Advertising can create licensing problems for Texas CPAs when claims about services, fees, credentials, or results cross the line into misleading or unverifiable statements. The Texas State Board of Public Accountancy (TSBPA) regulates how CPAs advertise and can pursue disciplinary action when they violate those rules.
Because an advertising complaint can put a CPA’s license, reputation, and ability to practice at risk, accountants should understand where the Board draws the line before publishing promotional materials, direct mail, website content, or social media posts.
A Texas CPA license defense lawyer from Bertolino LLP can help if you face disciplinary action against your CPA license for advertising or other rule violations. Together, we will strive to protect your license and determine the best strategy for your case.
General Advertising Rules for CPAs
A Texas professional license defense lawyer from Bertolino LLP can help if you face allegations of advertising violations or other rule infractions, working to protect your license and career.
The 22 Tex. Admin. Code § 501.82 outlines the general rules for CPA advertising. Under these regulations, you must follow specific prohibitions and guidelines to ensure compliance.
Prohibited Communications
According to § 501.82(a), an individual shall not use or participate in the use of:
- False, fraudulent, misleading, or deceptive statements or claims regarding professional services.
- Coercive or intimidating communications related to professional services, including coercion, duress, compulsion, intimidation, threats, overreaching, or harassing conduct.
- A misleading name that obscures the true identity of the individual practicing under it.
Definition of False, Fraudulent, Misleading, or Deceptive Statements
A “false, fraudulent, misleading, or deceptive statement or claim” includes, but is not limited to, any statement or communication that:
- Misrepresents facts.
- Fails to fully disclose relevant information, misleading or deceiving clients by omission.
- Creates unjustified or false expectations of favorable results.
- Implicates unearned attainments, such as educational achievements or licensing recognition not supported by fact.
- Misrepresents fees, including advertising fixed fees without disclosing all reasonable variables that affect actual charges.
- Leads to misunderstandings by reasonably prudent individuals based on probable interpretations.
- Suggests improper influence over any court, tribunal, or regulatory body due to presumed special relationships.
- Uses unverifiable self-laudatory statements.
- Makes false comparisons with other accountants or accounting services.
- Includes endorsements or testimonials not supported by verifiable facts.
Advertising Through Direct Mailings
CPAs may use direct mailings to potential clients as a form of advertising so long as they comply with all Texas State Board of Public Accountancy (TSBPA) rules and laws on advertising. Under § 501.82(d), CPAs who send out direct mailings as advertisements must keep a copy of the mailings and the list of persons to whom they sent them for a minimum of 36 months.
The direct mailing rules apply to mail sent via U.S. mail, email, or other electronic means. Furthermore, a recording or copy of any broadcasts, including transmissions via cable, airwaves, the internet, or other electronic means, must also be kept for 36 months, just like any documentary advertisements mailed to prospective clients.
Exceptions
The only exception to this rule is for existing clients, individuals who invited the advertisements (such as by signing up for a mailing list), or individuals who are “seeking to secure the performance of professional services.”
Online Advertising and Use of Social Media Platforms
Like other industries, CPAs may use online advertisements and social media platforms to promote their business. However, CPAs and their accounting firms must not violate any rules of professional conduct or other laws governing their profession.
For instance, CPAs should keep copies of advertising statements posted on their websites and social media pages for at least 36 months, since they can reach the public. They also must avoid prohibited “self-laudatory statements that are not based on verifiable facts” on their websites and social media pages.
Wording Matters
Additionally, the TSBPA does not currently recognize any “specialist” in public accounting. As a result, CPAs should not hold themselves out as “specialists” or use similar terms, as they imply that the TSBPA has endorsed or recognized them as such.
Having clients follow or connect with your business on social media does not, by itself, violate client confidentiality rules. According to the TSBPA, a client’s decision to connect with a firm on social media may waive confidentiality concerning the fact that the person is a client, but it does not eliminate the CPA’s broader duty to protect confidential client information.
However, you must ensure your firm’s online presence does not violate the rules concerning contact with prospective clients. Under § 501.82(c), CPAs may not continue to solicit prospective clients when they have made known their desire, or the CPAs should reasonably be aware of such a desire.
How a Texas Professional License Defense Lawyer Can Help
Facing allegations of advertising violations or other professional conduct issues can jeopardize your CPA license, reputation, and career.
A Texas professional license defense lawyer at Bertolino LLP can help you prepare responses to complaints or investigations initiated by the TSBPA and represent you during informal settlement meetings, formal hearings, or disciplinary actions before the board. If your career is on the line, take the steps needed to reach a resolution.
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Bertolino LLP Can Fight Back Against Disciplinary Proceedings
Don’t allow advertising or other rules violations to keep you from your career. If you face adverse action concerning your CPA license, we can help you take the steps necessary to defend yourself in your disciplinary proceedings.
A Texas CPA license defense attorney from Bertolino LLP can personalize a license defense strategy to protect your career. For a free consultation, speak to our Client Success Liaison.
Call or text (512) 515-9518 or complete a Case Evaluation form