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Hospitality Revenue Management Laws and Regulations

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Sherman Antitrust Act (1890)

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Prohibits anti-competitive practices and mandates that the government investigate trusts. Impacts revenue management by limiting price-fixing and collusive behaviors that can artificially inflate prices.

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Robinson-Patman Act (1936)

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Prevents unfair price discrimination by ensuring sellers offer the same price terms to all buyers. Revenue management is affected as it necessitates careful tracking of pricing strategies to avoid legal issues.

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Federal Trade Commission Act (1914)

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Established the FTC to protect consumers and prevent anticompetitive business practices. Revenue management is guided by FTC rules to avoid deceptive pricing or advertising.

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Civil Rights Act (Title II) (1964)

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Prohibits discrimination in public accommodations based on race, color, religion, or national origin. Revenue management systems must ensure pricing and services are offered equitably to all customers.

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Americans with Disabilities Act (ADA) (1990)

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Requires hospitality businesses to make accommodations for guests with disabilities. Revenue management strategies must account for the costs of compliance without discriminating in pricing.

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General Data Protection Regulation (GDPR) (2018)

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European law that regulates the processing of personal data. Revenue management in the hospitality industry must ensure compliance, potentially affecting strategies that involve personal data collection and usage.

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Health Insurance Portability and Accountability Act (HIPAA) (1996)

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In contexts where hospitality entities deal with health information, HIPAA compliance is mandatory. This can impact revenue management by restricting data usage and requiring safeguards.

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Fair Labor Standards Act (FLSA) (1938)

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Sets minimum wage, overtime pay eligibility, and child labor laws. Affects revenue management by influencing labor costs in the hospitality sector.

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Occupational Safety and Health Act (OSHA) (1970)

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Ensures safe and healthy working conditions by setting and enforcing standards. Compliance can impact revenue management by incurring costs for implementing safety measures in hospitality operations.

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Hospitality Franchise Agreement Regulations

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Governs the relationship between hospitality franchisees and franchisors. This impacts revenue management through the terms of the agreement such as fees, area exclusivity, and brand standards compliance.

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