Within the realm of protecting consumers against fraudulent and deceitful business practices,
several American states and Canadian provinces have introduced legislation over the course of many years intended to regulate Sellers of Travel, including but not limited to travel agencies and tour operators.  Although Seller of Travel Laws are different in each jurisdiction, states tend to follow common regulatory schemes and have introduced laws that impose similar requirements. Typical state regulatory measures include, but are not limited to, any combination or all of the following requirements:

• • Licensing and registration;
• • Refund obligations;
• • Written client disclosures;
• • Advertising and marketing disclosures; and/or    
• • Maintenance of financial security (usually in the form of a bond, letter of credit or certificate of deposit)

Many Seller of Travel Laws have extraterritorial application, meaning that businesses domiciled outside of a state that have such a law are nevertheless subject to the law if they market to or sell travel to clients residing in that state. Certain states may offer companies exemptions to some of the above requirements depending on the type of company, its conduct, activities, practices or physical location. However, failure to comply with applicable Seller of Travel Laws can result in severe penalties including monetary fines, cease and desist orders and, in rare instances, criminal prosecution. 

The states with the most comprehensive regulatory regimes whose laws typically apply to businesses outside of their respective borders and impose most or all of the above requirements are:

• • California
• • Florida
• • Hawai'i
• • Iowa
• • Nevada (law suspended until July 1, 2015)
• • Washington  

Certain other states tend to impose less comprehensive regulatory measures on travel agencies and tour operators. These states include:

• • Delaware
• • Illinois
• • Louisiana
• • Massachusetts
• • New York
• • Pennsylvania  

For travel companies that charge at least a nominal membership fee in exchange for future travel benefits,* the laws of Minnesota and Virginia may affect you. Finally, the Canadian provinces of British Columbia, Ontario and Quebec also impose restrictions on Sellers of Travel.

Our Services
Zim Travel Law can help bring your business into compliance with the labyrinth of laws regulating Sellers of Travel. We can accomplish this efficiently by simplifying and streamlining licensing, client disclosure and financial security requirements, saving you precious time and money.

* These companies are not necessarily travel clubs known for using high-pressure sales tactics, charging exorbitant membership fees and which are frequently investigated by state attorneys general for fraud. Certain travel membership societies that provide value for their members and have a lawful purpose could be subject to the Seller of Travel Laws in Minnesota and Virginia.