The Federal Trade Commission (FTC) has issued warning letters to 42 prominent law firms, expressing concerns that their participation in the Mansfield Certification program may contravene antitrust laws, specifically the Sherman Act and Section 5 of the FTC Act. The Mansfield Certification, developed by Diversity Lab, aims to enhance diversity within the legal profession by setting specific hiring and promotion benchmarks.
In a statement, FTC Chairman Andrew N. Ferguson highlighted that the program’s requirements could lead to coordinated employment practices among competing firms, potentially distorting competition in the legal labor market. Ferguson noted that such coordination might involve setting quotas for candidate pools based on race, sex, or other personal characteristics, which could influence decisions related to hiring, pay, and promotions. He emphasized that such agreements could distort competition for labor in legal professions, including along dimensions like hiring decisions, pay, and promotions. ([ftc.gov](https://www.ftc.gov/news-events/news/press-releases/2026/01/federal-trade-commission-chairman-andrew-n-ferguson-issues-warning-letters-law-firms-anticompetitive?utm_source=openai))
The Mansfield Certification mandates that participating firms consider at least 30% of candidates from underrepresented groups for leadership roles and promotions. Additionally, the program facilitates regular meetings among firms to discuss the implementation of these diversity criteria. The FTC’s concern is that these practices may lead to collusion among firms, thereby violating antitrust laws. ([freebeacon.com](https://freebeacon.com/trump-administration/ftc-warns-big-law-over-dei-program-that-sets-unwritten-rules-for-diversity-hiring/?utm_source=openai))
The law firms that received the FTC’s warning include 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.gov](https://www.ftc.gov/news-events/news/press-releases/2026/01/federal-trade-commission-chairman-andrew-n-ferguson-issues-warning-letters-law-firms-anticompetitive?utm_source=openai))
This development underscores the FTC’s ongoing scrutiny of employment practices that may impede competition. The Commission has previously taken action against non-compete agreements and other restrictive covenants that limit workers’ mobility and suppress wages. ([arnoldporter.com](https://www.arnoldporter.com/en/perspectives/publications/2025/10/antitrust-agency-insights-third-quarter-2025?utm_source=openai))
Law firms are now faced with the challenge of balancing their diversity and inclusion initiatives with compliance to antitrust regulations. The FTC’s warning serves as a reminder that while promoting diversity is essential, it must be pursued in a manner that does not violate competition laws.