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Assembly approves AB 483 to require clearer disclosure and cap early termination fees on fixed-term installment contracts
Summary
AB 483 passed the Assembly March 6, 2025; the bill requires sellers to clearly disclose early termination fees in fixed-term installment contracts and caps those fees at levels consistent with most current contracts, supporters said. A subsequent floor vote record change was entered for one member.
The Assembly voted on March 6, 2025, to pass AB 483 (read on the floor as AB 4 83), legislation that would require sellers offering fixed-term installment contracts to disclose any early termination fee and to cap such fees at a level the sponsors said most contracts already comply with.
Assemblymember Erwin, the bill’s sponsor, told colleagues that early termination fees are often not clearly disclosed and “at times, they add up to hundreds of dollars.” Erwin said AB 483 would mandate clear disclosure of such fees before signing and would cap the fees at a level compatible with most existing contracts.
The bill passed the Assembly on a roll call of 43 ayes and 11 noes. Later on the record the clerk noted a vote change: Assemblymember McKenner’s vote on AB 483 was recorded as changed from aye to not voting; the floor record reflects that change in the official tally notation following the roll call.
Votes at the roll call: Ayes 43, Noes 11. Post-roll-call change recorded: Assemblymember McKenner listed as “not voting,” changed from an initial aye on AB 483.
The floor debate focused on consumer transparency and the harm of undisclosed termination fees; the Assembly did not provide detailed regulatory or enforcement mechanisms on the floor during initial passage.
