CAL LEG Nondisclosure for Refunds


On Jul. 3, CAL LEG bill to prohibit refunds based on nondisclosures.


  • CAL LEG passed bill AB 1900 on consumer refunds and nondisclosure agreements.
  • Bill Provisions
  • Creates new chapter 1.5 and section CAL LEG 3-4-1.3.5-1.5-1748.50 in Civil Code.
  • New chapter is entitled Consumer refund conditioned on nondisclosure agreement.
  • Prohibits conditioning consumer refunds on removing a review or signing agreement.
  • Makes a contract, provision in a contract, or agreement that prohibits a consumer from publishing or making statements as condition of receiving refund void/unenforceable.
  • Legislative History
  • On Jan. 23, 2024, bill introduced in Assembly; on Apr. 15, 2024, bill passed Assembly.
  • On Apr. 15, 2024, bill was introduced in Senate; on Jun. 20, 2024, bill passed Senate.
  • On Jul. 3, 2024, bill enrolled by both chambers and was presented to the governor.
  • Effectiveness
  • If enacted, bill will become effective as of Jan. 1, 2025.
  • Jul. 15, 2024 Governor Approval
  • On Jul. 15, 2024, CAL LEG governor approved AB 1900, Chapter 89 Statutes of 2024.

Regulators CAL LEG
Entity Types Corp
Reference Ch.89, 7/15/2024; Bill, AB1900, 7/4/2024; Citation: CAL LEG 3-4-1.3.5;
Functions Complaints; Compliance; Financial; Legal; Market Conduct; Operations; Privacy
Countries United States of America
Category
State
Products Corporate
Regions Am
Rule Type Final
Rule Date 7/3/2024
Effective Date 1/1/2025
Rule Id 218320
Linked to N/A
Reg. Last Update 7/15/2024
Report Section US Consumer

Last substantive update on 07/18/2024