FTC to Adoption Intermediaries: Don’t Kid Around with Misleading Practices

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  • The FTC sent warning letters to 31 companies offering adoption intermediary services, warning them that misleading, unfair, or deceptive practices that harm prospective adoptive or birth parents may violate the FTC Act and the Consumer Review Fairness Act (CRFA).
  • The letters warn the adoption intermediaries—which serve as middlemen between adoptive and birth parents in private adoptions for a fee, but are not licensed adoption agencies—that disclaimers may not shield them from liability if their advertisements give consumers the “net impression” that they are licensed, child-placing adoption agencies.
  • The FTC also raised concerns about potentially misleading advertisements, such as those promoting “open” adoptions without clarifying that they may not be legally enforceable in certain states, or making misleading statements about placement success rates, timelines, and benefits for birth parents. The letters further remind companies that under the CRFA, it is illegal to include contractual provisions that threaten or penalize individuals for posting honest reviews, with civil penalties exceeding $50,000 per violation.
  • The FTC states that it will continue monitoring the market and take action as needed, urging adoption intermediaries to review their advertising and contractual practices to ensure compliance with the law and cease any potentially unlawful activities.
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