This law which amends California B & P Code 10177 became effective January 1, 2007.

This new law strengthens prohibitions against real estate agents from falsely claiming membership in trade organizations or falsely claiming to have special designations or certifications. Generally, this law prohibits knowingly authorizing, directing, conniving at or aiding in the publication, advertisement or distribution of any material false statement or representation concerning a designation or a certification, including trade organization membership. The R.E. Commissioner is authorized to suspend or revoke a real estate license for this violation.

Currently, the law provides that willful misuse of trade names, including "realtor", are subject to discipline by the R.E. Commish by revoking, suspending or denying a license.