Does Virginia's auto-renewal law protect small business customers?
Quick answer
Yes. Under Va. Code 59.1-207.45, "consumer" includes a small business that buys goods or services for business purposes, not just individuals. A small business is one at least 51% independently owned and controlled by U.S. citizens or legal residents that, with its affiliates, has 250 or fewer employees or $10 million or less in average annual gross receipts over the previous three years. B2B subscriptions sold to such firms must follow the same sign-up, consent and cancel rules.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Consumer | (i) Any individual who seeks or acquires goods, services, money or credit for personal, family or household purposes, or (ii) any small business that seeks or acquires them for business purposes (59.1-207.45) | Va. Code 59.1-207.45 |
| Small business: ownership | At least 51% independently owned and controlled by one or more individuals who are U.S. citizens or legal resident aliens (cooperatives: 51% independently controlled by members); an owner or member controls management and daily operations (59.1-207.45) | Va. Code 59.1-207.45 |
| Small business: size | Together with affiliates, 250 or fewer employees or annual gross receipts of $10 million or less averaged over the previous three years (59.1-207.45) | Va. Code 59.1-207.45 |
| Sign-up rules | Offer terms shown clearly and conspicuously before the customer is obligated, affirmative consent before charging, and a retainable acknowledgment (59.1-207.46(A)) | Va. Code 59.1-207.46 |
| Cancel rules | A cost-effective, timely, easy-to-use cancellation mechanism, at least as easy as sign-up, through each method used to sign up (59.1-207.46(B)) | Va. Code 59.1-207.46 |
| Penalty | No dollar fine inside chapter 17.8. A violation is a prohibited practice under the Virginia Consumer Protection Act (59.1-207.49). Customers: actual damages or $500, whichever is greater; willful: up to 3x damages or $1,000, plus attorneys' fees (59.1-204). State or local attorneys: civil penalty up to $2,500 per willful violation (59.1-206(A)) | Va. Code 59.1-207.49, 59.1-204, 59.1-206 |
| Last verified | November 2, 2026 | Astor Ventures |
Is the test employees or revenue?
Either. The definition says 250 or fewer employees or annual gross receipts of $10 million or less averaged over the previous three years, counted together with affiliates (59.1-207.45). Ownership and control conditions also apply.
What does this mean for a B2B SaaS seller?
If your Virginia customers include firms that meet the small-business test, your sign-up flow, consent, acknowledgment, renewal notices and cancel path for them must meet chapter 17.8, the same as for individual consumers.
Are large business customers covered?
No. A business that does not meet the small-business definition is not a "consumer" under 59.1-207.45, so chapter 17.8 does not protect it. Contract law still applies.
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What else do people ask?
Does the reminder before renewal apply to business customers too?
Yes for small-business consumers. The 30-to-60-day notice applies where a plan renews after more than 30 days and extends for more than 12 months (59.1-207.46(E)).
How do I know if a customer qualifies?
The statute gives the test but no verification method. Many sellers simply apply the same compliant flow to every Virginia customer.
What is the fine?
Chapter 17.8 has no fine of its own. Through the Virginia Consumer Protection Act, customers can recover actual damages or $500 (willful: up to 3x or $1,000) under 59.1-204, and the Attorney General or local attorneys can seek up to $2,500 per willful violation under 59.1-206.
Is this legal advice?
No. General information only.
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