CALIFORNIA
Registration or licensing:yes
Registration or licenses for individuals:no
Fees paid to state:yes
Bonding:as one alternative to trust
account
Trust account:yes
Restitution fund:yes
Errors and omissions insurance:no
Extends to out-of-state sellers:yes
References independent contractors:yes
Cancellation/refund rights:yes
Disclosure regulations:yes
Rules for display of registration number:yes
Other advertising regulations:no
Numbers registered:more than 6,000; about
4,000 confirmed as California-based
Other:restitution fund; references travel
certificates
California requires all the state's sellers of travel, whether
wholesale or retail, to maintain a trust account if the travel they
sell involves air- or sea-only or includes that transportation with
other travel components. It does not cover sellers of land programs
only. Agencies can substitute a bond for the trust account, in an
amount equal to what would be held in the trust account.
The state targets out-of-staters, too, if they advertise and
sell in the state; Web sites are viewed like national advertising,
and agencies can avoid a registration requirement by declining to
accept business from Californians.
Registered out-of-staters are required to maintain a trust
account, too, for funds collected from California clients, but they
are not contributors to a restitution fund supported by in-state
agencies for purposes of reimbursing California consumers due to
"bankruptcy, insolvency, cessation of operations or material
failure" of an in-state properly registered travel seller to
provide travel services as purchased. Fund must be maintained at a
minimum of $1.6 million (and currently has $2.9 million).
Independent contractors do not have to register if they sell
under contract exclusively for one or more registered sellers and
do not handle client money or receive service fees from
consumers.
Another batch of rules require registered agencies to disclose
the following in writing: total trip cost, payment schedule, names
of suppliers, departure details, all terms and conditions including
cancellation conditions, the client's refund rights, plus a
statement about the agency's trust account, its contributions to
the restitution fund and/or any alternative provisions it makes to
protect client funds and details of clients' right to make claims
on these. And in circumstances when a client cannot make a claim on
the fund, agencies must disclose that orally and in writing.
Agencies are required to display the registration certificates
where they are easily accessible to the public, at each location,
and to display the registration numbers "conspicuously" on all
advertising and promotional materials delivered in any manner,
which covers the Web.
FLORIDA
Registration or licensing:yes, with
exceptions for certain ARC agencies
Registration or licenses for individuals:no,
but a list of all employees and contractors is required
Fees paid to state:yes
Bonding:yes, with exceptions for most ARC
agencies and others
Trust account:no
Restitution fund:no
Errors and omissions insurance:no
Extends to out-of-state sellers:yes
References independent contractors:yes
Cancellation/refund rights:yes, with regard
to travel certificates
Disclosure regulations:yes, with regard to
travel certificates
Rules for display of registration number:yes
Other advertising regulations:yes, with
regard to travel certificates
Numbers registered:5,076 total; includes
3,002 independents, 285 from out of state, 30 exempted from
bond
Other:references travel clubs
Florida requires sellers of travel to register and obtain a bond
of up to $25,000 (or up to $50,000 if selling travel certificates)
or provide alternative surety. ARC agencies are exempt from
registering and bonding if they have had the same owners for three
years (or five years if selling travel certificates). In addition,
the state can, and does, waive the bond rule for any seller with
five years or more as a seller of travel in Florida in good
standing. Common carriers and accommodations providers are
exempted.
When registering, agencies must provide a list of all authorized
independent agents, who are defined in the law as persons who have
written contracts with a host that is in compliance, do not receive
fees from purchasers and do not have blank stock or documents or
ability to issue documents. These independent agents also must file
an affidavit each year listing the sellers he or she
represents.
The state expects firms to register whether selling wholesale or
retail, "directly or indirectly." and out-of-staters if they are
selling to Floridians.
Proof of registration must be prominently displayed at primary
place of business, and the registration number must appear on each
contract of sale and on each advertisement.
HAWAII
Registration or licensing:yes
Registration or licenses for individuals:no
Fees paid to state:yes
Bonding:yes, for charter tour
operators
Trust account:yes
Restitution fund:no
Errors and omissions insurance:no
Extends to out-of-state sellers:no
References independent contractors:no
Cancellation/refund rights:yes
Disclosure regulations:yes
Rules for display of registration number:no
Other advertising regulations:no
Numbers registered:1,584 agency sites; 2
charter tour operators
Other:regulates charter tour
operators
Travel agencies must register and maintain trust accounts;
charter tour operators also have to maintain bonds.
