WASHINGTON, D.C. — The Federal Trade Commission (FTC) recently issued a stern warning to 31 adoption intermediaries, urging them to desist from engaging in misleading practices that could harm prospective adoptive parents and birth parents. These intermediaries, who serve as middlemen in private adoptions, were cautioned in letters from the FTC for potentially violating the FTC Act and the Consumer Review Fairness Act (CRFA).
Adoption intermediaries often present themselves as facilitators, matchmakers, or brokers, charging substantial fees for their services. However, they are not licensed adoption agencies, which mandates a high level of transparency and honesty regarding their services. The FTC’s correspondence highlighted the necessity for these intermediaries to be truthful about their identity and capabilities.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, underscored the emotional complexities of adoption, stating, “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.”
The FTC raised concerns that some intermediaries might be misrepresenting themselves as licensed agencies in advertisements, thus misleading consumers. The letters also pointed out the questionable practice of promoting “open” adoptions without clarifying the legal enforceability, which varies by state law. Furthermore, the FTC emphasized that claims about high placement rates or short waiting times must be accurate and reflective of typical outcomes.
Moreover, the FTC cautioned against the suppression of honest consumer reviews. The CRFA prohibits companies from including contract terms that prevent consumers from posting truthful reviews. Violations of this act could result in civil penalties exceeding $50,000 per infringement.
Although the names of the intermediaries are not publicly disclosed, the FTC’s message is clear: review and amend any misleading advertising practices and ensure compliance with federal laws. The agency has stated that it remains vigilant and will continue to monitor the sector, ready to take further action if necessary. This initiative highlights the FTC’s efforts to safeguard the integrity of adoption processes and protect the rights of all parties involved.
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