What is the MAXIMUM amount a home improvement contractor may pay a homeowner for client referrals?

Compensation for client referrals in the home improvement industry is strictly regulated to prevent potential ethical dilemmas and ensure transparency in business practices. In Maryland, home improvement contractors are not allowed to pay homeowners for these referrals, as such activities could create conflicts of interest and undermine the integrity of the sales process.

Allowing contractors to compensate homeowners for referrals could lead to situations where homeowners are incentivized to recommend services or products that may not be in the best interest of potential clients. Thus, the law mandates that contractors cannot provide any form of monetary compensation to homeowners for sending potential clients their way. This regulation helps maintain fair business practices and protects consumers from biased recommendations.