Hawaii also states agencies must provide written disclosure
regarding trips as follows: prices and payment-due dates, trip
details, names of suppliers, cancellation and other terms, details
on the agency's trust account and information on consumer rights
outlined in the law. Supplemental regulations say the agencies must
get approval for their consumers rights disclosure form.
If some travel services were not provided, the consumer has the
right to a refund within 14 days of request, minus cancellation
fees and amounts held by suppliers.
ILLINOIS
Registration or licensing:no
Registration or licenses for individuals:no
Fees paid to state:no
Bonding:alternative to trust account
Trust account:yes, with exceptions, including
ARC approval
Restitution fund:no
Errors and omissions insurance:alternative to
trust account
References independent contractors:no
Cancellation/refund rights:yes
Disclosure regulations:yes
Rules for display of registration number:not
applicable
Numbers registered:not applicable
Other advertising regulations:yes
Illinois imposes rules on so-called travel promoters, defined as
companies that do not have ARC approval or do not have $1 million
in errors and omission insurance plus a $100,000 bond. The travel
promoters protect client funds with a trust account.
However, no travel seller in the state is required to
register.
The law also imposes on promoters a series of disclosure
requirements including the following: pricing, name of supplier of
transportation and other specifics, cancellation terms, location
"and number" of the trust account and details of the clients' right
to a refund if transportation is canceled through no fault of the
customer.
The promoter cannot advertise air or sea transportation unless
it has contracted for that transportation.
IOWA
Registration or licensing:yes
Registration or licenses for individuals:no,
but list of all employees is required
Fees paid to state:yes
Bonding:yes, with an ARC exemption
Trust account:no
Restitution fund:no
Errors and omissions insurance:as one
alternative to bonding
Extends to out-of-state sellers:yes
References independent contractors:no
Cancellation/refund rights:no
Disclosure regulations:no
Rules for display of registration number:no
Other advertising regulations:no
Numbers registered:130 ARC agencies, 226
non-ARC, including 88 from out of state
Other:references telemarketing
All travel agencies must register, but non-ARC outlets have to
post a $10,000 or provide an alternative surety. Iowa also presses
for registration by out-of-state firms that "do business" with
travelers in Iowa. Independent contractors are not mentioned, but
each agency is required to list all employees.
The law permits e-mail and other unsolicited promotions (via
phone or mail) if directed to individuals to whom the agency has
previously sold travel.
MASSACHUSETTS
Registration or licensing:no
Registration or licenses for individuals:no
Fees paid to state:no
Bonding:no
Trust account:no
Restitution fund:no
Errors and omissions insurance:no
Extends to out-of-state sellers:no
References independent contractors:no
Cancellation/refund rights:yes
Disclosure regulations:yes
Advertising regulations:no
Rules for display of registration number:not
applicable
Other advertising regulations:no
Numbers registered:not applicable
Other:references travel certificates, travel
clubs
The Massachusetts seller of travel law is largely a disclosure
law. Affected sellers include travel agents, tour operators, "ocean
cruise companies," charter companies, sellers of travel
certificates and travel club operators, but the rules do not
pertain to services provided to business travelers.
The seller must disclose -- usually orally and in writing --
details on each supplier, price, payment-due dates, trip details.
terms of any substitution policy, terms of any cancellation or
refund policy and terms of any cancellation insurance, including
its limitations.
Further, the agent is expected to disclose facts that might
influence a consumer not to enter into a transaction; once a sale
has occurred, the retailer must advise when and how each payment
will be made to suppliers and provide a written confirmation within
five days after each payment was made, plus provide written
confirmation within two days after any reservation has been made
for a customer.
If the agency violates the rules, the client can cancel and must
receive a refund in 30 days.
A number of additional rules dictate timing for document
delivery.
Also, if a seller acting as a tour operator fails to provide
what is promised, it must give the customer the option of a refund
or substitute services, and refund the difference if the new
service is of lower standard.
NEVADA
Registration or licensing:yes
Registration or licenses for individuals:no
Fees paid to state:yes
Bonding:no
Trust account:yes
Restitution fund:yes
Errors and omissions insurance:no
Extends to out-of-state sellers:the probable
intent
References independent contractors:yes
Cancellation/refund rights:no
Disclosure regulations:yes
Rules for display of registration number:yes
Other advertising regulations:no
Numbers registered:Total: 246 agencies,
including 30 non-ARC, 40 from out of state; 547 individual salaried
and outside agents
Other:references travel certificates and
travel clubs
Effective Oct. 1, 2003, Nevada requires all agencies to
register, to maintain trust accounts and to support a consumer
recover fund. Tour operators and tour brokers have to register, as
well, but not contribute to the recovery fund.
