Arizona Changes Its Laws Regarding Contractor Advertising

Snell & Wilmer

Snell & WilmerAdvertisements for home remodeling services and renovations are everywhere ‒ from billboards to Facebook to Angie’s List. Arizona recently enacted a law that may make it easier for contractors to advertise on television, radio or YouTube.

Under existing Arizona laws and regulations of the Arizona Registrar of Contractors (ROC), licensed contractors must place their license number prominently on all written advertisements (e.g., billboards, car wrap-arounds, mailings), broadcast advertisement (e.g. radio and television ads), letterheads and other documents used to correspond with the licensee's customers or potential customers. See A.R.S. § 32-1124.

In addition to not being allowed to advertise or perform any of the work required to be completed by a licensed contractor, unlicensed entities are required by Arizona law to have the exact phrase “Not a Licensed Contractor” on any and all advertisements.

Starting on August 24, 2021 (the general effective date for all 2021 Arizona laws), licensed contractors may no longer have to include their license numbers on broadcasts, internet or billboard advertising if the ad includes a web address and if the license number is “prominently displayed on the website.” Contractors who wish to save some space on their billboard advertisements or save some time in their TV or radio advertisements by omitting their license numbers may want to consider reviewing their websites to make sure they are updated and prominently feature their ROC license numbers in large, bold type on at least the website’s homepage.

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