Remember Contractor Advertising Laws

Your CSLB-issued license number must be included in all business documents and advertisements – newspapers, radio, television, and online ads; business cards, lettering or placards on your commercial vehicle(s), telephone or other print or online directories; promotional materials and yard signs; and in business contracts. It is important to follow California contractor advertising laws (Business and Professions Code sections 7027, 7029.5, and 7030.5, and California Code of Regulations section 861) to avoid fines or disciplinary action.

Also, remember:

• Advertise Within Your Classification

  Licensed contractors are not allowed to advertise for construction work outside of the trade(s) for which they are licensed.

• Don't Advertise about Bonding

  Contractors, by law, are not allowed to advertise the fact that they are bonded; it could lead the public to believe there is a higher level of protection than might actually be the case.

• Avoid False Advertising

  It is a misdemeanor to use false, misleading or deceptive advertisements to sell clients home improvement and other services. It also is illegal to make misleading claims or advertise prices that you do not intend to honor. And remember, you cannot advertise using a company name that is different from what's on your official CSLB license.

• Be Aware of Fines or Penalties

  The civil penalty for licensees who violate contractor advertising laws can range from $100 to $5,000.

• Unlicensed Operators Can Advertise

  Unlicensed operators can legally advertise for construction work or improvements if the cost of the work (combined labor and material costs) is less than $500. However, the ad must state that they are not licensed. Unlicensed operators face fines or criminal prosecution if they advertise as a contractor in any advertising forum.

  A new law, Business and Professions Code section 7027.2, takes effect on January 1, 2015, and restricts unlicensed contractors to advertise for jobs totaling less than $500.

  View CSLB's Advertising Guidelines brochure for more information. Encourage your potential customers to check out your license status online. It's something that can separate you from your competition, especially those who aren't licensed.