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Legal issues are part of every convention and meeting — yet there’s no one-size-fits-all scenario when it comes to dealing with those legal issues.

“The legal issues involved in planning a meeting are as varied as the meetings themselves,” says Jill Blood, VP, Deputy General Counsel with Maritz. “For a small, low risk meeting, the legal issues are typically straightforward and often primarily focused on contracting. For larger complex events, it can be more complicated to manage risk.”

On any given day, Blood’s inbox might have questions about what activities are too high risk to include on an incentive trip, how changing data-privacy regulations impact the collection and use of attendee data, how they can safely and thoughtfully use AI to make the planning process more efficient, how trademarked and copyrighted material can be used at events, or how they can navigate visa requirements in foreign countries. “Every day is different!” says Blood.

Not surprising, hotel contracts typically remain front and center. “Hotel contract negotiations are, and will always be, a huge part of the event-planning process. Hotel agreements often serve as a cornerstone of the process, so a lot of focus is rightly put on those agreements,” she addds.

Still, there are plenty of challenges beyond hotel contracts. “Because there are so many moving pieces involved in planning and executing a great meeting, it’s important to keep an eye on the larger risk picture beyond contracts,” Blood says. “DMCs, transportation, food and beverage, AV and other vendor agreements are also critical elements of managing risk for an event. And it’s important to make sure attendee data is being used thoughtfully and in compliance with data privacy regulations.”

Like others, Blood points to the pandemic as a time when many things changed in the industry.

The event industry’s approach to risk, contracts and legal issues changed significantly during and following the pandemic. “The good news is that after facing those pandemic-related concerns, event planners and suppliers are now even more aware than ever of the risks associated with events and the terms of their contracts,” says Blood.

One result of that, she notes, is that it contracts are more detailed and comprehensive, and events are safer for attendees. Unfortunately, there’s also a downside. “The bad news,” Blood says, “is that it can be harder than ever to get contracts across the finish line. Throughout the event ecosystem, every party is looking at contracts closely and evaluating their risk very thoughtfully. That can add extra time to the contracting process and make the planning process more complex.”

In some cases, says Blood, they’re also seeing new stakeholders such as in-house lawyers, CFOs and other executives enter the planning process, who maybe aren’t as familiar with the nuances of the industry. Educating these new stakeholders can be time consuming and stressful for planners.

As if all that weren’t enough of a challenge, Blood says the use of AI is now another concern in the meetings industry, just as it’s a concern in almost every other industry. “The technology offers huge potential but also creates risks to navigate. For Maritz, our AI initiative has been a balancing act between moving quickly to take advantage of the potential of the technology, while also ensuring that we’re using it safely and thoughtfully.”

The many uses of AI are among the newer issues planners must think about, while also continuing to deal with longtime core issues such as data privacy and security. “As an industry, we’ve always put guest experience first, and I think of data privacy and security compliance as an extension of that approach,” Blood notes. “We want attendees to be confident that their data will be kept safe and used responsibly. That said, as new regulations are passed each year, compliance can feel like a constantly moving target for planners.”

Much of the complexity stems from the fact that legal obligations related to data privacy and security are different in different countries and even vary state to states. Blood recommends that planners seek the counsel of external privacy experts to help navigate the changing landscape around privacy and security.

“That said, at a high level, many of these regulations require that those who collect and process attendee data ensure that the data is safe and secure and that it is used in line with the expectations and wishes of the attendee,” says Blood.

At Maritz, data privacy and security are an ongoing conversation between their legal, information security and operations teams to ensure that they’re complying with applicable laws while also delivering the best events possible. For them, that often involves asking a series of questions before they collect or share data:

Are we collecting the least amount of data possible to allow us to achieve our goal?

Could this data be aggregated or anonymized?

Is the data being used in a manner that attendees have consented to?”

Blood cautions that planners should also be aware of new laws in Washington, Nevada and Connecticut that govern the collection and sharing of health data. “In some cases, the definition of health data under those new laws is defined broadly enough that it encompasses frequently collected information such as allergies and onsite accommodations.”

In addition to differing international laws, when a meeting is set outside of the United States it can also complicate basic contract negotiations. “Negotiations can be more challenging outside of the U.S. for a number of reasons including language barriers and cultural differences in contract standards,” Blood says. “For example, we often find that standard contractual language around insurance varies widely based on the location of the vendor. The EU also has a robust data privacy and security law (GDPR), that in many cases is stricter than corresponding U.S. laws.”

When it comes to overall security, Blood believes it’s all about being prepared. “One of the most important steps a planner can take to mitigate risk on events is to have a robust emergency preparedness plan ready to execute if something goes wrong. It’s impossible to operate an event with zero risk, but having a crisis plan ready if the unexpected happens can go a long way to mitigating risk.”

Lisa M. Sommer Devlin, a Phoenix-based attorney with many years in the meetings industry, says, when it comes to legal issues, attention to detail is crucial. Planners should “make sure the contract is property drafted to state the terms and conditions the parties have agreed upon, understand the financial impact of clause like Attrition/Performance or Cancellation, and understand that privacy issues impact many areas of event contracting.”

