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

Current Text: Enrolled: 9/12/2025 html pdf
Last Amend: 9/3/2025
Status: 9/10/2025-Senate amendments concurred in. To Engrossing and Enrolling.
Location: 9/10/2025-A. ENROLLMENT
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 act
or practice and unfair, deceptive, untrue, or misleading advertising. Current law regulates how a
contract may be extinguished and prescribes requirements 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.