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

Current Text: Amended: 3/24/2025
Last Amend: 3/24/2025
Status: 3/25/2025-Re-referred to Com. on P. & C.P.
Location: 2/24/2025-A. P. & C.P.
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. Current 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 January 1, 2026, prohibit 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
an explanation of the total cost of the early termination fee or the formula used to calculate the early
termination fee, as provided.