CSLB Cracks Down on Up-selling

Despite repeated warnings from CSLB, the unscrupulous practice of up-selling consumers on unneeded equipment or contracting services still continues. These predatory practices have been most prevalent in the warm-air heating, ventilating, and air-conditioning (HVAC) trade, but abuses can occur with almost any repair where a consumer only needing a relatively minor fix is talked into a major – and unnecessary – remedy.

CSLB investigative staff have been trained to spot potential cases of up-selling services or products, particularly when high-pressure sales and scare tactics are used. These unethical business practices cheat unsuspecting customers, especially older persons. CSLB also works with local district attorney's offices and organizations such as the Better Business Bureau to identify and prosecute potential up-sell cases.

Here is what investigators are watching for:

• Hard-sell tactics to obtain grossly inflated contracts All too often, what starts out as a simple inspection, tune-up, or modest repair turns into a complete replacement that costs thousands of dollars.
• Work that is represented as critical or safety-related, needing immediate correction In one case, an elderly homeowner reported that a technician performing a free duct inspection claimed to have found a cracked heat exchanger that was leaking carbon monoxide gas. The technician turned off the gas supply, rendering the unit inoperable during a December cold spell, and pressured the woman to replace the entire unit. Her son suspected a scam and called CSLB. An inspection by another HVAC contractor revealed that the unit was in good working condition.
• Failing to provide the three-day right to cancel a home improvement contract Some contractors are convincing consumers to waive this legal right so a job can quickly proceed and be paid for up-front.
• Failing to obtain building permits Although technically not considered a service and repair scam, CSLB is on the lookout for contractors that cut corners by sidestepping the permit and inspection process. It's one of the larger issues of noncompliance that CSLB is addressing.
• Lack of workers' compensation insurance or under-reporting of employees These practices harm workers and cause consumers to face financial risk if an uninsured employee is injured on the job, and create an unbalanced playing field for licensees by forcing them to pay higher rates for WC policies.