{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1568.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1568.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1568.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1568.html"}],"law_id":85096,"edition_id":1,"section_id":85096,"structure_id":15134,"section_number":"46.2-1568","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts, extended service contracts or extended maintenance plans, financing, or leasing prohibited; penalty","history":"1988, c. 865, \u00a7 46.1-550.5:26; 1989, c. 727; 1995, cc. 767, 816; 2001, c. 149; 2005, c. 906; 2015, c. 236.","full_text":"A\n\nIt shall be unlawful for any manufacturer or distributor, or any officer, agent, representative, or affiliate of either to coerce or attempt to coerce any retail motor vehicle dealer or prospective retail motor vehicle dealer in the Commonwealth to (i) offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor or affiliate of either or (ii) sell, assign, or transfer any retail installment sales contract or lease obtained by the dealer in connection with the sale or lease by him in the Commonwealth of motor vehicles manufactured or sold by the manufacturer or distributor, to a specified finance company or class of finance companies, affiliate, leasing company or class of leasing companies, or any other specified persons by any of the following:1\n\nBy any statement, suggestion, promise, or threat that the manufacturer or distributor will in any manner benefit or injure the dealer, whether the statement, suggestion, threat, or promise is express or implied or made directly or indirectly.2\n\nBy any act that will benefit or injure the dealer.3\n\nBy any contract, or any express or implied offer of contract, made directly or indirectly to the dealer, for handling the motor vehicle on the condition that the dealer shall offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor or that the dealer sell, assign, or transfer his retail installment sales contract on or lease of the vehicle, in the Commonwealth, to a specified finance company or class of finance companies, leasing company or class of leasing companies, or any other specified person.4\n\nBy any express or implied statement or representation made directly or indirectly that the dealer is under any obligation whatsoever to offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor or to sell, assign, or transfer any of his retail sales contracts or leases in the Commonwealth on motor vehicles manufactured or sold by the manufacturer or distributor to a finance company or class of finance companies, leasing company or class of leasing companies, or other specified person, because of any relationship or affiliation between the manufacturer or distributor and the finance company or companies, leasing company or leasing companies, or the specified person or persons.B\n\nAny such statements, threats, promises, acts, contracts, or offers of contracts, when their effect may be to lessen or eliminate competition or tend to create a monopoly, are declared unfair trade practices and unfair methods of competition and are prohibited.C\n\nTo further avoid any acts or practices, the effect of which may be to lessen or eliminate competition, it shall be unlawful for any manufacturer or distributor, or any officer, agent, or representative thereof, or any person or company affiliated therewith, to condition the provision of lead information to a dealer upon the agreement of the dealer to sell or lease a vehicle to the prospective customer only if the financing or leasing connected with the transaction is effected through a specified finance company or class of finance companies or leasing company or class of leasing companies. For the purposes of this section, “lead information” means information concerning a prospective customer who contacts or is contacted by the manufacturer or distributor or any person or company affiliated therewith concerning the manufacturer’s or distributor’s products. The provisions of this subsection, however, shall not prohibit a manufacturer or distributor from so conditioning the provision of lead information concerning any prospective customer who qualifies for any manufacturer-sponsored or distributor-sponsored factory employee, factory retiree, or factory vendor new vehicle purchase program.D\n\nIt shall be unlawful for any manufacturer or distributor or any affiliate thereof to coerce or require a dealer that is a franchisee of the manufacturer or distributor to sell products sponsored, sold, or offered by the manufacturer, distributor, or affiliate in connection with sales of vehicles whether or not in connection with any retail installment sales contract or lease; however, this subsection shall not apply to used motor vehicles sold under a manufacturer used vehicle certification program. For purposes of this section, the refusal by an affiliate of a manufacturer or distributor to accept assignment of a retail installment sales contract or lease solely because it includes a product in connection with the sale of the vehicle not sponsored, sold, or offered by the manufacturer or distributor, or any affiliate thereof, shall be unlawful; but an affiliate of a manufacturer or distributor may establish standards for products in connection with a sale of a vehicle to be included in retail installment sales contracts or leases it will accept, provided the standards, including the establishment of maximum prices for products, are equally enforceable and enforced with respect to products in connection with the sale of a vehicle sponsored, sold, or offered by the manufacturer, distributor, or affiliate and products that are not. Nothing in this section prohibits a manufacturer, distributor, or affiliate from offering dealer or consumer incentive programs directly related to the sale of products sponsored, sold, or offered by the manufacturer, distributor, or affiliate whether or not in connection with any retail installment sales contract or lease. A dealer that chooses not to participate in these programs shall not be penalized as a result. Non-payment of the incentive due to non-participation in the incentive programs directly related to the sale of products sponsored, sold, or offered by the manufacturer, distributor, or affiliate by the dealer shall not qualify as a penalty.E\n\nAny person aggrieved by an action prohibited by this section may seek a hearing, pursuant to § 46.2-1573, against any manufacturer or distributor licensed under this title.F\n\nNothing contained in this section shall prohibit a manufacturer or distributor from offering or providing incentive benefits or bonus programs to a retail motor vehicle dealer or prospective retail motor vehicle dealer in the Commonwealth who makes the voluntary decision to offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed, or sponsored by the manufacturer or distributor or to sell, assign, or transfer any retail installment sale or lease by him in the Commonwealth of motor vehicles manufactured or sold by the manufacturer or distributor to a specified finance company or leasing company controlled by or affiliated with the manufacturer or distributor.","order_by":null,"text":{"0":{"id":304971,"text":"It shall be unlawful for any manufacturer or distributor, or any officer, agent, representative, or affiliate of either to coerce or attempt to coerce any retail motor vehicle dealer or prospective retail motor vehicle dealer in the Commonwealth to (i) offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor or affiliate of either or (ii) sell, assign, or transfer any retail installment sales contract or lease obtained by the dealer in connection with the sale or lease by him in the Commonwealth of motor vehicles manufactured or sold by the manufacturer or distributor, to a specified finance company or class of finance companies, affiliate, leasing company or class of leasing companies, or any other specified persons by any of the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":304972,"text":"By any statement, suggestion, promise, or threat that the manufacturer or distributor will in any manner benefit or injure the dealer, whether the statement, suggestion, threat, or promise is express or implied or made directly or indirectly.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":304973,"text":"By any act that will benefit or injure the dealer.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":304974,"text":"By any contract, or any express or implied offer of contract, made directly or indirectly to the dealer, for handling the motor vehicle on the condition that the dealer shall offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor or that the dealer sell, assign, or transfer his retail installment sales contract on or lease of the vehicle, in the Commonwealth, to a specified finance company or class of finance companies, leasing company or class of leasing companies, or any other specified person.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":304975,"text":"By any express or implied statement or representation made directly or indirectly that the dealer is under any obligation whatsoever to offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer or distributor or to sell, assign, or transfer any of his retail sales contracts or leases in the Commonwealth on motor vehicles manufactured or sold by the manufacturer or distributor to a finance company or class of finance companies, leasing company or class of leasing companies, or other specified person, because of any relationship or affiliation between the manufacturer or distributor and the finance company or companies, leasing company or leasing companies, or the specified person or persons.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":304976,"text":"Any such statements, threats, promises, acts, contracts, or offers of contracts, when their effect may be to lessen or eliminate competition or tend to create a monopoly, are declared unfair trade practices and unfair methods of competition and are prohibited.