FTC issues antitrust warning to law firms over diversity certification program
Federal Trade Commission Chairman Andrew Ferguson announced Friday that the FTC has sent warning letters to 42 law firms over their participation in Diversity Lab’s Mansfield Certification program. (Photo by Allison Robbert/Bloomberg)
Federal Trade Commission Chairman Andrew Ferguson announced Friday that the FTC has sent warning letters to 42 law firms over their participation in Diversity Lab's Mansfield Certification program.
In the letter, Ferguson expressed “serious concerns” over participation in the Mansfield Certification program, describing Diversity Lab as a “for-profit DEI-consultancy business” and warning firms that “collusion” in hiring practices can violate antitrust laws.
“I remind you that the FTC remains focused on protecting American workers from unfair and anticompetitive employer labor practices,” Ferguson wrote. “Potentially anticompetitive collusion between law firms on DEI metrics can include quotas by which they agree to compose panels of job candidates based on race, sex or other personal characteristics other than the candidate’s merit or by which law firms agree to make final decisions about hiring and promotions based on those personal characteristics.”
Ferguson warned that the effects of “DEI coordination can infect all aspects of law firm hiring.” The Trump administration has previously indicated that it is focused on diversity programs at firms.
Covington & Burling; Latham & Watkins; Reed Smith; Sheppard, Mullin, Richter & Hampton; McDermott Will & Schulte; Paul, Weiss, Rifkind, Wharton & Garrison; and Sidley Austin are among the firms sent warning letters, according to the FTC.
The Mansfield Certification program is described on Diversity Lab’s website as a “structured certification process designed to ensure all talent at participating law firms and legal departments has a fair and equal opportunity to advance into leadership.”
Representatives from Diversity Lab didn’t immediately respond to requests for comment.
Law.com had coverage.
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