Construction and remodeling: the numbers, the rules, the AI picture.

• State contractor licensing and advertising rules (example: California CSLB)

  California's Contractors State License Board states that licensed contractors must include their license number in all construction contracts, subcontracts, calls for bid and all forms of advertising, with a civil penalty of $100 to $1,000 for a first offense. CSLB defines advertising broadly: business cards, vehicle lettering, brochures, directories and any website or post that solicits business. Contractors must also display name and license number on commercially registered vehicles, in print of at least 72-point type or letters at least three quarters of an inch high.

  What it means: Put your license number in the website footer, on every service and project page template, in ad copy where space allows, on Google Business Profile and social profiles, on estimates and on trucks. If you work in several states, keep a license table per state and check each state board for its own rule. Never run an ad for a trade outside your license classification.

  [7] cslb.ca.gov

• Advertising within your license classification and bonding claims (California CSLB)

  CSLB says you cannot advertise for construction work outside the areas for which you are licensed. Its example is a masonry contractor advertising electrical work. It also says the law prevents licensees from noting in advertising or presentations to the public that they are bonded, because the statement could suggest a higher level of protection than exists. CSLB adds that using false, misleading or deceptive advertising to induce improvement contracts is a misdemeanor.

  What it means: Match every service page and ad to the classifications on your license. Do not write a line like "licensed, bonded and insured" in California. State rules on bonding claims differ, so confirm with your state board before you copy a line from another state or from a competitor. Keep before and after photos, testimonials and claims truthful and documented.

  [7] cslb.ca.gov

• Texas, New York and other places without one statewide general-contractor license

  Licensing is not uniform. The Texas Department of Licensing and Regulation lists regulated industries such as air conditioning and refrigeration contractors and electricians, and its homepage does not list general contractors. In New York City, the Department of Consumer and Worker Protection says anyone doing construction, repair or remodeling on residential property must hold a Home Improvement Contractor license. Many other states license at county or city level.

  What it means: Before you advertise in a new town, check the state board, the county and the city. In Texas, check TDLR for trade licenses such as HVAC and electrical, and the city for any contractor registration and permit rules. In New York City, put the DCWP license number on your materials. If you are unsure whether a job needs a license, ask the board in writing and keep the answer.

  [8] nyc.gov

• FTC Consumer Reviews and Testimonials Rule (US)

  The FTC's rule on fake and deceptive reviews took effect October 21, 2024. It bars writing, buying or selling fake reviews and testimonials, offering incentives conditioned on a particular sentiment, review suppression through intimidation or unfounded legal threats, and misrepresenting a company-controlled site as an independent review source. Courts can impose civil penalties for knowing violations. The rule covers reviews on third-party platforms as well as on your own site.

  What it means: Ask every client for a review, not only the happy ones. Do not say "leave us 5 stars and get a gift card." A thank-you that does not depend on the rating is safer, but ask a lawyer. Do not delete or hide real negative reviews you host on your own site. Do not post testimonials from people who did not hire you. Do not pay an agency for reviews.

  [9] ftc.gov

• FTC Endorsement Guides: material connections and disclosure (US)

  The FTC's guidance says endorsements must reflect the endorser's honest opinion, and that payments, free products, employment and family or friendship ties must be disclosed when viewers would not expect them. It says advertisers are responsible for the endorsements their agencies and networks produce, and that companies should not selectively solicit happy customers or sort reviews to hide negativity.

  What it means: If a supplier, supplier rep or relative posts about your work, disclose the relationship next to the post. If you offer a discount for a yard sign or social post, disclose it. Train staff and agencies on the rules, and do not pick only your five-star clients for a review request.

  [10] ftc.gov

• FTC Cooling-Off Rule for sales at the home (US)

  The FTC's Cooling-Off Rule makes it unfair and deceptive for sellers in door-to-door sales valued at more than $25 not to give buyers notice of their right to cancel within three business days. The FTC's guidance applies this to contracts signed at the buyer's home or away from the seller's permanent place of business. Many states add their own home-improvement contract rules, which can be stricter.

  What it means: If you sign contracts at the homeowner's kitchen table, your contract package needs the written cancellation notice. Do not start work before the cancellation window ends unless you are sure state law allows it. Do not run promotions that pressure a homeowner to sign on the spot.

  [11] ftc.gov

• Google Business Profile guidelines for service-area businesses

  Google says a business with no storefront that travels to customers can have one service-area profile and should hide its address. The address must be precise and real: P.O. boxes, mailboxes at remote locations and virtual offices are not eligible. The business name must match the real-world name, without taglines, keywords or service descriptions. Google says a service area generally should not extend beyond about two hours of driving from the base. It can suspend profiles that break the guidelines.

  What it means: If you work from a home office or a yard, hide the address and set a realistic service area. Do not create profiles for towns where you have no staffed location. Do not stuff the name with keywords like "Best Kitchen Remodeling Denver." A suspended profile can cut off a major lead source overnight.

  [12] support.google.com

• Fake review and drip-pricing rules in the UK and Canada

  In the UK, the Digital Markets, Competition and Consumers Act 2024 and the CMA's guidance ban fake reviews and concealed incentivised reviews. The business guidance says you must not commission third parties to write fake reviews, and that breaches can mean fines of up to 10% of global turnover. In Canada, the Competition Bureau says promoting a price that is unattainable because of fixed mandatory fees is against the law, unless the fee is imposed by government on purchasers.

  What it means: UK contractors should treat reviews as the FTC rule does and also follow trading standards rules for home improvement contracts. Canadian contractors should show a price that includes every mandatory fee, such as a fixed site visit or project management charge. Provincial licensing rules apply on top, so check your province.

  [13] gov.uk

General information, not legal advice. Licensing and advertising rules differ by state, province, county and city and change often. Check your own state contractor board, your local building department and a qualified attorney before you publish.