Warning homeowners to check out contractors in advance is good, providing a tip line to catch the perpetrators of these crimes is better:
In most US states, people can look up contractor registration and business license status at no cost. That helps consumers to avoid scams involving fake company names or misuse of legitimate ones.
If you need a source to sound fancier it is from Chapter 10 part 2 of Wealth of Nations.
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible, indeed, to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies, much less to render them necessary. "
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