New Legislation Eases Advertising Requirements for Licensed Contractors
For years, Arizona law required licensed contractors to display their Arizona Registrar of Contractors (ROC) license number on “all broadcast, published, internet or billboard advertising, letterheads and other documents used by the licensee to correspond with the licensee’s customers or potential customers.”
While including the license number in printed media was not a burden, working it into other forms of advertising – particularly broadcasting – posed some significant challenges.
No longer. In March 2021, Governor Ducey signed into law H.B. 2545, which provides an exception to the long-standing advertising requirement.
Specifically, licensed contractors are excused from displaying or mentioning their license number on broadcast, internet, or billboard advertising (including vehicle signage) if the ad includes a web address that "prominently displays the licensee's name and license number." (See the revised A.R.S. § 32-1124.)
For these purposes, effective September 29, 2022, the R.O.C. has explained that a licensee's name and R.O.C. license number are "prominently displayed" if they:
· appear directly on the home page of the website (other than in the footer);
· are clearly visible without obstruction from photos or other graphics; and
· appear in an appropriate font size.
Please note that the new exception applies only to internet, broadcast, and outdoor advertising. Contractors are still required to display their R.O.C. license numbers on all written bids, estimates, print advertising, letterhead, and any other documents used to communicate with customers or potential customers.
Jason Clark is an attorney with Lang & Klain, an award-winning Scottsdale legal firm specializing in construction law.
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This article originally appeared in the bimonthly Arizona Contractor & Community magazine, Jan/Feb 2022 issue, Vol. 11, No. 1.