Sellers of travel: travel consolidators: fraud.

Senator Umberg's travel industry consumer protection measure expands California's definition of regulated travel sellers to include consolidators who purchase and resell airline tickets in bulk, while creating new refund requirements when fraud occurs.

The legislation requires air carriers to provide refunds directly to consumers who are victims of fraud by travel sellers when two conditions are met: the carrier had actual knowledge of the fraudulent activity, and the consumer was unable to obtain a refund from the seller within a reasonable timeframe. Additionally, any travel sales conducted by sellers who have not registered with the state Attorney General as required by law become voidable at the purchaser's discretion.

Under current law, sellers of travel must register annually with the Attorney General and maintain trust accounts for customer funds, with specific exemptions for airlines, cruise lines, hotels, and certain transportation operators. The bill maintains these existing exemptions while bringing travel consolidators under the same regulatory framework as other sellers. By classifying violations of these provisions as potential misdemeanors or felonies depending on circumstances, the measure adds criminal penalties to the existing oversight structure.