CaliforniaFixed term installment contracts: early termination fees.
What it does
Existing 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.
More detail
Existing 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. The bill would provide that its provisions do not apply to a fixed term installment contract that is regulated by state or federal law providing greater protections to consumers, as specified, or to a home improvement contract, as defined.
This bill would make a waiver of its provisions void and unenforceable.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 10Chaptered by Secretary of State - Chapter 557, Statutes of 2025.Latest
- Oct 10Approved by the Governor Gavin Newsom.Became Law
- Sep 22Enrolled and presented to the Governor at 3 p.m.To Governor
- Sep 11
- Vote recorded AB 483 Irwin Concurrence in Senate Amendments. Result: pass.Lower
- Sep 10Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3219.).Major
- Sep 9In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB483 Irwin By Laird. Result: pass.Upper
- Sep 9Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2663.).Passed Senate
- Sep 4Read second time. Ordered to third reading.Minor
- Sep 3Read third time and amended. Ordered to second reading.Major
- Aug 20Read second time. Ordered to third reading.Minor
- Aug 19Read third time and amended. Ordered to second reading.Major
- Jun 26Read second time. Ordered to third reading.Minor
- Jun 25From committee: Do pass. (Ayes 11. Noes 1.) (June 24).Minor
- Jun 24
- Vote recorded Do pass. Result: pass.Upper
- Jun 12From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.Major
- May 7Referred to Com. on JUD.Minor
- Apr 7In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 483 Irwin Assembly Third Reading. Result: pass.Lower
- Apr 7Read third time. Passed. Ordered to the Senate. (Ayes 46. Noes 12. Page 1034.)Passed Assembly
- Apr 3Read second time. Ordered to third reading.Minor
- Apr 2From committee: Do pass. (Ayes 9. Noes 4.) (April 1).Minor
- Apr 1
- Vote recorded Do pass. Result: pass.Lower
- Mar 25Re-referred to Com. on P. & C.P.Minor
- Mar 24From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.Major
- Mar 13In committee: Hearing postponed by committee.
- Feb 24Referred to Com. on P. & C.P.Minor
- Feb 11From printer. May be heard in committee March 13.
- Feb 10Read first time. To print.Introduced