Early Termination Fee (ETF)
A penalty charged for canceling a contract before its end date.
📖 What It Means
An Early Termination Fee (ETF) is a charge imposed when you cancel a contract-based subscription before the agreed-upon end date. Common in telecom, gym, and software subscriptions (famously, Adobe Creative Cloud). ETFs can range from $50 to several hundred dollars. However, many ETFs are challengeable under consumer protection laws, especially when the contract terms were not clearly disclosed.
✅ Key Points
- 1Common in telecom ($150-$350), gyms ($50-$200), and software (50% remaining)
- 2California AB-390 may void ETF for automatic renewal contracts
- 3FTC requires clear disclosure of ETF before purchase
- 4Some states cap ETF amounts or require pro-rating
- 5ETF may be waived by retention department — always negotiate
💡 How to Use This
Before paying an ETF, check if California AB-390 applies (if you're a CA resident). Many companies will waive the ETF if you threaten an FTC complaint. Always negotiate with the retention department first.
Find Your Service →⚖️ Legal Citation
Varies by state — California AB-390, state consumer protection statutesUse this citation in your dispute letters for legal weight.
🔗 Related Terms
Ready to fight back?
Use our free templates with Early Termination Fee (ETF) citations built in.