AB 483: Fixed term installment contracts: early termination fees.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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.

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.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 10, 2025Chaptered by Secretary of State - Chapter 557, Statutes of 2025.
2. October 10, 2025Approved by the Governor.
3. September 22, 2025Enrolled and presented to the Governor at 3 p.m.
4. September 10, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3219.).
5. September 9, 2025In Assembly. Concurrence in Senate amendments pending.
6. September 9, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2663.).
7. September 4, 2025Read second time. Ordered to third reading.
8. September 3, 2025Read third time and amended. Ordered to second reading.
9. August 20, 2025Read second time. Ordered to third reading.
10. August 19, 2025Read third time and amended. Ordered to second reading.
11. June 26, 2025Read second time. Ordered to third reading.
12. June 25, 2025From committee: Do pass. (Ayes 11. Noes 1.) (June 24).