FTC Warns Adoption Intermediaries Against Misleading Parents

Federal Trade Commission staff sent letters to 31 adoption intermediaries warning them against misleading consumers with respect to placement rates and placement times, suppressing negative reviews, or engaging in other unfair or deceptive practices that can harm prospective adoptive parents and birth parents.

Adoption intermediaries are individuals or entities that act as middlemen between prospective adoptive parents and birth parents in private adoptions in exchange for a fee, often in the tens of thousands of dollars. These entities, sometimes called adoption advertisers, facilitators, consultants, matchmakers, or brokers are not licensed adoption agencies. As such, it is essential that they are truthful and not deceptive about who they are and what they can do for prospective clients, staff noted in the letters.

“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 announced today detail the staff’s concerns that adoption intermediaries may be violating the FTC Act, through deceptive or misleading advertising, and the Consumer Review Fairness Act (CRFA), which prohibits companies from preventing consumers from providing honest negative reviews of products and services.

The letters provide specific examples of conduct that could be considered deceptive or misleading, including an adoption intermediary representing in paid Google advertisements that it is an “adoption agency,” which may leave consumers with the false impression that it is a licensed, child-placing adoption agency.

FTC staff also warned that adoption intermediaries may be making claims that omit important information to consumers—for example, advertising that an “open” adoption arrangement is an option without disclosing that they may not be legally enforceable depending on state law. Staff also expressed concerns about intermediaries’ marketing of high placement rates and short placement times, reminding them that all claims must be accurate and representative of what prospective adoptive parents typically achieve.

Finally, the letters state that Commission staff has identified some adoptions intermediaries that may be preventing consumers from giving honest reviews about the services they received. Such conduct is illegal under the CRFA, which prohibits companies from including standardized contract provisions that threaten or penalize people for posting honest reviews. Adoption intermediaries found to have violated the CRFA may face civil penalties of more than $50,000 per violation.

The letters are informational and the FTC is not publicly releasing the names of the recipients. The FTC urges each adoption intermediary to review its advertising practices to ensure that it is not engaging in deceptive or misleading conduct, in violation of the FTC Act. Staff also recommends that adoption intermediaries review their contracts and agreements to ensure they are not violating the CRFA. The letters instruct recipients to cease any potentially unlawful conduct, adding that the agency will continue to monitor the market and take follow-up action as warranted.

As part of the FTC’s effort to fully inform the public about the obligations of adoption intermediaries, and to put businesses on notice of their compliance requirements under the FTC Act and the CRFA, the Commission has issued supporting consumer and business education information.

The lead staff attorneys on this matter are Naomi Takagi and Joyce Dela Peña in the FTC’s Bureau of Consumer Protection.