Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I offer a money-back guarantee for my product or service in Virginia? What are the requirements?

Money-back Guarantee Requirements in Virginia

In Virginia, businesses can offer money-back guarantees for their products or services, but they must comply with the Virginia Consumer Protection Act (VCPA) [1.1]. The VCPA requires businesses to not engage in any deceptive or unfair trade practices, including false advertising or misrepresenting the terms of a money-back guarantee [1.1]. Therefore, businesses must ensure that their money-back guarantee policies are clear, accurate, and not misleading.

If a business offers a money-back guarantee, it must honor the terms of the guarantee. If a customer requests a refund within the specified time frame and meets the conditions of the guarantee, the business must provide a full refund [1.1].

Additional Requirements

In addition to complying with the VCPA, businesses must also comply with other state and federal laws and regulations applicable to the conduct of their business [2.1]. For example, businesses that offer money transmission services must file and continuously maintain a surety bond that meets the requirements of § 6.2-1523.3 of the Code of Virginia [3.2]. The minimum bond amount required is $25,000 [3.2].

Conclusion

In summary, businesses in Virginia can offer money-back guarantees for their products or services, but they must comply with the VCPA and ensure that their policies are clear and accurate. If a business offers a money-back guarantee, it must honor the terms of the guarantee and provide a full refund if the customer meets the conditions of the guarantee. Additionally, businesses must comply with other state and federal laws and regulations applicable to the conduct of their business, such as filing and maintaining a surety bond for money transmission services.

Source(s):
Jurisdiction

Virginia