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Assembly passes law to require clearer disclosure of early termination fees in installment contracts
Summary
AB 483 requires sellers using fixed‑term installment contracts to disclose early termination fees clearly before signing; the Assembly approved the measure 43‑11.
The California State Assembly on March 6 passed Assembly Bill 483, a consumer protection bill that requires sellers who use fixed‑term installment contracts to disclose any early termination fees clearly before a contract is signed.
"AB 483 addresses this consumer confusion by mandating that sellers that specifically choose early termination fees are clearly transparent on these fees prior to the contract being signed," Assemblymember Erwin said while presenting the bill, noting that early termination fees can sometimes add up to hundreds of dollars and are not always clearly disclosed.
The clerk closed the roll and reported Ayes 43, Noes 11; the measure passed. Floor remarks indicated the bill had bipartisan support in committee and aimed at improving transparency for consumers who enter short‑term installment arrangements. The floor excerpt did not include detailed enforcement mechanisms or fiscal estimates.
