Virginia Code § 18.2-242.1 prohibits certain referral-based transactions in consumer sales or leases, especially those where rebates or discounts are contingent on subsequent sales or activities. Any agreements made through such referral transactions are considered void and unenforceable, and consumers have the right to retain goods or recover payments. This law aims to prevent deceptive practices related to referral incentives in consumer transactions.
It covers consumer sales or leases of goods and services where rebates, discounts, or value payments are offered as incentives related to referral activities or subsequent sales.
No, agreements made through referral transactions as described are void and unenforceable by the seller or lessor.
Consumers can retain the goods or services received and are entitled to recover any payments made if the transaction was based on a prohibited referral incentive.
It applies specifically to consumer sales or leases where incentives are contingent on subsequent activities or referrals, not to all transactions generally.