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4","next_prefix":"C"},"6":{"id":304977,"text":"To further avoid any acts or practices, the effect of which may be to lessen or eliminate competition, it shall be unlawful for any manufacturer or distributor, or any officer, agent, or representative thereof, or any person or company affiliated therewith, to condition the provision of lead information to a dealer upon the agreement of the dealer to sell or lease a vehicle to the prospective customer only if the financing or leasing connected with the transaction is effected through a specified finance company or class of finance companies or leasing company or class of leasing companies. For the purposes of this section, “lead information” means information concerning a prospective customer who contacts or is contacted by the manufacturer or distributor or any person or company affiliated therewith concerning the manufacturer’s or distributor’s products. The provisions of this subsection, however, shall not prohibit a manufacturer or distributor from so conditioning the provision of lead information concerning any prospective customer who qualifies for any manufacturer-sponsored or distributor-sponsored factory employee, factory retiree, or factory vendor new vehicle purchase program.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"7":{"id":304978,"text":"It shall be unlawful for any manufacturer or distributor or any affiliate thereof to coerce or require a dealer that is a franchisee of the manufacturer or distributor to sell products sponsored, sold, or offered by the manufacturer, distributor, or affiliate in connection with sales of vehicles whether or not in connection with any retail installment sales contract or lease; however, this subsection shall not apply to used motor vehicles sold under a manufacturer used vehicle certification program. For purposes of this section, the refusal by an affiliate of a manufacturer or distributor to accept assignment of a retail installment sales contract or lease solely because it includes a product in connection with the sale of the vehicle not sponsored, sold, or offered by the manufacturer or distributor, or any affiliate thereof, shall be unlawful; but an affiliate of a manufacturer or distributor may establish standards for products in connection with a sale of a vehicle to be included in retail installment sales contracts or leases it will accept, provided the standards, including the establishment of maximum prices for products, are equally enforceable and enforced with respect to products in connection with the sale of a vehicle sponsored, sold, or offered by the manufacturer, distributor, or affiliate and products that are not. Nothing in this section prohibits a manufacturer, distributor, or affiliate from offering dealer or consumer incentive programs directly related to the sale of products sponsored, sold, or offered by the manufacturer, distributor, or affiliate whether or not in connection with any retail installment sales contract or lease. A dealer that chooses not to participate in these programs shall not be penalized as a result. Non-payment of the incentive due to non-participation in the incentive programs directly related to the sale of products sponsored, sold, or offered by the manufacturer, distributor, or affiliate by the dealer shall not qualify as a penalty.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"8":{"id":304979,"text":"Any person aggrieved by an action prohibited by this section may seek a hearing, pursuant to § 46.2-1573, against any manufacturer or distributor licensed under this title.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"9":{"id":304980,"text":"Nothing contained in this section shall prohibit a manufacturer or distributor from offering or providing incentive benefits or bonus programs to a retail motor vehicle dealer or prospective retail motor vehicle dealer in the Commonwealth who makes the voluntary decision to offer to sell or sell any extended service contract or extended maintenance plan offered, sold, backed, or sponsored by the manufacturer or distributor or to sell, assign, or transfer any retail installment sale or lease by him in the Commonwealth of motor vehicles manufactured or sold by the manufacturer or distributor to a specified finance company or leasing company controlled by or affiliated with the manufacturer or distributor.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":15134,"edition_id":1,"name":"Franchises","identifier":"7","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:52:26","date_modified":"2026-06-26 03:52:26","permalink":{"id":231519,"object_type":"structure","relational_id":15134,"identifier":"7","token":"46.2\/IV\/15\/7","url":"\/46.2\/IV\/15\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13356,"edition_id":1,"name":"Motor Vehicle Dealers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":13355,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231067,"object_type":"structure","relational_id":13356,"identifier":"15","token":"46.2\/IV\/15","url":"\/46.2\/IV\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13355,"edition_id":1,"name":"Dealers and Driver Training Schools","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12770,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231065,"object_type":"structure","relational_id":13355,"identifier":"IV","token":"46.2\/IV","url":"\/46.