A. It shall be unlawful to notify a person that he will receive a gift, prize or item of value and that as a condition of receiving the gift, prize or item of value he will be required to pay any money, or purchase or lease (including rent) any goods or services, if any one or more of the following conditions exist:

Terms Used In Virginia Code 59.1-420

  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Handling charge: means any charge, fee or sum of money which is paid by a consumer to receive a prize, gift or any item of value including, but not limited to, promotional fees, redemption fees, registration fees or delivery costs. See Virginia Code 59.1-415
  • item: means any item or service with monetary value. See Virginia Code 59.1-415
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: means any natural person, corporation, trust, partnership, association and any other legal entity. See Virginia Code 59.1-415

1. The shipping charge exceeds:

a. The cost of postage or the charge of a delivery service in the business of delivering goods of like size, weight, and kind for shipping the gift, prize or item of value from the geographic area in which the gift, prize or item of value is being distributed; or

b. The exact amount for shipping paid to an independent fulfillment house or an independent supplier, either of which is in the business of shipping goods for shippers other than the offeror of the gift, prize or item of value; or

2. The handling charge exceeds the lesser of five dollars or the actual cost of handling.

B. This section shall apply to all offers of prizes, gifts or items of value covered by this chapter.

1989, c. 689.