Understanding California Business and Professions Code Section 17550.31
California Business and Professions Code Section 17550.31 offers a crucial safety net for fans purchasing discounted airfare through third-party travel brokers or travel consolidators. If you buy an airline ticket or travel voucher and are defrauded by the travel seller, state law dictates that the airline itself must reimburse you, provided certain conditions are met.
Sources & References
The information on this page was was sourced from:
Section 17550.31, California Business and Professions Code (BPC): The consumer protection statute regulating sellers of travel, travel consolidators, and airline refund liabilities.
CA Senate Bill 95 (2025-2026 Regular Session): Legislation establishing consumer relief protocols for individuals defrauded by travel consolidators and unregistered sellers of travel.
When the Airline Must Pay You Back:
To hold the air carrier financially responsible, three specific criteria must be satisfied. First, the consumer must be the direct victim of fraud perpetrated by the travel seller. Second, the airline must have "actual knowledge" that the seller was engaging in fraudulent business practices. Finally, the buyer must have already tried and failed to get their money back from the deceptive seller within a reasonable timeframe.
Defining Fraud and Actual Knowledge:
The statute specifically defines "fraud" as an act of deceit that violates either Section 1710 or Section 1770 of the California Civil Code. For the airline to have "actual knowledge," they must be genuinely aware that the travel seller's regular course of business involves violating those specific civil codes.
Unregistered Sellers and Voided Sales:
California heavily regulates "sellers of travel," requiring them to maintain proper registration with the state. If you purchase your flight from a travel broker who failed to officially register, the law gives you the power to completely void the transaction.
Legal Action and Attorney's Fees:
If a consumer is forced to take the matter to court to enforce their rights under this law, they have a layer of financial protection. If the buyer wins their case, the court is legally mandated to award them reasonable attorney's fees as well as coverage for their court costs.