AB 1414: Tenants Can Opt Out of Landlord-Arranged Internet Service

What it requires

• Let the tenant opt out of paying for any third-party internet subscription offered with the unit, whether wired, cellular, or satellite, including through a bulk-billing arrangement.
• The rule covers tenancies that start, renew, or continue month-to-month on or after January 1, 2026, so existing month-to-month tenancies are covered too.
• Bulk-billing deals are still allowed, as long as each tenant can opt out.
• If you don’t allow the opt-out, the tenant may deduct the subscription cost from rent.
• Retaliating against a tenant for opting out is prohibited, consistent with California’s anti-retaliation law (Civ. Code 1942.5).

Owner checklist

• Find any lease or building contract that bundles internet into rent or fees
• Add opt-out language to leases and renewals
• Remove the charge from the ledger for tenants who opt out
• Check bulk-billing contracts with providers for opt-out terms