How do you interpret the last scene where Hana, seemingly shocked, looks over to her dad and comments the situation with "Jesus Christ, Dad..."?
Kath crossed the line of bringing club business into wrecking a Carnation's PERSONAL life.
She only was able to get away with it because Elias is now a clubmember (she was to have been wet as hell bringing him in to the fold just to fk w/Felicia: while I'm sure he will be useful and was approved by the other members, his wife being up there, and his basically being cuckolded as a result, definitely was a main factor; keep in mind that that movie they were showing in the background of her would have included MC railing her in Elias's own office).
Otherwise, pretty sure it would've been off the table, both for the reason that the club wants to keep itself completely secret from outsiders, and because it's probably in the contract that they're not supposed to cross that boundary, although Kath definitely pushed the MC to fuck Rose in public at the park in her own neighborhood, IIRC. Keep in mind the porn video she made of Rose, with Rose's name written right on her, isn't actually being shared publicly, but only amongst club members, although it has to have been a pretty big scare for Rose.
So, yeah: both Hana and her dad are (in addition to being amazed at Kathleen managed to JUST dodge the rules) both aghast at how completely Kath managed to annihilate Felicia's ENTIRE life, instantaneously. Even if Feli wins, she loses, BADLY, unless some bright side silver lining is available. MC stepping up certainly will be a factor (unless the player is not following a path that supports her in which case she really is just fucked in every way: house girl status would probably follow her getting forcefully divorced by Elias if she loses, which is probably part of why he told her she has to win), although I somehow doubt that the team will let us get away with taking the gorgeous golden girl as our own to have and hold at the end of the game...
Late EDIT/PS...
It occurs to me now that Felicia ending up as a house girl would be the popped cherry on top of everything, considering she joined the competition (in which she, probably unknowingly was going to be repeatedly fucked by every last club member, and probably more than a few staff members, in week 3) to become/have the power and prestige of a club member, and be above it all.
She clearly never thought to instead be ruined, and end up endlessly humiliated, degraded, and fucked by the very club members she sought to hobnob with, being their toy for the next decade or two, if she loses and gets pre-nupped out of everything, so turns to spreading her legs for the club to make ends meet and maintain her expensive tastes.
She's obviously into extreme experiences, and is a determined survivor, so would dive in and probably adapt pretty quickly, but would utterly hate being back at square one after decades of humiliatingly whoring herself to the top