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12770,"edition_id":1,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":225289,"object_type":"structure","relational_id":12770,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81977,"structure_id":15134,"section_number":"46.2-1566","catch_line":"Filing of franchises","url":"\/46.2-1566\/","token":"46.2\/IV\/15\/7\/46.2-1566","metadata":false},{"id":75377,"structure_id":15134,"section_number":"46.2-1567","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1567\/","token":"46.2\/IV\/15\/7\/46.2-1567","metadata":false},{"id":85096,"structure_id":15134,"section_number":"46.2-1568","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts, extended service contracts or extended maintenance plans, financing, or leasing prohibited; penalty","url":"\/46.2-1568\/","token":"46.2\/IV\/15\/7\/46.2-1568","metadata":false},{"id":74199,"structure_id":15134,"section_number":"46.2-1568.1","catch_line":"Discrimination by manufacturers or distributors prohibited","url":"\/46.2-1568.1\/","token":"46.2\/IV\/15\/7\/46.2-1568.1","metadata":false},{"id":60913,"structure_id":15134,"section_number":"46.2-1569","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of vehicles, parts, and accessories","url":"\/46.2-1569\/","token":"46.2\/IV\/15\/7\/46.2-1569","metadata":false},{"id":57658,"structure_id":15134,"section_number":"46.2-1569.1","catch_line":"Manufacturer or distributor right of first refusal","url":"\/46.2-1569.1\/","token":"46.2\/IV\/15\/7\/46.2-1569.1","metadata":false},{"id":85388,"structure_id":15134,"section_number":"46.2-1570","catch_line":"Discontinuation of distributors","url":"\/46.2-1570\/","token":"46.2\/IV\/15\/7\/46.2-1570","metadata":false},{"id":60902,"structure_id":15134,"section_number":"46.2-1571","catch_line":"Recall, warranty, maintenance and sales incentive obligations","url":"\/46.2-1571\/","token":"46.2\/IV\/15\/7\/46.2-1571","metadata":false},{"id":67472,"structure_id":15134,"section_number":"46.2-1572","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1572\/","token":"46.2\/IV\/15\/7\/46.2-1572","metadata":false},{"id":75339,"structure_id":15134,"section_number":"46.2-1572.1","catch_line":"Ownership of service facilities","url":"\/46.2-1572.1\/","token":"46.2\/IV\/15\/7\/46.2-1572.1","metadata":false},{"id":75995,"structure_id":15134,"section_number":"46.2-1572.2","catch_line":"Mediation of disputes","url":"\/46.2-1572.2\/","token":"46.2\/IV\/15\/7\/46.2-1572.2","metadata":false},{"id":65117,"structure_id":15134,"section_number":"46.2-1572.3","catch_line":"Waiver prohibited","url":"\/46.2-1572.3\/","token":"46.2\/IV\/15\/7\/46.2-1572.3","metadata":false},{"id":74526,"structure_id":15134,"section_number":"46.2-1572.4","catch_line":"Manufacturer or distributor use of performance standards","url":"\/46.2-1572.4\/","token":"46.2\/IV\/15\/7\/46.2-1572.4","metadata":false},{"id":69981,"structure_id":15134,"section_number":"46.2-1573","catch_line":"Hearings and other remedies; civil penalties","url":"\/46.2-1573\/","token":"46.2\/IV\/15\/7\/46.2-1573","metadata":false},{"id":84529,"structure_id":15134,"section_number":"46.2-1573.01","catch_line":"Recovery of attorney's fees","url":"\/46.2-1573.01\/","token":"46.2\/IV\/15\/7\/46.2-1573.01","metadata":false},{"id":67893,"structure_id":15134,"section_number":"46.2-1573.02","catch_line":"Limited right of dealers to sell new motor vehicles following termination of franchise","url":"\/46.2-1573.02\/","token":"46.2\/IV\/15\/7\/46.2-1573.02","metadata":false}],"previous_section":{"id":75377,"structure_id":15134,"section_number":"46.2-1567","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1567\/","token":"46.2\/IV\/15\/7\/46.2-1567","metadata":false},"next_section":{"id":74199,"structure_id":15134,"section_number":"46.2-1568.1","catch_line":"Discrimination by manufacturers or distributors prohibited","url":"\/46.2-1568.1\/","token":"46.2\/IV\/15\/7\/46.2-1568.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1568\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapter 865 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1989, chapter 727; in 1995, chapters 767<\/a> and 816<\/a>; in 2001, chapter 149<\/a>; in 2005, chapter 906<\/a>; in 2015, chapter 236<\/a>.<\/p>","references":false,"refers_to":[{"id":69981,"section_number":"46.2-1573","catch_line":"Hearings and other remedies; civil penalties","order_by":null,"url":"\/46.2-1573\/"}],"permalink":{"id":231529,"object_type":"law","relational_id":85096,"identifier":"46.2-1568","token":"46.2\/IV\/15\/7\/46.2-1568","url":"\/46.2-1568\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1568\/","token":"46.2\/IV\/15\/7\/46.2-1568","dublin_core":{"Title":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts, extended service contracts or extended maintenance plans, financing, or leasing prohibited; penalty","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1568","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> It shall be unlawful for any manufacturer<\/span> or distributor<\/span>, or any officer, agent<\/span>, representative, or