Fixed term installment contracts: early termination fees.
- Limits early termination fees to 20% of the total contract cost for installment payment agreements starting in 2026.
- Requires contracts to clearly display the total termination fee or calculation formula upfront.
- Mandates that termination fee disclosures be visible without clicking additional links or tooltips.
- Exempts broadband providers who comply with federal consumer labeling requirements from these rules.
Assembly Member Irwin's consumer protection measure establishes new requirements for early termination fees in fixed-term installment contracts, requiring clear upfront disclosure of fee amounts or calculation methods and capping charges at 20% of the total contract cost.
The legislation applies to contracts entered into or modified after January 1, 2026, and requires companies to present termination fee information in an immediately visible format, without requiring consumers to click through additional links or tooltips. Companies must either state the exact fee amount or provide the calculation formula along with a sample showing the maximum possible charge. The provisions cover both tangible and intangible goods, including digital software.
Broadband internet providers who comply with federal consumer disclosure requirements, including the broadband consumer label under 47 C.F.R. § 8.2(a), receive automatic compliance status for their services whether sold individually or in bundles. The law maintains companies' ability to require the return of goods upon early contract termination while establishing the new fee limitations and disclosure standards.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 47 | 12 | 20 | 79 | PASS |
 Shannon GroveR Senator | Committee Member |  Not Contacted | |
 Brian JonesR Senator | Committee Member | Not Contacted | |
 Jacqui IrwinD Assembly Member | Bill Author | Not Contacted | |
 Mike McGuireD Senator | Committee Member | Not Contacted | |
 Eloise ReyesD Senator | Committee Member | Not Contacted |
- Limits early termination fees to 20% of the total contract cost for installment payment agreements starting in 2026.
- Requires contracts to clearly display the total termination fee or calculation formula upfront.
- Mandates that termination fee disclosures be visible without clicking additional links or tooltips.
- Exempts broadband providers who comply with federal consumer labeling requirements from these rules.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Assembly Member Irwin's consumer protection measure establishes new requirements for early termination fees in fixed-term installment contracts, requiring clear upfront disclosure of fee amounts or calculation methods and capping charges at 20% of the total contract cost.
The legislation applies to contracts entered into or modified after January 1, 2026, and requires companies to present termination fee information in an immediately visible format, without requiring consumers to click through additional links or tooltips. Companies must either state the exact fee amount or provide the calculation formula along with a sample showing the maximum possible charge. The provisions cover both tangible and intangible goods, including digital software.
Broadband internet providers who comply with federal consumer disclosure requirements, including the broadband consumer label under 47 C.F.R. § 8.2(a), receive automatic compliance status for their services whether sold individually or in bundles. The law maintains companies' ability to require the return of goods upon early contract termination while establishing the new fee limitations and disclosure standards.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 47 | 12 | 20 | 79 | PASS |
Shannon GroveR Senator | Committee Member | Not Contacted | |
Brian JonesR Senator | Committee Member | Not Contacted | |
Jacqui IrwinD Assembly Member | Bill Author | Not Contacted | |
Mike McGuireD Senator | Committee Member | Not Contacted | |
Eloise ReyesD Senator | Committee Member | Not Contacted |