Online Booking Scams Act of 2019 failed to pass. In 2024, the London-based roomangel Foundation introduced the "Verified by roomangel" stamp, allowing hotels to verify their websites at no cost to combat fraud and reassure consumers.

🧪 The U.S. Department of Health and Human Services announced a phase-out of synthetic food dyes under Trump's administration. HHS Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary will provide details on Tuesday. Before 2025, FDA approved dyes like Blue 1, Blue 2, and Red 40. In January, the FDA decided to ban Red No. 3 by 2027. California and West Virginia passed laws restricting synthetic dyes. Kennedy met with food manufacturers without pushback on removing dyes. A 2021 study linked synthetic dyes to ADHD in children.

📈 European sectoral employers support the establishment of an EU Talent Pool to match employers with third country national jobseekers, addressing skills and labour shortages and demographic challenges. They welcome the Council's general approach (10602/24) and the European Parliament's position (2023/0404(COD)) on the proposed Regulation. Priorities include a voluntary tool for all skill levels, participation of social partners in the steering committee, potential for accelerated immigration procedures, and awareness campaigns. A call is made for a rapid compromise agreement and commitment to support implementation. (Date: Wednesday, 16 April 2025)

🏨 In 2025, a comprehensive guide titled "Hotel Tax Explained" provides essential information on hotel taxes, including various types, rates, and rules worldwide. It serves as a vital resource for travelers and hoteliers to manage tax compliance effectively. The content was authored by Vanshikha Dhar and published on Hotelogix Blog, known for offering tips and trends in the hospitality industry.

💰 Congressional Democrats, led by Sen. Bernie Sanders, introduced the Raise the Wage Act to Congress on Tuesday, aiming to raise the national minimum wage to $17 an hour over five years and eliminate subminimum wages for tipped, disabled, and youth workers over seven years. The current federal minimum wage of $7.25, last increased in July 2009, would more than double by 2030. The legislation faced a party-line vote during the weekend. Sanders cited that over 60% of workers live paycheck to paycheck. Previously, a $15 minimum wage proposal was included in President Biden’s $1.9 trillion COVID-19 relief plan in 2021 but failed to pass. The Raise the Wage Act has the support of Rep. Robert C. Scott (D-Va.), 32 Senators, 142 Congressional Representatives, and various organizations. The restaurant industry has concerns over job losses and the elimination of the tipped wage, currently at $2.13.

🛴 Boston City Council passed a bill requiring third-party delivery companies to acquire city permits and additional insurance for drivers, following Mayor Michelle Wu's February filing due to residents' concerns over traffic issues. Passed in an 11-2 vote, the ordinance mandates extra insurance coverage and safety data submission. The new rules, effective January 2026, impose a $300 fine per order for non-compliance. A controversial 15-cent delivery fee was removed from the bill. DoorDash and Grubhub expressed relief over the fee's removal but have ongoing concerns. The ordinance awaits Mayor Wu's signature.

💸 President Donald Trump announced global reciprocal tariffs, ranging from 10% to 46%, with China at 34% and the EU at 20%. Goldman Sachs predicts a 35% chance of a US recession, up from 20%. The Dow dropped 1,400 points in response. US food supply chain stability is at risk due to reliance on trade with affected allies. The National Restaurant Association warns that tariffs will raise food and packaging costs, creating uncertainty for operators. Vietnam, with $1.5 billion in seafood exports to the US in 2024, faces the highest tariff at 46%.

📈 President Donald Trump announced new global reciprocal tariffs ranging from 10% to 46%, with China and the European Union facing 34% and 20% respectively. Goldman Sachs predicts a 35% chance of recession, up from 20%. The DOW dropped 1,400 points. The U.S. food supply chain may be affected due to reliance on trade with Mexico, Canada, the EU, and China. The National Restaurant Association warns of cost hikes and uncertainty for operators. Vietnam faces the highest tariff at 46%, impacting its $1.5 billion seafood exports to the U.S. in 2024.

📌 UK Chancellor Rachel Reeves announced economic measures in her Spring Statement, extending business rates relief but not fully addressing cost pressures. OBR halved the UK's 2025 growth forecast from 2% to 1% due to global instability and borrowing costs. The Retail, Hospitality and Leisure Relief (RHLR) is extended for another year at a reduced 40% rate, with a cap of £110,000 per business. Small businesses with properties under a £51,000 rateable value will benefit from a small business multiplier freeze. From April, the National Living Wage will increase by 6.7%, giving a £1,400 annual raise to three million workers. Hospitality sector leaders are disappointed with the lack of meaningful support, as the sector faces a £3.4 billion annual tax hike. NICs threshold changes will lead to reduced recruitment and employment. Visa and immigration fees will rise from 10 April 2025, with a Certificate of Sponsorship for skilled workers increasing from £239 to £525, expected to generate £400 million by 2029/30. Hospitality in London faces a £300 million impact from a 15% NICs hike, with the earnings threshold lowered from £9,100 to £5,000, pushing for technological adoption for survival. With the UK economy shrinking by 0.1% in January and interest rates at 4.5%, hotels may stop recruiting, cancel investments, and increase prices. Short-

🍴 Bret Thorn, Senior Food & Beverage Editor at Nation’s Restaurant News and Restaurant Hospitality, has been reporting on food and beverage trends since 1999. Graduated magna cum laude with a BA in history from Tufts University in 1990, he is also a member of Phi Beta Kappa. Thorn studied French cooking at Le Cordon Bleu in Paris and Chinese language/history at Nanjing and Beijing Universities in 1988-1989. He won the 2006 Jesse H. Neal National Business Journalism Award and was inducted into the Disciples d’Escoffier in 2014. Thorn, who wrote for The New York Sun from 2005 to 2008 and has podcast "In the Kitchen with Bret Thorn," resides in Brooklyn, NY.