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Advertising Guidelines
Notify CSLB whenever you see advertising for an unlicensed
contractor Like legitimate contractors, unlicensed operators sometimes use advertising to find new clients. Ads without license numbers or with numbers that are not issued by the CSLB are frequently used by the Board to identify the targets of stings, because these ads are usually placed by unlicensed individuals requesting or looking for the kind of work that requires a contractor's license. The CSLB and other enforcement agencies use two sections of the law - B&P sections 7027.1 and 7099.10 ' to take legal action against unlicensed contactors and, on occasion, against licensed contractors advertising illegally. If an unlicensed operator advertises as a contractor in a directory such as the Yellow Pages, and if an investigation determines the entity doing the advertising is unlicensed, under B&P section 7099.10 (a) the Registrar can issue a citation providing for a fine or other civil penalty assessment. The citation will also include an order of correction requiring the violator to: ' Cease the unlawful advertising; and ' Tell the telephone company to disconnect service to any phone number in the unlawful ad and not to refer any subsequent calls to that number to any new number obtained by that person. If the order of correction isn't complied with, the Registrar can have the Public Utilities Commission disconnect the phone service. The CSLB encourages anyone to contact us if they think an unlicensed contractor is actively working on a construction project. A 'Hot Lead Referral Form' is available from our Web site, www.cslb.ca.gov
You already know about advertising in newspapers and on radio and television, but for licensed contractors advertising is more than that. It's also: ' Your business card; ' Any contract proposal; ' Lettering on your trucks and other vehicles; ' Any sign or billboard identifying you or your company as a contractor; ' Any soliciting brochure, pamphlet or circular you or anyone else posts or distributes; and ' Any directory or listing that states or implies you are a contractor requesting or looking for the kind of work that requires a contractor's license under the Contractors License Law. These specifications are in Rule 861 of the CSLB Rules and
Regulations. They define what Business and Professions (B&P) Code section 7030.5
means when it says that licensed contractors are required to include their
license numbers in '(a) all construction contracts; (b) subcontracts and calls
for bid; and (c) all forms of advertising, as prescribed by the registrar of
contractors.' The fine for not complying with this requirement is between $50
and $100 for a first offense. Plumbing, electrical sign, and well-drilling contractors must display the following information on both sides of every business vehicle in letters at least 1 1/2 inches high (B&P section 7029.5): ' Business name; ' Permanent business address; and ' Contractor's license number. All other licensed contractors must display their business names and contractor's license numbers on every one of their commercially registered vehicles. The name and number must be in a clearly visible location in letters at least 3/4 inch high and wide (B&P section 7029.6). Contractors engaged in interstate contracting can ask the CSLB
Registrar for an exemption from the requirement to put their California
contractor's license number on trucks and vehicles. It is a misdemeanor to use false, misleading or deceptive
advertising to induce clients to enter into home improvement or other
improvement contracts (B&P section 7161). It is also illegal to include in an ad
for home or other improvements any false or misleading assertions or price
representations you don't intend to accept contracts for. (Ads subject to and in
compliance with Federal Trade Commission rules and regulations shall not be
deemed false, deceptive or misleading.) ADVERTISING FOR WORK YOU'RE NOT LICENSED TO DO Section 7027.1 prohibits licensed contractors from advertising for construction work outside of areas for which they are licensed. For example, a masonry contractor who advertises to do electrical work can be charged with a misdemeanor - unless he or she also has a C-l0 license. (An exception to this provision permits licensed 'A' and 'B' contractors to advertise as general contractors.) The fine for the advertising violations in section 7027.1 is
between $700 and $1,000, plus any other punishment established by the Registrar
or a court. Contractors are forbidden by law (B&P section 7071.13) from
putting in their 'advertising, soliciting or other presentments to the public,'
the fact that they are bonded. Such a statement could lead the public to believe
there is a higher level of protection provided to them by the bonding procedure
than might be the case. This provision is designed to prevent such
misunderstandings. B&P section 7027 also prevents owner-builders and others
exempted from the licensing provisions of the Contractors License Law from
advertising illegally. If they employ any sign, card, classified ad, directory
or other device to specify or imply to the public that they are contractors or
are looking to do 'construction or work of improvement,' such advertising will
make them subject to the same legal provisions as licensed contractors. Ads soliciting to remove asbestos from buildings or structures must include the name the contractor is registered under and two special numbers: 1. The asbestos certification number issued by the Board (B&P section 7058.5); and 2. The registration number required under Labor Code section 6501.5 for anyone doing asbestos work (B&P section 7099.11). Failure to include these numbers will result in a notice to comply with this requirement from the Registrar. Failure to comply with this notice, or advertising to remove asbestos without being properly certified and registered, will result in a citation and potential fine of $50 to $1000. |
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