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January 31.2026

2 Minutes Read

FTC Warns Law Firms: Anticompetitive Practices in DEI Hiring Tackled

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Federal Trade Commission banner addressing anticompetitive DEI hiring practices.

The FTC's Warning: A Shift in Legal Hiring Practices

In a significant move, Federal Trade Commission (FTC) Chairman Andrew Ferguson has sent warning letters to 42 major law firms, raising red flags about potential anticompetitive practices stemming from their participation in Diversity Lab’s Mansfield Certification program. This action underscores a growing concern that diversity, equity, and inclusion (DEI) hiring initiatives could inadvertently lead to collusion, violating antitrust laws.

Understanding Mansfield Certification and Its Implications

The Mansfield Certification program, designed by Diversity Lab, aims to ensure law firms commit to broader DEI hiring practices by establishing clear guidelines around the recruitment and advancement of underrepresented groups. To earn the certification, firms must collaborate with their competitors and adhere to specific DEI metrics. However, this collaborative nature raises concerns about violations of the Sherman Act and Section 5 of the FTC Act, as firms may engage in collusive behavior relating to hiring practices.

What This Means for the Future of DEI Hiring

As the legal landscape evolves, the balance between promoting diversity and adhering to competition laws becomes increasingly complex. The FTC warns that agreements between law firms on how to approach DEI metrics—such as hiring quotas or decisions based on personal characteristics rather than merit—could distort competition in legal hiring practices. This potential pitfall calls for firms to reevaluate how they implement DEI strategies while remaining compliant with antitrust laws.

Broader Implications for Business Brokers and Legal Firms

For business brokers and legal firms, the FTC's actions highlight the importance of transparency and compliance in hiring practices. Law firms involved must tread cautiously, ensuring that their participation in DEI initiatives does not cross into anticompetitive territory. This situation urges all industry professionals to understand the legal ramifications of collaborative efforts in diversity initiatives and to consider how they communicate and implement these practices internally and externally.

A Call for Responsible DEI Practices

As legal firms navigate these challenging waters, a profound shift in how diversity initiatives are structured and communicated may be necessary. This scenario presents an opportunity for firms to lead with resilience, integrating DEI in ways that not only promote justice and equality but also align with competitive integrity. Understanding and executing responsible DEI practices could serve as a competitive advantage in attracting top talent and enhancing firms' reputations.

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FTC Warns Law Firms: Anticompetitive Practices in DEI Hiring Tackled

The FTC's Warning: A Shift in Legal Hiring Practices

Understanding Mansfield Certification and Its Implications

What This Means for the Future of DEI Hiring

Broader Implications for Business Brokers and Legal Firms

A Call for Responsible DEI Practices

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