Business and Professions Code section 17800
(a)
“Early termination fee” means an additional fee charged to a consumer as a result of a consumer’s election to apply a term or clause included in the contract that authorizes a consumer to suspend making installment payments and to end access to the good or receipt of the service before the end of the period of time during which installment payments are required to be made by the consumer.(b)
“Fixed term installment contract” means any contract for the sale of goods or the furnishing of services by a seller to a consumer for a deferred payment price payable in installments required to be made by the consumer during a fixed period of time until the price is paid in full.(c)
“Good” and “service” include tangible and intangible goods, including digital software.(d)
“Terminate” means that the consumer has elected to apply a term or clause included in the contract that authorizes a consumer to suspend making installment payments and to end access to the good or receipt of the service. “Terminate” does not include a general failure of a consumer to perform an obligation of the contract, including a failure to make installment payments.
Source:
Section 17800, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=17800. (updated Jan. 1, 2026; accessed Dec. 29, 2025).