affiliate<\/span> of either to coerce or attempt to coerce any retail motor vehicle dealer<\/span> or prospective retail motor vehicle dealer<\/span> in the Commonwealth to (i) offer to sell or sell any extended service contract<\/span> or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer<\/span> or distributor<\/span> or affiliate<\/span> of either or (ii) sell, assign, or transfer any retail installment sales<\/span> contract<\/span> or lease obtained by the dealer in connection with the sale or lease by him in the Commonwealth of motor vehicles<\/span> manufactured or sold by the manufacturer<\/span> or distributor<\/span>, to a specified finance company or class of finance companies, affiliate<\/span>, leasing company or class of leasing companies, or any other specified persons by any of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> By any statement, suggestion, promise, or threat that the manufacturer<\/span> or distributor<\/span> will in any manner benefit or injure the dealer, whether the statement, suggestion, threat, or promise is express or implied or made directly or indirectly. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> By any act that will benefit or injure the dealer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> By any contract<\/span>, or any express or implied offer of contract<\/span>, made directly or indirectly to the dealer, for handling the motor vehicle on the condition that the dealer shall offer to sell or sell any extended service contract<\/span> or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer<\/span> or distributor<\/span> or that the dealer sell, assign, or transfer his retail installment sales<\/span> contract<\/span> on or lease of the vehicle, in the Commonwealth, to a specified finance company or class of finance companies, leasing company or class of leasing companies, or any other specified person. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> By any express or implied statement or representation made directly or indirectly that the dealer is under any obligation whatsoever to offer to sell or sell any extended service contract<\/span> or extended maintenance plan offered, sold, backed by, or sponsored by the manufacturer<\/span> or distributor<\/span> or to sell, assign, or transfer any of his retail sales<\/span> contracts<\/span> or leases in the Commonwealth on motor vehicles<\/span> manufactured or sold by the manufacturer<\/span> or distributor<\/span> to a finance company or class of finance companies, leasing company or class of leasing companies, or other specified person, because of any relationship or affiliation between the manufacturer<\/span> or distributor<\/span> and the finance company or companies, leasing company or leasing companies, or the specified person or persons. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any such statements, threats, promises, acts, contracts<\/span>, or offers of contracts<\/span>, when their effect may be to lessen or eliminate competition or tend to create a monopoly, are declared unfair trade practices and unfair methods of competition and are prohibited. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> To further avoid any acts or practices, the effect of which may be to lessen or eliminate competition, it shall be unlawful for any manufacturer<\/span> or distributor<\/span>, or any officer, agent<\/span>, or representative thereof, or any person or company affiliated therewith, to condition the provision of lead information<\/span> to a dealer upon the agreement of the dealer to sell or lease a vehicle to the prospective customer only if the financing or leasing connected with the transaction is effected through a specified finance company or class of finance companies or leasing company or class of leasing companies. For the purposes of this section, “lead information<\/span>” means information concerning a prospective customer who contacts or is contacted by the manufacturer<\/span> or distributor<\/span> or any person or company affiliated therewith concerning the manufacturer<\/span>’s or distributor<\/span>’s products. The provisions of this subsection, however, shall not prohibit a manufacturer<\/span> or distributor<\/span> from so conditioning the provision of lead information<\/span> concerning any prospective customer who qualifies for any manufacturer<\/span>-sponsored or distributor<\/span>-sponsored factory employee, factory retiree, or factory vendor new<\/span> vehicle purchase program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> It shall be unlawful for any manufacturer<\/span> or distributor<\/span> or any affiliate<\/span> thereof to coerce or require a dealer that is a franchisee of the manufacturer<\/span> or distributor<\/span> to sell products sponsored, sold, or offered by the manufacturer<\/span>, distributor<\/span>, or affiliate<\/span> in connection with sales of vehicles whether or not in connection with any retail installment sales<\/span> contract<\/span> or lease; however, this subsection shall not apply to used motor vehicles<\/span> sold under a manufacturer<\/span> used vehicle certification program. For