Heightened Scrutiny in Virginia and the Future of PLCAA Protections

Summary — The federal Protection of Lawful Commerce in Arms Act (PLCAA) provides liability protections for firearms industry members, subject to several statutory exceptions. Virginia’s new Firearm Industry Accountability Act, effective July 1, 2026, creates additional compliance requirements for firearms manufacturers, distributors and dealers operating in the state.

Firearms industry members operating in or selling into Virginia face a rapidly evolving legal and regulatory landscape. The Virginia Firearm Industry Accountability Act (SB 27/HB 21) (“FIAA”), signed by Governor Abigail Spanberger in April, grants the Office of the Attorney General sweeping new authority to investigate and bring civil enforcement actions against firearms industry members suspected of failing to meet newly established standards of responsible conduct. The new law takes effect July 1, 2026. At the same time, litigation trends nationwide continue to test the boundaries of the Protection of Lawful Commerce in Arms Act (PLCAA), the federal statute that has long served as the industry’s principal civil liability shield. This alert examines these developments and offers practical guidance for industry participants seeking to manage their legal exposure.

Overview of PLCAA Protections and Their Limitations

The PLCAA, 15 U.S.C. §§ 7901–7903, provides firearms manufacturers, distributors, dealers, and trade associations with broad protection from civil liability arising from the criminal or unlawful misuse of firearms by third parties. However, PLCAA does not provide blanket immunity. The statute contains several critical exceptions that preserve plaintiffs’ ability to bring claims — most notably for (1) knowing transfers to persons who will use a firearm in a crime, (2) negligent entrustment (e.g., failing to identify a straw purchase), and (3) knowing violations of state or federal statutes applicable to the sale or marketing of firearms that proximately cause harm. These exceptions are the subject of increasing litigation and legislative activity nationwide, and industry participants should not assume that the PLCAA alone will insulate them from legal exposure.

For a more detailed discussion of the PLCAA and its limitations, see our earlier client alert: “Lawsuit ‘Immunity’ for Firearms Industry Members: What the Protection of Lawful Commerce in Arms Act Really Says”.

The “Reasonable Controls” Standard

By enacting the FIAA, Virginia is following a growing number of states that have enacted “reasonable controls” or “responsible conduct” legislation that imposes affirmative compliance obligations on firearms industry members. New York, New Jersey, Delaware, California and others have each adopted or are considering statutes requiring gun industry members to refrain from conduct that is “unlawful” or “unreasonable under all the circumstances” and that “knowingly or recklessly create[s], maintain[s], or contribute[s] to a public nuisance” through the sale, manufacturing, distribution, importing, or marketing of firearms-related products.

Virginia’s FIAA adopts a similar framework, requiring industry members to implement business practices aimed at preventing the transfer of firearms to traffickers, individuals at risk of using a firearm to harm others or straw purchasers. The practical significance of these statutes is twofold: first, they create independent state-law causes of action that can be pursued by attorneys general and, in some cases, private plaintiffs; and second, a violation of a state “reasonable controls” statute may itself constitute a predicate exception under the PLCAA’s knowing-violation-of-law provision, thereby stripping the industry member of its federal statutory shield. Courts and regulators are actively interpreting what constitutes “reasonable” conduct, and the standard is evolving in a direction that demands more — not less — from industry participants.

Recent Legal and Regulatory Developments in Virginia

Virginia has emerged as one of the most active states in firearms regulation. During the 2026 legislative session, the General Assembly passed more than 20 bills relating to gun control and gun safety, which Governor Spanberger signed into law. Among them is the FIAA, which:

• Imposes standards of conduct for firearms manufacturers, distributors and dealers operating in Virginia;
• Requires industry members to implement safeguards designed to prevent illegal sales, gun trafficking, sraw purchases and the transfer of firearms to prohibited persons;
• Grants the Attorney General authority to issue civil investigative demands when there is reasonable cause to believe an industry member is violating the standards;
• Authorizes the Attorney General to seek court injunctions and civil penalties against violators; and
• Permits the Attorney General and local attorneys to bring civil enforcement actions.
   

At a press conference on June 22, 2026, Attorney General Jay Jones announced his office’s intent to begin enforcement when the law takes effect on July 1. Jones stated: “I intend to use this new authority to seek justice for every community in Virginia that has been impacted by this issue. This law reflects a simple principle: when gun industry actors act negligently and cause harm through irresponsible or unlawful practices, they should be held accountable.” Jones specifically identified as enforcement targets dealers who “look the other way during straw purchases,” who “have failed to prevent theft,” and who “have failed to follow basic safeguards designed to keep guns out of dangerous hands,” as well as “manufacturers that market dangerous products irresponsibly, target vulnerable audiences, or facilitate the spread of ghost guns.”

The law was sponsored by Delegate Dan Helmer (D-Fairfax), who stated: “Firearm dealers in Virginia have avoided consequences when their negligence lets guns fall into the wrong hands. This negligence costs lives, and we need to hold the industry accountable.”

In addition to the Firearm Industry Accountability Act, Virginia’s 2026 legislative session produced a ban on future sales of assault weapons (HB 217/SB 749), a ban on “ghost guns” (HB 40/SB 323), storage requirements (HB 871/SB 348) and measures to require universal background checks for all transfers (HB 1525). 

Recommended Compliance Actions

In light of the new law, firearms industry members should consider the following:

Sales Practices. Retail sellers should review and strengthen point-of-sale procedures, background check protocols and suspicious transaction monitoring systems. Ensure that employees are trained to identify and refuse straw purchases and that all sales are properly documented.

Marketing Practices. All industry members should audit advertising and promotional materials to ensure they do not implicate the PLCAA’s predicate exceptions or state unfair and deceptive trade practices statutes. Avoid marketing that could be construed as targeting vulnerable audiences, glorifying unlawful use or facilitating the circumvention of firearms regulations.

Design Practices. Manufacturers should evaluate product design and safety features in light of evolving “reasonable controls” expectations and industry best practices. Manufacturers should assess whether their products incorporate appropriate safety mechanisms and do not facilitate the production or distribution of untraceable firearms or make them “readily converted” to fire more than one round for each pull of the trigger.

Know Your Customer (KYC) Policies. Implement or strengthen customer due diligence programs across the distribution chain. This includes establishing procedures for verifying the identity and eligibility of purchasers, monitoring purchasing patterns for indicators of trafficking or straw purchasing and maintaining appropriate records.

Internal Compliance Policies. Revisit and update written compliance programs, employee training protocols, and recordkeeping procedures. Compliance programs should address the specific requirements of Virginia’s new law and comparable statutes in other jurisdictions and should include regular audits and management reviews.

Insurance Coverage. Evaluate existing insurance coverage in light of the expanded enforcement environment. Consider whether additional or specialized coverage — including product liability insurance, regulatory defense coverage and directors and officers liability insurance — is warranted to address the increased risk of civil enforcement actions and private litigation.

Conclusion

The legal and regulatory landscape for the firearms industry is shifting rapidly. Industry members who wait for enforcement actions or litigation to force compliance changes risk significant financial exposure, reputational harm and potential loss of PLCAA protections. Engaging experienced counsel with the litigation experience and industry knowledge to help clients navigate this challenge is more important than ever. Industry participants, including firearms manufacturers, distributors, retailers, pawn shops and related businesses should assess their current risk exposure and develop a tailored, proactive compliance plan.