California Internet and Cable Bulk-Billing Opt Out (AB 1414, 2026 update)

If you bundle an internet, cable, or satellite subscription into rent or charge it as a mandatory add on, California tenants now have a real opt out. AB 1414 takes effect January 1, 2026.

What it requires

For tenancies starting, renewing, or continuing month to month on or after January 1, 2026, a landlord who bulk bills a third-party internet, cellular, or satellite subscription to tenants must let a tenant decline the service.

This does not ban bulk billing outright. Bundling an internet package into the rent is still allowed. What changes is that a tenant who does not want it can say no, and you have to honor that.

What happens if you charge anyway

If you charge a tenant for the bundled service after a valid opt out, the tenant can deduct the cost from rent. The law also includes an anti-retaliation provision, so treating an opt-out tenant differently, whether through fees, notices, or anything else tied to the refusal, carries its own exposure on top of the deduction right.

Who this affects

This mostly comes up in multifamily buildings and communities where the landlord negotiated a bulk internet or cable contract with a provider and passes the cost through to every unit, sometimes folded into rent and sometimes billed as a separate mandatory line item. If you do not bulk bill any internet, cable, or satellite service, AB 1414 does not change anything for you.

What to check

If your lease or building policy bundles an internet or cable package as a mandatory charge, you need an actual opt-out process, not just a policy on paper. That means:

• Lease language that discloses the bulk-billed service and states the tenant’s right to decline it.
• A real, working way for a tenant to submit an opt out, and a record of who has.
• A billing process that actually stops charging a tenant once they have opted out, rather than relying on someone remembering to update a spreadsheet.

If your bulk billing runs through a property management or accounting system, confirm it can flag an opted-out tenant so the charge does not silently continue on the next invoice cycle.

General information, not legal advice

This page is general information, not legal advice. Rules change and your situation may differ. When in doubt, check with a California attorney.

1. Civil Code § 1942.8 (added by AB 1414, Statutes of 2025) Tenant right to opt out of a bulk-billed internet, cellular, or satellite subscription, effective January 1, 2026

Frequently asked questions

Can a California landlord still bundle internet into rent in 2026?

Yes. AB 1414 does not ban bulk billing. It requires that tenants be allowed to opt out of the bundled service, starting January 1, 2026.

What if I charge a tenant for internet after they opted out?

The tenant can deduct the cost from rent, and the law includes an anti-retaliation provision covering how you treat a tenant who declined the service.

Does AB 1414 apply if I do not bulk bill any internet or cable service?

No. It only applies to landlords who bulk bill a third-party internet, cellular, or satellite subscription to tenants.

Does the opt out apply to new leases only, or existing tenants too?

It applies to tenancies starting, renewing, or continuing month to month on or after January 1, 2026, which in practice covers most ongoing tenancies once their term renews or continues past that date.