purposes of this section, the refusal by an affiliate<\/span> of a manufacturer<\/span> or distributor<\/span> to accept assignment of a retail installment sales<\/span> contract<\/span> or lease solely because it includes a product in connection with the sale of the vehicle not sponsored, sold, or offered by the manufacturer<\/span> or distributor<\/span>, or any affiliate<\/span> thereof, shall be unlawful; but an affiliate<\/span> of a manufacturer<\/span> or distributor<\/span> may establish standards for products in connection with a sale of a vehicle to be included in retail installment sales<\/span> contracts<\/span> or leases it will accept, provided the standards, including the establishment of maximum prices for products, are equally enforceable and enforced with respect to products in connection with the sale of a vehicle sponsored, sold, or offered by the manufacturer<\/span>, distributor<\/span>, or affiliate<\/span> and products that are not. Nothing in this section prohibits a manufacturer<\/span>, distributor<\/span>, or affiliate<\/span> from offering dealer or consumer incentive programs directly related to the sale of products sponsored, sold, or offered by the manufacturer<\/span>, distributor<\/span>, or affiliate<\/span> whether or not in connection with any retail installment sales<\/span> contract<\/span> or lease. A dealer that chooses not to participate in these programs shall not be penalized as a result. Non-payment of the incentive due to non-participation in the incentive programs directly related to the sale of products sponsored, sold, or offered by the manufacturer<\/span>, distributor<\/span>, or affiliate<\/span> by the dealer shall not qualify as a penalty<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any person aggrieved by an action prohibited by this section may seek a hearing<\/span>, pursuant to § 46.2-1573<\/a>, against any manufacturer<\/span> or distributor<\/span> licensed under this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Nothing contained in this section shall prohibit a manufacturer<\/span> or distributor<\/span> from offering or providing incentive benefits or bonus programs to a retail motor vehicle dealer<\/span> or prospective retail motor vehicle dealer<\/span> in the Commonwealth who makes the voluntary decision to offer to sell or sell any extended service contract<\/span> or extended maintenance plan offered, sold, backed, or sponsored by the manufacturer<\/span> or distributor<\/span> or to sell, assign, or transfer any retail installment sale<\/span> or lease by him in the Commonwealth of motor vehicles manufactured or sold by the manufacturer<\/span> or distributor<\/span> to a specified finance company or leasing company controlled by or affiliated with the manufacturer<\/span> or distributor<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCOERCION OF RETAIL DEALER BY MANUFACTURER OR DISTRIBUTOR WITH RESPECT TO RETAIL\nINSTALLMENT SALES CONTRACTS, EXTENDED SERVICE CONTRACTS OR EXTENDED MAINTENANCE\nPLANS, FINANCING, OR LEASING PROHIBITED; PENALTY (\u00a7 46.2-1568)\n\nA. It shall be unlawful for any manufacturer or distributor, or any officer,\nagent, representative, or affiliate of either to coerce or attempt to coerce any\nretail motor vehicle dealer or prospective retail motor vehicle dealer in the\nCommonwealth to (i) offer to sell or sell any extended service contract or\nextended maintenance plan offered, sold, backed by, or sponsored by the\nmanufacturer or distributor or affiliate of either or (ii) sell, assign, or\ntransfer any retail installment sales contract or lease obtained by the dealer\nin connection with the sale or lease by him in the Commonwealth of motor\nvehicles manufactured or sold by the manufacturer or distributor, to a specified\nfinance company or class of finance companies, affiliate, leasing company or\nclass of leasing companies, or any other specified persons by any of the\nfollowing:\n\n 1. By any statement, suggestion, promise, or threat that the manufacturer or\n distributor will in any manner benefit or injure the dealer, whether the\n statement, suggestion, threat, or promise is express or implied or made\n directly or indirectly.\n\n 2. By any act that will benefit or injure the dealer.\n\n 3. By any contract, or any express or implied offer of contract, made directly\n or indirectly to the dealer, for handling the motor vehicle on the condition\n that the dealer shall offer to sell or sell any extended service contract or\n extended maintenance plan offered, sold, backed by, or sponsored by the\n manufacturer or distributor or that the dealer sell, assign, or transfer his\n retail installment sales contract on or lease of the vehicle, in the\n Commonwealth, to a specified finance company or class of finance companies,\n leasing company or class of leasing companies, or any other specified person.