Although these aren’t new issues, Devlin points out that some elements have become more significant in recent years. Privacy, she says, “is increasingly important,” and Force Majeure took on new significance when the pandemic hit. In most cases, she adds, the most serious result of not understanding the issues or failing to pay full attention to every detail is that groups may end up paying for things they didn’t anticipate or include in their budget.

Like others, Devlin says data privacy has become more and more challenging. “Customers need to understand that all hotels have their own privacy and data protection policies and can’t enter into a different clause with every customer. Groups need to get permission from their attendees for the group to share personal information with the hotel or for the hotel to provide information about group guests to the group.”

Moreover, she says, hotels can’t let groups review its in-house guests list or even always provide a list of all of the group’s guests staying at the hotel. “Hotels also can’t let one group know which other groups are in-house and can’t let a group approve other bookings in conjunction with its events. The hotel can agree not to book competitors or named other events, but it can’t go to the group to let it approve or disapprove other bookings.”

Devlin points out that Force Majeure events are tied to existing laws, which means a Force Majeure clause must be tied to the applicable legal standards. “The law will automatically excuse parties from their contract if a Force Majeure occurs, whether or not there is a clause,” she says. “If the parties agree on a clause, then its terms will control their obligations.”

In addition to adhering to relevant laws, Devlin says clauses should not include vague, ambiguous or subjective words “such as ‘inadvisable,’ ‘fear of personal safety,’ or ‘in group’s reasonable judgment.’ These are not legal standards under the law of Force Majeure and should be avoided, as they only result in legal disputes.”

Attrition clauses are another challenging element to navigate. “The hotel has the legal right to require a group to fill 100% of its block. Hotel contracts are the only type I know of in which the parties enter into an agreement, but one side does not have to fully perform. You don’t enter into a one-year lease and expect to only have to pay 11 months’ rent,” Devlin points out. “Yet, it has become customary for hotels to agree that groups do not have to fill all of their room block.”

She says that negotiating attrition clauses may depend in part on the group’s booking behavior. “For some events, it might make sense to allow the group to release a certain percentage of rooms without obligation at various points, like 90 or 60 days before arrival. That can be attractive to the hotel as getting back the inventory early gives it more opportunity to potentially resell. If the group attendees are last-minute bookers, it may be better for the attrition clause to include an allowance that is not ‘use it or lose it.’”

Devlin cautions planners to remember that the law of liquidated damages — which is what attrition and cancellation clauses are — does not require damages to be based on “profit,” nor does it require credit for resale. “If you insist on including those things, it’s critical to define the profit percentage and to have a clear and detailed formula for how resale will be calculated.”

As to what planners can do to become sufficiently knowledgeable about legal issues, Devlin advises, “Go to as many industry events as possible, learn from experts, take classes to get designations like CMP. Ask your insurance company for a safety review, as they may have ideas to help you do things better.”

Shanondoah Nicholson, a marketing events manager with Canada-based Landscape Management Network, a provider of business-management software for landscape companies, also points to privacy laws and contract clauses as primary concerns for planners and adds local laws as well — particularly for meetings in international destinations.

She says even seemingly inconsequential laws might impact a meeting. “I recently hosted an event in Pittsburgh where I needed to pick up beer and wine for an office party. I went to the grocery store only to discover that Pennsylvania laws limit the amount of beer you can purchase at a grocery store. By the time I realized, most ‘beer stores’ had closed for the day. Luckily, I had an extra day; however, it would never have occurred to me that there would be a limit in a grocery store versus a beer store. Other laws may have a more serious impact on your event, so it’s important to work with local suppliers to ensure you’re in compliance.”

Nicholson adds that any event with international attendees should include lots of early information about visa and passport requirements so that attendees have plenty of time to get required documents.

She also cautions that legal issues aren’t just a concern during events but also before and after them. “Before, you need to be aware of any contracts you’re signing and what those obligations are beyond the hotel. During the event, your team should have a plan for legal issues that may arise onsite, particularly if you are serving alcohol or traveling offsite. After the event, you need to have a plan on how you’ll handle people’s data in compliance with the applicable laws.”

She agrees that one result of the pandemic is that Force Majeure clauses were suddenly an increased concern. “When the pandemic hit, it was the first time many of us had to invoke our Force Majeure clause. Many of us had never seen it in practice. That awareness is now carrying forward to our events, as we may be asked to review those clauses more carefully than before.”

As for privacy laws, Nicholson says there’s a lot of detail involved. “As event planners, we may have access to attendees’ personal identifiable information including passport details and dates of birth. We may also be privy to health information because of vaccine requirements or accommodations needed onsite. Even dietary restrictions are considered personal health details that should be handled appropriately. Laws like CASL and GDRP can impact how you use contact details following an event. Teams should have a plan in place to ensure this information is secure, handled as attendees were informed and only kept for as long as necessary.”

At the end of the day, Nicholson notes, “Event planners are responsible for the security of their attendees. Having a clear understanding of laws impacting your event is imperative to ensuring the best experience for your attendees.”

Whatever type of meeting you have and wherever it’s held, understanding your legal obligations — whether under U.S. law or the laws of the local jurisdiction — should be among your first steps in the planning process. C&IT