Virginia statute
Va. Code Ann. § 18.2-242.1 — Certain referral transactions in connection with consumer sales or leases prohibited; effect of such transactions
Current through 2026 Regular Session
Part of Article 8: Misrepresentations and Other Offenses Connected with Sales, Code of Virginia.
Full text of Va. Code Ann. § 18.2-242.1
Statutory text current through the 2026 Regular Session. This publication reproduces the text of the Code of Virginia from the official Virginia Law Portal API published by the Virginia General Assembly's Division of Legislative Automated Systems; it is not the official Code of Virginia.
(a) For the purpose of this section, the term "consumer sale or lease of goods or services" means the sale or lease of goods or services which are purchased or leased by a natural person primarily for a personal, family or household purpose, and not for resale.
(b) With respect to a consumer sale or lease of goods or services, no seller or lessor shall give or offer to give a rebate or discount or otherwise pay or offer to pay value to the buyer or lessee as an inducement for the sale or lease in return for the buyer's giving to the seller or lessor the names of prospective buyers or lessees, or otherwise aiding the seller or lessor in entering into a transaction with another buyer or lessee, if the earning of the rebate, discount, or other value is contingent upon the occurrence of any sale, lease, appointment, demonstration, interview, conference, seminar, bailment, testimonial or endorsement subsequent to the time the buyer or lessee enters into the agreement of sale or lease.
(c) Agreements made in whole or in part pursuant to a referral transaction as above described shall be void and unenforceable by the seller or lessor. The buyer or lessee shall be entitled to retain the goods, services or money received pursuant to a referral transaction without obligation to make any further or future payments of any sort on the transaction total, or he shall be entitled to avoid the transaction and to recover from the seller or lessor any sums paid to the seller or lessor pursuant to the transaction.
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