AB 483 (Irwin D) Fixed term installment contracts: early termination fees.

Current Text: Enrollment: 10/10/2025 
Last Amend: 9/3/2025
Status:10/10/2025-Approved by the Governor. Chaptered by Secretary of State - Chapter 557, Statutes of 2025.
Location: 10/10/2025-A. CHAPTERED
Summary: Current law makes it unlawful for any person doing business in California and advertising to consumers in California to make any false or misleading advertising claim. Existing law makes various unfair competition practices unlawful, including any unlawful, unfair, or fraudulent business actor practice and unfair, deceptive, untrue, or misleading advertising. Current law regulates how a contract may be extinguished and prescribes equirements for the formation and cancellation of certain contracts, including dating service contracts, weight loss contracts, and home equity sales contracts. This bill would, for contracts entered into or modified on or after August 1, 2026, prohibit a seller that uses a fixed term installment contract, as defined, from charging a fee to a consumer who terminates the fixed term installment contract unless, at the time of entering the initial contract, the initial contract includes a clear and conspicuous written disclosure of the total cost of the early termination fee or the formula used to calculate the early termination fee and the highest possible early termination fee under the contract. The bill would also prohibit a seller that uses a fixed term installment contract from charging an early termination fee or any similar fee in an amount greater than 30% of the total sum for which the consumer is obligated under the contract. The bill would deem certain broadband internet providers to be in compliance with these provisions, as specified.