US-CaliforniaWhat bond or trust requirements apply to sellers of travel?
In California, sellers of travel must post a $50,000 bond or maintain a trust account with a qualified financial institution to protect consumer funds.
What the Law Says
California law regulates sellers of travel to protect consumers who prepay for travel services. The law requires financial safeguards — either a surety bond or a trust account — to ensure refunds if the seller fails to deliver services.
Under the Seller of Travel Law, any person or business selling travel services to Californians for compensation must be registered with the Attorney General’s office. This includes travel agents, tour operators, and online platforms arranging air, hotel, or package travel.
The law mandates that registrants post a surety bond in the amount of $50,000, or establish and maintain a trust account with a qualified financial institution located in California. Funds held in trust must be fully segregated and used solely for the benefit of clients.
The bond or trust must remain in effect for the entire time the seller is registered — and for at least 12 months after registration ends — to cover claims arising from transactions during active registration.
Statutory TextEvery seller of travel shall file with the Attorney General a surety bond in the amount of fifty thousand dollars ($50,000)… or shall establish and maintain a trust account…
— Civil Code § 17550.1 — Bond or trust account required
Statutory TextThe bond shall remain in full force and effect for a period of not less than 12 months after the date the seller ceases to be registered.
— Civil Code § 17550.1 — Bond or trust account required
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.