Consumer Protection, Fraud & Lemon Law · Purchases and warranties
Licensed businesses, cancellation rights and complaints
In this guide
- Many California businesses and professionals must be licensed, and licenses can be checked online.
- Home improvement contractors generally can’t take a down payment over $1,000 or 10% of the price, whichever is less.
- Contracts signed at home after a seller’s visit generally can be cancelled within 3 business days, or 5 for people 65 and older.
Checking licenses
The Department of Consumer Affairs oversees many licensed trades and professions. The Contractors State License Board (CSLB) licenses contractors, and work over $1,000 in labor and materials generally requires a licensed contractor. License lookups show status, bonds, and complaints.
Home improvement contracts
- Contracts must be in writing and include specific disclosures.
- The down payment generally cannot exceed $1,000 or 10% of the contract price, whichever is less.
- Payments during the job generally cannot get ahead of the work completed.
Cancellation rights
California gives buyers the right to cancel many home solicitation contracts (signed at home after a seller’s visit) within 3 business days, or 5 business days for buyers 65 and older. Other cancellation rules apply to certain services, such as dating services, health studios and seminars. Since October 1, 2026, people who buy a used vehicle from a dealer generally have a three-day right to cancel the purchase, subject to price and mileage limits and a restocking fee.
Where complaints go
- Licensed professionals and trades: the licensing board, through the DCA
- Contractors: CSLB
- Car dealers: DMV Investigations
- Lenders and debt collectors: DFPI
- Businesses generally: the California Attorney General or local district attorney
- Money disputes: small claims court
Official sources for this guide
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