Virginia’s recent amendments to its existing law governing auto-renewal subscriptions, effective July 1, 2026, increase requirements for subscription and auto-renewal compliance, requiring businesses with customers in the Commonwealth to make cancellation at least as easy as sign-up – or risk regulatory scrutiny, consumer complaints, and enforcement actions. During the 2026 Regular Session, the Virginia General Assembly passed HB1022/SB493, legislation amending the Virginia Consumer Protection Act’s (VCPA) framework governing automatic renewal and continuous service offers.
Overview of the Legislation
HB1022/SB493 amends Virginia Code §§ 59.1-200 and 59.1-207.45 through 59.1-207.49, mandating symmetry between enrollment and cancellation channels, by:
- Updating the definition of “clear and conspicuous” as it applies to seller disclosures;
- Replacing the term “supplier” with “seller”;
- Requiring sellers to provide a “simple” cancellation mechanism that is, at least, as easy to use as the sign-up method;
- Finding certain businesses no longer exempt from disclosure and cancellation requirements for automatic renewal or continuous service offers; and
- Eliminating companies’ protection from liability for good-faith compliance efforts.
Amended Definition of ‘Clear and Conspicuous’
HB1022/SB493 amends the definition of “clear and conspicuous” as it applies to seller disclosures and requirements to provide a simple cancellation mechanism. The current statutory definition, which, in part, requires disclosures to appear in larger type, contrasting font or color, or set off by symbols in a manner that clearly calls attention to the language, is amended to add additional parameters, particularly addressing such applicability to interactive electronic platforms, such as a website or mobile application.
‘Seller’ Replaces ‘Supplier’
HB1022/SB493 replaces the term “supplier” with “seller” and provides a standalone definition for such term. The statute previously used the term “supplier” as defined by cross-reference to § 59.1-198. These amendments sever that cross-reference and provide a definition of “seller” directly within the pertinent chapter. This new term clarifies the scope of which entity bears the obligations as outlined in these provisions and removes any interpretive ambiguity arising from the broader VCPA definition of “supplier.”
Cancellation Channel Symmetry Requirement
HB1022/SB493 requires sellers to provide a cancellation mechanism that is at least as easy to use as the method the consumer used to sign up. Cancellation must also be offered through every channel that was available for sign-up, with the exception of offers initiated in person. Compliance with federal disclosure requirements under 16 C.F.R. §§ 425.4(a)(4) and 425.6 does not discharge a seller’s obligations under these provisions. Consumers cannot be required to interact with a live or virtual agent to cancel unless this mechanism is the only way to initiate automatic renewal or continuous service offers. For telephone cancellations, the seller must promptly process the cancellation through a phone number that is answered or records messages, is available during normal business hours, and is no more costly to use than the sign-up method. Telephone cancellation calls must also be free of charge to the consumer. For subscriptions initiated in person or by print publication, sellers must offer cancellation through an interactive electronic platform or by telephone.
Key Takeaways
Any violation of these provisions constitutes a prohibited practice under the VCPA, and companies are no longer protected from liability for a “good faith effort.” Businesses offering subscriptions or recurring charges to Virginia consumers may wish to audit their enrollment and cancellation infrastructure against the new channel-symmetry requirement prior to July 1, 2026. The key considerations are: (1) through which channel(s) does the business offer enrollment; (2) a cancellation mechanism available through each of those same channels; and (3) each cancellation mechanism as easy to use as its original sign-up method.