Bill > AB483

This bill introduces new regulations for fixed-term installment contracts, which are agreements where consumers purchase goods or services and pay in installments over a set period. Starting August 1, 2026, the bill prohibits sellers from charging early termination fees unless the initial contract includes a clear, upfront disclosure of either the exact fee or the formula used to calculate the fee. Additionally, sellers cannot charge an early termination fee exceeding 30% of the total contract amount. The bill defines key terms like "early termination fee" and "terminate," and applies to a wide range of goods and services, including digital software. Broadband internet providers are deemed compliant if they meet certain federal consumer requirements. The legislation does not apply to contracts already regulated by state or federal laws offering greater consumer protections, nor does it cover home improvement contracts. Importantly, any attempts to waive these provisions will be considered void. The bill aims to increase transparency and protect consumers from potentially excessive fees when ending installment contracts early, ensuring that consumers are fully informed about potential termination costs before entering an agreement.

Business and Industry, Justice

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