\n\n 4. By any express or implied statement or representation made directly or\n indirectly that the dealer is under any obligation whatsoever to offer to sell\n or sell any extended service contract or extended maintenance plan offered,\n sold, backed by, or sponsored by the manufacturer or distributor or to sell,\n assign, or transfer any of his retail sales contracts or leases in the\n Commonwealth on motor vehicles manufactured or sold by the manufacturer or\n distributor to a finance company or class of finance companies, leasing\n company or class of leasing companies, or other specified person, because of\n any relationship or affiliation between the manufacturer or distributor and\n the finance company or companies, leasing company or leasing companies, or the\n specified person or persons.\n\nB. Any such statements, threats, promises, acts, contracts, or offers of\ncontracts, when their effect may be to lessen or eliminate competition or tend\nto create a monopoly, are declared unfair trade practices and unfair methods of\ncompetition and are prohibited.\n\nC. To further avoid any acts or practices, the effect of which may be to lessen\nor eliminate competition, it shall be unlawful for any manufacturer or\ndistributor, or any officer, agent, or representative thereof, or any person or\ncompany affiliated therewith, to condition the provision of lead information to\na dealer upon the agreement of the dealer to sell or lease a vehicle to the\nprospective customer only if the financing or leasing connected with the\ntransaction is effected through a specified finance company or class of finance\ncompanies or leasing company or class of leasing companies. For the purposes of\nthis section, “lead information” means information concerning a\nprospective customer who contacts or is contacted by the manufacturer or\ndistributor or any person or company affiliated therewith concerning the\nmanufacturer’s or distributor’s products. The provisions of this\nsubsection, however, shall not prohibit a manufacturer or distributor from so\nconditioning the provision of lead information concerning any prospective\ncustomer who qualifies for any manufacturer-sponsored or distributor-sponsored\nfactory employee, factory retiree, or factory vendor new vehicle purchase\nprogram.\n\nD. It shall be unlawful for any manufacturer or distributor or any affiliate\nthereof to coerce or require a dealer that is a franchisee of the manufacturer\nor distributor to sell products sponsored, sold, or offered by the manufacturer,\ndistributor, or affiliate in connection with sales of vehicles whether or not in\nconnection with any retail installment sales contract or lease; however, this\nsubsection shall not apply to used motor vehicles sold under a manufacturer used\nvehicle certification program. For purposes of this section, the refusal by an\naffiliate of a manufacturer or distributor to accept assignment of a retail\ninstallment sales contract or lease solely because it includes a product in\nconnection with the sale of the vehicle not sponsored, sold, or offered by the\nmanufacturer or distributor, or any affiliate thereof, shall be unlawful; but an\naffiliate of a manufacturer or distributor may establish standards for products\nin connection with a sale of a vehicle to be included in retail installment\nsales contracts or leases it will accept, provided the standards, including the\nestablishment of maximum prices for products, are equally enforceable and\nenforced with respect to products in connection with the sale of a vehicle\nsponsored, sold, or offered by the manufacturer, distributor, or affiliate and\nproducts that are not. Nothing in this section prohibits a manufacturer,\ndistributor, or affiliate from offering dealer or consumer incentive programs\ndirectly related to the sale of products sponsored, sold, or offered by the\nmanufacturer, distributor, or affiliate whether or not in connection with any\nretail installment sales contract or lease. A dealer that chooses not to\nparticipate in these programs shall not be penalized as a result. Non-payment of\nthe incentive due to non-participation in the incentive programs directly\nrelated to the sale of products sponsored, sold, or offered by the manufacturer,\ndistributor, or affiliate by the dealer shall not qualify as a penalty.\n\nE. Any person aggrieved by an action prohibited by this section may seek a\nhearing, pursuant to § 46.2-1573, against any manufacturer or distributor\nlicensed under this title.\n\nF. Nothing contained in this section shall prohibit a manufacturer or\ndistributor from offering or providing incentive benefits or bonus programs to a\nretail motor vehicle dealer or prospective retail motor vehicle dealer in the\nCommonwealth who makes the voluntary decision to offer to sell or sell any\nextended service contract or extended maintenance plan offered, sold, backed, or\nsponsored by the manufacturer or distributor or to sell, assign, or transfer any\nretail installment sale or lease by him in the Commonwealth of motor vehicles\nmanufactured or sold by the manufacturer or distributor to a specified finance\ncompany or leasing company controlled by or affiliated with the manufacturer or\ndistributor.\n\nHISTORY: 1988, c. 865, \u00a7 46.1-550.5:26; 1989, c. 727; 1995, cc. 767, 816; 2001,\nc. 149; 2005, c. 906; 2015, c. 236.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}