Running the Business · Part 2
Advertising law for a licensed contractor: the number on every ad and the van, the word you can never use, and what a misleading ad costs
CSLB regulates what a contractor says in public more tightly than most new licensees expect, and it enforces the rules with citations and, in one case, suspension. The license number must appear on every form of advertising, and the regulation defines advertising to include business cards, the van, the website, a directory listing, and a text message with a bid in it. A C-36 has its own vehicle rule with a letter-height requirement. Advertising the bond is grounds for suspension. A misleading ad, or an advertised price you do not honor, is a misdemeanor. This lesson lists every rule with its section and shows what a compliant van, card, and ad look like.
What the full lesson covers
- B&P 7030.5 plus 16 CCR 861: the license number goes on every card, proposal, sign, vehicle, brochure, directory listing, website, profile, email signature, and electronic transmission that offers contracting work. Format it as the board prescribes: the number, identified as a license number.
- B&P 7029.5: a C-36 must display the business name, permanent business address, and license number on every motor vehicle used in the business, in letters and numerals at least one and one-half inches high. Name and number alone, in 72-point type, is the rule for other trades (7029.6), not for plumbers.
- B&P 7071.13: any reference in advertising to the bond required by license law is a ground for suspension. "Licensed and insured" only. Never "bonded."
- B&P 7161: false, misleading, or deceptive advertising, or advertising a price you do not intend to honor, is a misdemeanor and cause for discipline. Every "free" and "guaranteed" is a claim you must be able to keep.
- The business name in the ad must match the license (7059.1), the classifications claimed must be the ones held, and a customer can never be penalized for a review (Civil Code 1670.8).
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