FTC Chairman Issues Warning Letters to Law Firms Over Potential Anticompetitive DEI Practices

USA: FTC Chairman Issues Warning Letters to Law Firms Over Potential Anticompetitive DEI Practices

On January 2026, Federal Trade Commission Chairman Andrew N. Ferguson sent warning letters to 42 law firms, alerting them to possible violations of antitrust law linked to employment practices that rely on race, gender, or other personal characteristics.

Background on Mansfield Certification

The firms cited in the letters participated in the Mansfield Certification program, a scheme developed by Diversity Lab, a for‑profit diversity, equity and inclusion consultancy. Certification requires firms to adopt specific DEI‑based employment standards and to meet regularly with Diversity Lab and peer firms to discuss implementation.

Alleged Anticompetitive Practices

According to the FTC, coordination among firms on hiring criteria, compensation, and promotion decisions that prioritize race, sex, or other protected characteristics rather than merit may constitute collusion that restricts competition for legal talent.

FTC’s Enforcement Stance

“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,” Chairman Ferguson said. “Such agreements can distort competition for labor in legal professions, including along dimensions like hiring decisions, pay, and promotions.”

Scope of the Investigation

The 42 firms collectively employ more than 50,000 attorneys subject to the Mansfield criteria. Public records indicate that hundreds of additional firms, representing tens of thousands of attorneys, have also obtained the certification.

Law Firms Targeted

Letters were dispatched to firms including Alston & Bird, Arnold & Porter, BakerHostetler, Cooley, Covington & Burling, Davis Polk, Debevoise & Plimpton, Dentons, DLA Piper, Faegre Drinker, Fox Rothschild, Gibson Dunn, Goodwin Procter, Gordon Rees, Greenberg Traurig, Hogan Lovells, Holland & Knight, Husch Blackwell, Jackson Lewis, K&L Gates, Latham & Watkins, Lewis Brisbois, Littler, Mayer Brown, McDermott Will & Emery, McGuireWoods, Morgan Lewis, Nelson Mullins, Ogletree Deakins, Paul Weiss, Perkins Coie, Polsinelli, Reed Smith, Sheppard Mullin, Sidley Austin, Skadden, Troutman Pepper, White & Case, WilmerHale, Wilson Elser, Wilson Sonsini, and Winston & Strawn.

FTC’s Ongoing Role

The commission emphasized that collusive behavior in employment markets can undermine competition and that it will continue to monitor and enforce antitrust statutes to protect both workers and consumers.

The FTC’s warning reflects broader scrutiny of DEI initiatives that may intersect with competition law, signaling that firms must ensure compliance with antitrust standards while pursuing diversity goals.

This report is based on information from Federal Trade Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.