AB 1414 seeks to ensure that California renters are not forced into paying for internet services they do not want or that do not meet their needs. It targets “bulk-billing” arrangements where landlords contract with a single provider and pass the cost to all tenants as a mandatory fee.

1. The “Right to Opt Out”

• Choice Mandate: For any tenancy starting or renewing on or after January 1, 2026, landlords must allow tenants to opt out of paying for any subscription from a third-party ISP (wired, cellular, or satellite) offered as part of the lease.
• No Penalties: Landlords cannot charge additional fees, increase rent, or decrease other services because a tenant chooses to opt out of the bundled internet.

2. Tenant Remedies & Enforcement

3. Retaliation Protections

• The bill explicitly prohibits landlords from retaliating against a tenant for exercising their right to opt out. This protection aligns with Civil Code Section 1942.5, which guards against eviction or harassment following the exercise of legal tenant rights.

4. Clarification on Bulk Services

• Voluntary Services Allowed: The law does not prohibit landlords from offering bulk internet deals to their tenants; it only prohibits making those deals mandatory.
• Competitive Markets: The goal is to foster a more competitive market and allow low-income tenants to use federal or state subsidies (like the Affordable Connectivity Program or similar initiatives) with a provider of their own choosing.

Summary Context

This bill fills a gap in state law where federal FCC rules discouraged, but did not strictly prohibit, certain “exclusive marketing” or “bulk-billing” tactics that effectively left tenants without a choice in internet providers.