Contractor Ads

Q: A reader called to complain about a contractor ad that appeared in our paper and on our website. The ad did not contain a contractor registration number, and the reader was unhappy with the work performed. Does my news organization have liability for ads that do not contain a contractor registration number, and what should we do when we receive complaints like this?

A: The Home Improvement Consumer Protection Act does not require news organizations to determine if a contractor is registered under the law, and news organizations are not liable for ads that do not contain a contractor registration number. With that being said, some news

organizations have adopted a policy that requires home improvement contractor ads to include a registration number as a reader protection policy.

HICPA, 53 P.S. § 517.1, et seq., applies to contractors who perform at least $5,000 worth of home improvement work in a year. The law requires contractors to register with the Pennsylvania Office of Attorney General to obtain a HICPA number. The HICPA number must appear in all advertisements circulated within the commonwealth. The law defines advertisements as “any statement promoting home improvement services in a newspaper, periodical, pamphlet, circular, billboard, sign, letterhead, business card or other printed materials” as well as announcements on radio, TV and online. The law allows consumers to verify a contractor’s registration by visiting the AG website or by calling the toll-free contractor hotline, 1-888-520-6680. The AG’s office advises consumers to avoid home improvement contractors who do not have a HICPA number.

The law does not require news organizations to investigate advertisers’ compliance with the law or impose liability for ads that are not compliant. HICPA places the duty to comply with the contractors themselves; any potential liability for noncompliance falls to the contractors, not publishers. News organizations can accept ads without a HICPA number but, considering the consumer protection aspect of the law, many news organizations require HICPA numbers as a means of reader protection.

News organizations cannot give legal advice to advertisers, readers or others. If your news organization receives questions or complaints about a contractor, you should refer the complainant to the AG’s office, Bureau of Consumer Protection, and note the issue for future reference in case the advertiser seeks to publish more ads.

As always, this is not intended to be, nor should it be construed as, legal advice. Please call your news organization’s attorney or the PNA Legal Hotline with questions at (717) 703-3080.

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