California AB483 regulates early termination fees for fixed term installment contracts.

California AB483 adds a new chapter to the Business and Professions Code, regulating fixed term installment contracts. Effective August 1, 2026, sellers cannot charge early termination fees exceeding 30% of the total sum owed by the consumer. Contracts must disclose the total fee and calculation formula upfront. Exceptions apply to contracts governed by state or federal laws offering greater consumer protections, and home improvement contracts can charge fees up to the cost of installed goods or services. The bill also deems any waiver of its provisions contrary to public policy and void.

California AB483 regulates early termination fees for fixed term installment contracts.

California AB483 adds a new chapter to the Business and Professions Code, regulating fixed term installment contracts. Effective August 1, 2026, sellers cannot charge early termination fees exceeding 30% of the total sum owed by the consumer. Contracts must disclose the total fee and calculation formula upfront. Exceptions apply to contracts governed by state or federal laws offering greater consumer protections, and home improvement contracts can charge fees up to the cost of installed goods or services. The bill also deems any waiver of its provisions contrary to public policy and void.