Bill > AB483

This bill introduces new regulations for fixed term installment contracts to protect consumers from excessive early termination fees. Specifically, for contracts entered into or modified on or after August 1, 2026, the bill requires sellers to provide a clear and conspicuous written disclosure of either the total cost of the early termination fee or the formula used to calculate it, including the highest possible fee. The bill limits early termination fees to no more than 30% of the total contract sum and defines key terms such as "fixed term installment contract" (a contract for goods or services paid in installments over a fixed period) and "early termination fee" (an additional charge for ending the contract before its scheduled completion). The legislation applies to various types of goods and services, including digital software, and provides an exemption for broadband internet providers who comply with federal consumer requirements. The bill does not prevent consumers from returning goods upon contract termination or from paying the full remaining balance early, and it does not apply to contracts already regulated by state or federal laws that provide greater consumer protections or to home improvement contracts. Importantly, any attempt to waive the provisions of this bill would be considered void and unenforceable, emphasizing the consumer-protection intent of the legislation.

Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB483