Tough Penalties for Failure to Show Arizona License Number
An Arizona contractor licensing statute applies to
all printed materials and, as of October 2009, to all broadcast, internet, billboard and other forms of advertising
Effective August 9, 2001,
§ 32-1124(B) required all
licensed contractors to print their license number, preceded by the acronym
“ROC,” on any advertising or printed materials used in their business. For
example, if your license number is 1234567, your printed materials have to show
that your license number is “ROC1234567."
This article originally appeared in
the April 2002 issue of "The Construction Advisor"
published by Lang & Klain, P.C. It was revised in January 2010.
Free Subscription to the Construction Advisor
Construction Advisor index
Further, an October 2009
amendment to that statute broadens the license number display requirement to
include "broadcast, published, internet or billboard advertising, letterheads
and other documents used by the licensee to correspond with the licensee's
customers or potential customers."
cards, proposals, invoices, written advertisements or any other printed
materials you use must properly display your ROC license number in this manner
to avoid penalties.
In addition, unlicensed
contractors who are exempt from licensing under
A.R.S. § 32-1121(A)(14)(c) must include the phrase “not a licensed
contractor” in all advertisements and printed materials.
Violation of the
requirements can result in civil penalties up to $500 for each violation. The
Registrar can also revoke the license of a contractor who fails to pay the
penalty and issue a cease and desist order and an additional penalty of $2,500.
Unlicensed contractors who violate the requirements lose their exempt status and
can face prosecution.
Registrar believes a contractor has intentionally failed to include the required
language or license number, it can petition the Superior Court for a civil
penalty of up to $10,000 under the Arizona Consumer Fraud Act. The Act subjects
businesses to severe fines for any misrepresentation in connection with the sale
or advertisement of merchandise, real estate or services.