FTC fires warning shot at law firms that pursued DEI certification
Summary
The Federal Trade Commission, under Chairman Andrew Ferguson, sent warning letters to 42 law firms about potential antitrust issues tied to participation in Diversity Lab’s Mansfield Certification. The FTC flagged “knowledge-sharing calls” and any sharing of competitively sensitive information as possible unlawful coordination that could harm labour competition. Ferguson emphasised the letters are alerts to potential liability rather than findings of illegal conduct. The move sits alongside broader federal scrutiny of corporate DEI programmes from the DOJ and EEOC.
Key Points
- The FTC sent formal warning letters to 42 firms that sought Mansfield Certification from Diversity Lab.
- Regulators are concerned that “knowledge-sharing calls” and shared DEI metrics could amount to unlawful coordination that reduces labour competition.
- Chairman Ferguson framed the letters as alerts to potential legal risk, not accusations of wrongdoing.
- Diversity Lab says Mansfield is an inclusive sourcing process (asks for at least 30% underrepresented talent among those considered) and does not impose quotas or exclude candidates.
- The action aligns with wider Trump administration enforcement targeting DEI efforts, with the DOJ and EEOC signalling separate scrutiny of some DEI practices.
Content summary
The FTC’s letters highlight a potential antitrust risk when law firms share hiring or candidate-selection information as part of DEI certification programmes. Ferguson specifically warned that practices such as agreeing on slates or discussing metrics in ways that affect who gets opportunities could be seen as anticompetitive. Diversity Lab defends Mansfield as an inclusive sourcing process that does not mandate selection based on protected characteristics; a federal judge in 2025 also said Mansfield did not automatically establish illegal quotas in a separate case.
This enforcement posture is part of a broader federal push to challenge certain DEI initiatives. The DOJ has signalled litigation under the False Claims Act for recipients of federal funds alleged to run discriminatory DEI policies, and the EEOC has outlined how some DEI programmes could violate civil rights law. For law firms and in-house HR/legal teams, the letters are a prompt to review how DEI practices are run, what information is shared externally, and whether any coordination could create antitrust exposure.
Context and relevance
Why this matters: regulators are increasingly treating DEI activity not just as a policy choice but as a potential competition and civil-rights issue. Firms that participate in certification programmes or share benchmarking and candidate-slate details should reassess procedures and record-keeping. The FTC’s letter is likely to ripple across legal, recruitment and HR circles: it raises questions about how to pursue diversity objectives while avoiding agreements or information exchanges that might be construed as limiting competition for talent.
Why should I read this?
Short version — if you work in a law firm, HR or handle recruitment compliance, this is a wake-up ping. The FTC isn’t accusing firms yet, but it’s signalling what it will watch next: who you talk to, what DEI metrics you swap, and whether your processes could be read as coordinating hires. Read it so you can tweak practices before you get a letter of your own.