"California has enacted new legislation that aims to limit companies from charging consumers "exorbitant" fees to cancel fixed-term contracts."
""Too many Californians have been shocked by outrageous early termination fees when they try to end an installment subscription early," California assembly member, Jacqui Irwin, said in a press release."
""With AB 483, Californians will know exactly what type of termination fees they may have to pay - and those fees will never exceed a fair limit. Keeping these agreements transparent and predictable is a win for consumers across the state.""
Assembly Bill 483, signed by Governor Gavin Newsom, imposes transparency requirements and limits early termination fees for fixed-term installment contracts. The law bans hiding early termination fee disclosures in fine print or obscured hyperlinks and caps the total fee at 30 percent of the contract’s total cost. The measure targets installment plans that mimic monthly subscriptions but lock consumers into annual commitments with steep cancellation penalties. The goal is to make fee comparisons easier for consumers and reduce the financial burden of ending contracts early. The measure also calls out FCC actions and references a federal lawsuit against Adobe over alleged hidden cancellation fees.
Read at The Verge
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