Individual agency staff and their comissioned contractors do not
have to register with the state, but this exemption applies only if
trip payments are made directly to the registered agency and the
staffer or contractor is paid only by the registered firm.
Registered agencies have to display at the place of business and
at Web sites a statement spelling out customer rights to recover
from the fund, and registered sellers have to include their
registration numbers in advertising.
Regulations remain to be written.
OHIO (repealed 2003)
Registration or licensing:yes
Registration or licenses for individuals:no
Fees paid to state:yes
Bonding:yes, with exceptions including ARC or
Iatan approval
Trust account:no
Restitution fund:no
Errors and omissions insurance:no
Extends to out-of-state sellers:no
References independent contractors:no
Cancellation/refund rights:no
Disclosure regulations:no
Rules for display of registration number:yes
Other advertising regulations:no
Numbers registered:555 travel agencies, 214
tour promoters
Ohio requires registratin of travel agencies and tour promoters
(meaning sellers without ARC or Iatan approval)to maintain a
$50,000 bond. The bond amount is $20,000 for those selling only
intrastate travel.
Registered firms must use registration number and the words
"registered Ohio travel agency" or "registered Ohio tour promoter"
in all advertising in the state.
RHODE ISLAND
Registration or licensing:yes
Registration or licenses for individuals:yes
Fees paid to state:yes
Bonding:yes
Trust account:no
Restitution fund:no
Errors and omissions insurance:no
Extends to out-of-state sellers:no
References independent contractors:no
Cancellation/refund rights:yes
Disclosure regulations:yes
Rules for display of licensing number:yes
Other advertising regulations:yes
Numbers licensed:about 80, plus more than 700
managers and counselors
Other:requires exams for managers and
staff
Targeting in-state agencies specifically, Rhode Island requires
all agencies to obtain licenses and post $10,000 bonds. It also
licenses and tests agency managers and counselors. In addition,
agencies must file lists of all their employees.
The state, in the law and supplemental regulations, requires
that agents disclose a range of things including the following:
pricing details, name of carrier and transportation specifics,
conditions of sale including cancellation terms and all parties'
rights and obligations depending on the reason for cancellation.
Also, agents are required to advise of changes to any travel paid
for and specifically instructed to advise of changes in
accommodations and to refund an appropriate difference if the
quality is lower than what was purchased.
If the agency breaches its "duty of care," it must refund the
client's payments within 45 days.
Agencies and agents must post their licenses "conspicuously" in
the place of business, and the agency's number must appear in all
advertising.
The regulations also say ads must show prices for promoted
products and tell which components are included in stated prices.
Other ad rules are: Indicate with a promoted air fare is only
one-way, and advise what kind of role any tour guide will play.
WASHINGTON
Registration or licensing:yes
Registration or licenses for individuals:no,
but a list of all employees and contractors is required
Fees paid to state:yes
Bonding:alternative to trust account
Trust account:yes, with exceptions including
USTOA or NTA membership
Restitution fund:no
Errors and omissions insurance:no
Extends to out-of-state sellers:yes
References independent contractors:yes
Cancellation/refund rights:yes
Disclosure regulations:yes
Rules for display of registration number:yes
Other advertising regulations:yes
Numbers registered:945 including 91 from out
of state; 96 pending
Other:references travel certificates and
travel clubs
Travel agencies are required to register and maintain trust
accounts or provide an alternative surety which could be a bond of
$10,000 to $50,000 depending on volume. Staff don't have to
register, but agencies are required to provide lists of all
employees and any outside agents selling on their behalf. The trust
account rule does not apply to ARC funds, and other funds can be
exempt if agency officials swear they never hold client money more
than five days.
Independent agents don't have to register if they sell in the
name of a host and all money is processed by the host.
Washington solicits registrations from out-of-staters that do
business with residents, but advertising in national media or in
electronic media does not constitute transacting business; selling
only wholesale also does not count as doing business in the
state.
Agencies are required to disclose, in eight-point boldface type,
such things as: amount paid and payment-due dates, name of
suppliers, all known trip details (with full details to be provided
with final documents), advisory on penalties for canceling and
registration number of the seller.
The law provides a schedule for refunding money due the client
after a cancellation by any party, allowing for cancellation
penalties and recovering funds from suppliers.
The registration numbers must be posted "conspicuously" in the
place of business and must appear in advertising that includes
products with prices or dates.
Also, agencies are forbidden to advertise products unless they
know they are available when the ad was placed. And, the seller of
travel is expected to "keep written or printed documentation of the
steps taken to verify that the advertised offer was available at
the time the advertising was placed" and to keep those records for
a year.