Steele v. State

537 P.2d 782, 85 Wash. 2d 585, 1975 Wash. LEXIS 906
Washington Supreme Court·Decided June 26, 1975·No. 43530·Published·Cited by 20 cases

Opinion

Finley, J.

This case involves a challenge to a civil investigative demand served upon respondents’ employment agency by the Attorney General pursuant to RCW 19.86.110(1) — a provision in the Consumer Protection Act. Respondents filed a petition in Spokane County Superior Court pursuant to RCW 19.86.110(7) to set aside the civil investigative demand. The superior court ruled that employment agencies are exempt from the Consumer Protection Act and, accordingly, set aside the civil investigative demand. The Attorney General appeals. We reverse the trial court.

The facts are not in dispute. The Attorney General served the civil investigative demand upon respondents because it believed that the employment agency was committing unfair and deceptive practices in violation of the Consumer Protection Act. No civil lawsuit had been filed by the Attorney General prior to the service of the civil inves *587 tigative demand. The civil investigative demand required production of numerous records for inspection and copying by the Attorney General. The records to be furnished basically related to services rendered to applicants for employment; the manner of payment agreed upon by the applicant and respondent; training materials and manuals supplied by the franchisor to the respondent; applications for employment that had been placed in the inactive file in the past year; refunds to applicants or fee adjustments; certain pleadings filed in courts of record of this state in which respondent was a party; certain contracts between respondent and lending or financial institutions; and certain advertisements for employment placed by the agency in local newspapers.

Respondents’ challenge to the instant civil investigative demand raises essentially two issues for our determination: (1) whether employment agencies are exempt from the provisions of the Consumer Protection Act; (2) whether the civil investigative demand constitutes an unreasonable search and seizure in violation of the Fourth Amendment.

Resolution of the first issue, i.e., whether employment agencies are exempt from the Consumer Protection Act, is solely a matter of statutory construction which turns upon the relationship between the exemption provision in the Consumer Protection Act and a subsequently enacted provision in The Employment Agency Act.

At the time the superior court rendered its decision in this matter, the exemption provision of the Consumer Protection Act provided in part: 1

*588 Nothing in this chapter shall apply to actions or transactions otherwise permitted, prohibited or regulated under laws administered by the insurance commissioner of this state, the Washington public service commission, the federal power commission or any other regulatory body or officer acting under statutory authority of this state or the United States: . . .

(Italics ours.) Laws of 1967, ch. 147, § 1, p. 710.

The Employment Agency Act regulates employment agencies. In addition, in pertinent part regarding the statutory problem in this appeal, it provides:

The director may refer such evidence as may be available to him concerning violations of this chapter or of any rule or regulation adopted hereunder to the attorney general or the prosecuting attorney of the county wherein the alleged violation arose, who may, in their discretion, with or without such a reference, in addition to any other action they might commence, bring an action in the name of the state against any person to restrain and prevent the doing of any act or practice prohibited by this chapter: Provided, That this chapter shall be considered in conjunction with chapters 9.04 and 19.86 RCW, as now or hereafter amended, and the powers and duties of the attorney general and the prosecuting attorney as they may appear in the aforementioned chapters, shall apply against all persons subject to this chapter.

(Italics ours.) RCW 19.31.210.

There is no dispute but that employment agencies are extensively regulated by The Employment Agency Act, i.e., RCW 19.31. Our prior decisions have held that if a business or business activity is regulated by other statutory provisions, then that business or business activity is exempt from the Consumer Protection Act. See, e.g., Williamson v. Grant County Pub. Hosp. Dist., 65 Wn.2d 245, 396 P.2d 879 (1964); Washington Osteopathic Medical Ass’n v. King *589 County Medical Serv. Corp., 78 Wn.2d 577, 478 P.2d 228 (1970); Dick v. Attorney General, 83 Wn.2d 684, 521 P.2d 702 (1974). Superficially, at least, this may seem to indicate that employment agencies are exempt from the Consumer Protection Act. But, the instant case involves a factor not present in any of our prior decisions: the regulatory statute involved herein, i.e., The Employment Agency Act, contains an additional provision referring to the Consumer Protection Act and ostensibly making the Consumer Protection Act applicable to employment agencies. See RCW 19.31.210, supra. Therefore, the precise question for us to determine is whether the legislature intended RCW 19.31.210 to override the exemption provision in RCW 19.86.170 and to thereby place employment agencies within the purview of the Consumer Protection Act notwithstanding the fact that they are extensively regulated.

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Steele v. State, 537 P.2d 782, 85 Wash. 2d 585, 1975 Wash. LEXIS 906 (Wash. 1975).

537 P.2d 782 (Steele v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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