Virginia House Bill HB601

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Automatic renewal or continuous service offer to consumer; notification of expiration of free trial.

Impact

The enactment of HB601 is set to amend existing statutes in the Code of Virginia to prohibit specific misleading practices from suppliers. Suppliers are required to notify consumers of their automatic renewal terms and provide mechanisms for easy cancellation. This legislation aims to enhance consumer awareness and ensure that individuals are not charged without informed consent, thus tightening the regulations surrounding recurring charges and subscription services.

Summary

House Bill 601 focuses on consumer protection regarding automatic renewal services and continuous service offers. It mandates that any supplier offering such services must provide clear and conspicuous terms regarding these agreements before the consumer is obligated. The bill emphasizes obtaining affirmative consent from the consumer along with detailed disclosures explaining how to cancel the service. These safeguards aim to protect consumers from unexpected charges after initial trial periods.

Contention

Although HB601 has broad support aimed at consumer protection, some suppliers may argue that the stringent requirements for disclosures and consent complicate their operations. There may be concerns regarding how these regulations would affect customer retention strategies and service delivery, as businesses will now need to ensure compliance with these new rules or face potential legal repercussions. The balance between protecting consumers and ensuring business flexibility will likely be a point of discussion among stakeholders.