California Telephonic Seller Bond Overview
- Purpose: To protect the public from illegal or unethical telemarketing practices
- Who Needs It: All telemarketers who solicit consumers in California
- Regulating Body: The California Attorney General's Office
- Bond Amount: $100,000–$500,000; based on value of promotional prizes
- Minimum Price: $1,000; credit-based
What Is a California Telephonic Seller Bond?
A California telephonic seller bond, or telemarketing bond, protects consumers from financial harm caused by illegal telemarketing practices. All telephonic solicitors need a surety bond to register with the state.
Bond Coverage Requirements for California Telephone Solicitors
Under California Business and Professions Code Section 17511.12, California telephone solicitors must file a $100,000 surety bond with the Attorney General.
However, if you offer promotional prizes valued at $500 or more, you also need to do the following:
- Get an additional bond covering the greater of the prizes’ current market value or advertised value
- Notify the Attorney General at least 10 days before the promotion begins
- Provide proof that all prizes were awarded within 45 days of the disclosed award date
How Much Do Telemarketing Bonds Cost in California?
California telephone solicitation bonds start at $1,000, or 1% of the bond amount. Your exact rate will vary based on your coverage and credit score. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a California Telephonic Seller Bond Work?
Like all surety bonds, this bond is a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| Principal | The telephonic seller purchasing the bond |
| Obligee | The Attorney General's Office requiring the bond |
| Surety | The issuing surety provider |
If you break state solicitation laws, harmed parties can file claims against your bond to recover any losses. The surety will validate the claims and pay them up to the full bond amount. However, you’re responsible for reimbursement.
How Do I Get a Telemarketing Bond?
Once you know how much coverage you need, complete the quote request form on this page. We’ll send you a personalized price within one business day!
You can pay for your bond at your convenience. We’ll email you the official bond form right after purchase.
How Do I Renew My Bond?
California phone solicitation bonds expire annually on the issue date. All you need to do is pay the annual premium to extend your bond term. We’ll send you reminders leading up to the expiration date.
Can I Make Changes to My Bond?
Yes, you can make changes to your bond by contacting your surety company. Email [email protected] with the new information, and we’ll issue a bond rider if possible.
How to Become a Telephone Solicitor in California
All telephone solicitors in California have to register with the Attorney General. First, purchase a surety bond in the required amount, depending on whether you offer high-value promotions. Then, print and complete the registration form.
Mail all materials, along with the $50 registration fee, to the address below:
California Attorney General's Office
Consumer Law Section
Attn: Telemarketing Unit
300 S. Spring St., Suite 1702
Los Angeles, CA 90013
Typically, applications take up to 20 days to process. If you hear nothing within 20 days, contact the office.
Registrations expire one year from the issue date. If any information changes before then, you must file an addendum within 10 days. Salesperson information must be updated quarterly.
What Are the Telemarketing Laws in California?
California telemarketers are only allowed to call between the hours of 8 a.m. and 9 p.m. You must also state that it’s a sales call and provide the company's information within the first 30 seconds.
Since California uses the National Do Not Call Registry, consumers can report illegal calls through the state Department of Justice. Violations can result in the revocation of your registration and fines ranging from $500 to $40,000.
