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Collection Center, Inc. v. State ex rel. Collection Agency Board
Citations: 809 P.2d 278; 1991 Wyo. LEXIS 57; 1991 WL 57191Docket: No. 90-186
Court: Wyoming Supreme Court; April 18, 1991; Wyoming; State Supreme Court
Collection Center, Inc. appeals a cease and desist order from the Wyoming Collection Agency Board, which mandates that it stop advertising its legal services. Following a hearing, the Board determined that Collection Center's advertising materials, which claimed the agency had in-house attorneys and would cover court costs without raising fees for litigation, violated Wyoming Statute 33-11-114. This statute prohibits collection agencies from advertising the provision of legal services, allowing them only to solicit claims for collection. An opposing collection agency prompted the Board's review of Collection Center's advertising. After the Board's ruling, Collection Center sought a district court review, which was certified for appeal to this court with state agreement. Collection Center raises two constitutional issues regarding W.S. 33-11-114: whether it violates the First Amendment by prohibiting truthful commercial speech, and whether it contravenes the Wyoming Constitution. The Board consolidated these into one inquiry about the statute's constitutionality concerning advertising legal services. The Board ruled that Collection Center's advertising violated the statute but did not address its constitutionality, leaving that for judicial determination. Collection Center contends the prohibition against advertising legal services in W.S. 33-11-114 is unconstitutional. The court affirms the Board's decision. Collection agencies are prohibited by law from providing legal services, as established by W.S. 33-11-114. Consequently, any arguments for First Amendment protection of Collection Center’s advertisement as commercial speech are irrelevant, since the advertisement pertains to illegal activity. The court notes that statutes are presumed constitutional unless proven otherwise, and Collection Center does not contest the constitutionality of the statute barring collection agencies from offering legal services. Thus, the main issue is whether advertising illegal services can receive constitutional protection. The court concludes that there is no constitutional right to advertise illegal activities, affirming that the government can ban such commercial speech. Collection Center may advertise its ability to take assignments of debts, which is lawful under W.S. 33-11-114, provided that the advertisement is not misleading. However, the brochure in question misleadingly suggests that Collection Center offers legal services, contradicting the law. It includes references to a legal department and staff attorneys, implying a capacity to provide legal services rather than merely taking assignments of debts. Given this misleading nature, the Board's order to halt distribution of the brochure is upheld. The court affirms that Collection Center has no right to advertise legal services, and if the brochure was intended to inform about lawful services, it still misled potential clients. The decision is affirmed, reinforcing the prohibition against advertising illegal services.