Webp 12ricjbrogev5i0ehkrtizlt4qpn
Andrew N. Ferguson | Commissioner | Federal Trade Commission website

FTC warns 31 adoption intermediaries against deceptive practices

ORGANIZATIONS IN THIS STORY

Federal Trade Commission staff have issued warnings to 31 adoption intermediaries, cautioning them against misleading consumers about placement rates and times, suppressing negative reviews, or engaging in other deceptive practices that could harm prospective adoptive and birth parents.

Adoption intermediaries act as middlemen between prospective adoptive parents and birth parents in private adoptions for a fee, often amounting to tens of thousands of dollars. These entities, sometimes referred to as adoption advertisers, facilitators, consultants, matchmakers, or brokers, are not licensed adoption agencies. The FTC emphasized the importance of these intermediaries being truthful and transparent about their services.

“Trying to adopt a child or place a child for adoption can be one of the most difficult and emotionally stressful experiences a parent can ever go through. It is essential that adoption intermediaries are truthful and not deceptive about the services they provide, how long the process may take, and how often they are able to facilitate a successful adoption,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “In addition, adoption intermediaries should never try to block truthful negative reviews or use contracts with language that would do so.”

The letters detail concerns that some intermediaries may be violating the FTC Act through deceptive advertising practices and the Consumer Review Fairness Act (CRFA), which prohibits companies from preventing consumers from posting honest negative reviews.

Examples cited include an intermediary representing itself as an “adoption agency” in paid Google advertisements, potentially misleading consumers into believing it is a licensed child-placing agency. Additionally, some claims by intermediaries might omit critical information—for instance, advertising “open” adoptions without disclosing that such arrangements may not be legally enforceable depending on state law.

The FTC also noted concerns over marketing high placement rates and short placement times without ensuring such claims are accurate and representative of typical outcomes for prospective adoptive parents.

Some intermediaries were found to potentially prevent consumers from providing honest feedback about their services. Such conduct violates the CRFA and could result in civil penalties exceeding $50,000 per violation.

While the names of the recipients were not disclosed publicly, the FTC urged each intermediary to review its advertising practices for compliance with legal standards under both the FTC Act and CRFA. The letters instruct recipients to cease any potentially unlawful activities immediately.

To inform both businesses and consumers about these obligations under federal laws, the Commission has released additional educational resources.

Naomi Takagi and Joyce Dela Peña in the FTC’s Bureau of Consumer Protection led this initiative.

The Federal Trade Commission aims to promote competition while protecting and educating consumers. More information on consumer topics can be found at consumer.ftc.gov. Fraud reports can be submitted at ReportFraud.ftc.gov. Follow FTC updates on social media or sign up for alerts on their website.

---

ORGANIZATIONS IN THIS STORY