There is a general rule of necessity with any government board. If they need to act and can't act, the conflict can be overlooked. If they are paralyzed from acting, they may have to overlook the conflict of interest.
There has been a fair amount of activity in regulating massage parlors for the past few years. It's not a new issue.
The more the public is informed the better.
It's not cut and dried. But these issues never are.