Who is exempt from Virginia's auto-renewal and click-to-cancel law?
Quick answer
Only four groups. Virginia's auto-renewal chapter does not apply to: services from a business with a local government franchise or a State Corporation Commission authorization as a public service company or utility; services regulated by the SCC, the FCC or FERC; banks, bank holding companies, credit unions and other licensed financial institutions (and their affiliates); and insurers regulated under Title 38.2 (Va. Code 59.1-207.48). Gyms, software, boxes, apps and other subscriptions are not on the list.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Utilities and franchises | Any service provided by a seller or affiliate doing business under a franchise issued by a political subdivision, or a license, franchise or certificate from the State Corporation Commission to a public service company or public utility under Title 56 (59.1-207.48(1)) | Va. Code 59.1-207.48 |
| Federally or SCC-regulated services | Any service provided by a seller or affiliate regulated by the State Corporation Commission, the Federal Communications Commission or the Federal Energy Regulatory Commission (59.1-207.48(2)) | Va. Code 59.1-207.48 |
| Financial institutions | A bank, bank holding company, or a subsidiary or affiliate of either, or a credit union or other financial institution licensed under federal or state law (59.1-207.48(3)) | Va. Code 59.1-207.48 |
| Insurers | Any insurer or entity regulated under Title 38.2, or an affiliate (59.1-207.48(4)) | Va. Code 59.1-207.48 |
| Who is covered | Any "seller": a person selling, offering, charging for or otherwise marketing a good or service with automatic renewal or continuous service features (59.1-207.45) | Va. Code 59.1-207.45 |
| Who is protected | "Consumer" means an individual buying for personal, family or household purposes, or a small business buying for business purposes (59.1-207.45) | Va. Code 59.1-207.45 |
| 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 there a small-business exemption for sellers?
No. The exemptions in 59.1-207.48 are about the type of seller (utilities, regulated telecom and energy, financial institutions, insurers), not its size. A small seller with a subscription is still covered.
Are gyms, apps and subscription boxes exempt?
No. They are not in any of the four exemptions, so the sign-up disclosures, affirmative consent, acknowledgment, cancellation and notice rules in 59.1-207.46 apply when they sell to Virginia consumers.
Does an exempt affiliate make my company exempt?
Only in the ways the statute says. The exemptions cover services provided by a seller or its affiliate where the seller or affiliate holds the franchise or is regulated as listed, banks and their subsidiaries or affiliates, and insurers and their affiliates (59.1-207.48). Check your own structure with counsel.
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What else do people ask?
Does the law cover sales to businesses?
Yes, to small businesses as Virginia defines them (250 or fewer employees, or $10 million or less in average annual gross receipts), because they count as "consumers" (59.1-207.45).
Do month-to-month plans count?
Yes. Continuous service, a plan that continues until the consumer cancels, is covered alongside automatic renewal (59.1-207.45).
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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