The Federal Trade Commission (FTC) staff has expressed support for a proposed amendment by the Texas Supreme Court that would remove the American Bar Association’s (ABA) exclusive authority over educational requirements for bar admission in Texas. Under current rules, applicants must graduate from an “approved law school,” which is defined as one accredited by the ABA.
In a letter to the Texas Supreme Court, directors from the FTC’s Office of Policy Planning and Bureau of Competition outlined concerns about competition within the legal profession. They stated, “the current rule raises serious competitive risks by giving the ABA, an association of practicing lawyers, the ability to restrict entry into their profession.”
The letter argues that practicing attorneys dominate the ABA and have an interest in limiting competition for legal services. According to FTC staff, this control allows the ABA to exclude potential competitors. The letter also notes that those who oversee law school accreditation within the ABA are influenced by higher education interests, potentially maintaining high costs for legal education and restricting more affordable alternatives.
“The current rule likely prevents many potentially qualified lawyers from providing needed legal services to the Texas public,” states the FTC staff letter. It further adds that “the proposed amendment will instead benefit prospective law students and consumers of legal services.”
The letter describes this change as a significant move toward reducing what it calls “the ABA’s enduring monopoly and resulting power to impose costly, overly burdensome law school accreditation requirements.” The FTC encouraged other states to consider similar reforms.
The Commission authorized issuing this staff letter with a unanimous 2-0 vote.
The FTC promotes competition while protecting and educating consumers. The agency advises that it will never request money or make threats related to scams or prizes. More information on consumer protection topics and reporting fraud can be found at ReportFraud.ftc.gov.
