IMPORTANT - Consumer Protection Act Mandatory Fees and Surcharges

IMPORTANT - Consumer Protection Act Mandatory Fees and Surcharges  

VAMA has recently learned that a piece of legislation enacted during the 2024 General Assembly session, which was intended to apply only to online purchases such as concert and event tickets, hotel reservations, car rentals, and food delivery orders (e.g., DoorDash), has now been mistakenly and/or erroneously applied to rental housing–related transactions as well.

As you may be aware, most—but not all—consumer transactions related to the Virginia Residential Landlord and Tenant Act are excluded from the Virginia Consumer Protection Act.

§ 59.1-199. Exclusions.
Nothing in this chapter shall apply to:
5. Any aspect of a consumer transaction that is subject to the Virginia Residential Landlord and Tenant Act (§ 55.1-1200 et seq.) or Chapter 14 (§ 55.1-1400 et seq.) of Title 55.1, unless the act or practice of a landlord constitutes a misrepresentation or fraudulent act or practice under § 59.1-200.

However, when you drill down to § 59.1-200, you will note that:

§ 59.1-200. Prohibited practices.
A. The following fraudulent acts or practices committed by a supplier in connection with a consumer transaction are hereby declared unlawful:

86. Violating any provision of Chapter 58 (§ 59.1-607 et seq.)

When we finally arrive at Chapter 58, it states in pertinent part:

§ 59.1-608. Mandatory fees or surcharges; disclosure required.

A. No supplier shall, in connection with a consumer transaction, advertise or display a price for goods or services without clearly and conspicuously displaying the total price, which shall include all mandatory fees or surcharges. A supplier that provides both a good and a service to consumers may comply with this section by displaying or advertising the total price of the good separately from the total price or rate charged for providing the service.

As you know, § 55.1-1204.1 of the Virginia Residential Landlord and Tenant Act requires an itemization of all charges to the tenant that comprise (i) the security deposit, (ii) the amount of rent due per payment period pursuant to the lease period, and (iii) any additional one-time charges due prior to the commencement date of the rental agreement or that will be included in the first rental payment. Although § 55.1-1204.1 does apply to the rental agreement, please note that, in our opinion, it does not likewise constitute compliance with the aforesaid sections of the Virginia Consumer Protection Act and its incorporation of the Mandatory Fees and Surcharges code sections.

Therefore, in plain English, the intent of § 59.1-608 is to require any supplier of goods or services (a lease is a good or service) to clearly display the total price for purchasing such goods or services. To that end, we strongly advise all VAMA members to consult with your advertising providers and with your counsel to ensure that your advertising complies with these cited provisions of the VCPA.

If you have additional questions, please feel free to contact the VAMA office at (804) 756-8262 or via email to patrick@vamaonline.org or erika@vamaonline.org.