FTC Warns Child Adoption Intermediaries Against Posting Misleading Ads

The Federal Trade Commission (FTC) building in Washington, on Sept. 19, 2006. Paul J. Richards/AFP via Getty Images

The U.S. Federal Trade Commission (FTC) on Sept. 6 warned 31 adoption intermediaries that they may be violating the law by posting misleading ads that suggest they are licensed child adoption agencies.

Adoption intermediaries are unlicensed entities that serve as middlemen between prospective adoptive parents and birth parents in private adoptions, typically for a hefty fee.

The agency sent letters to the adoption intermediaries this week, noting that their ads may have violated the FTC Act—a 1914 federal law that established the FTC and outlawed unfair or dishonest business practices—due to their “deceptive” or “misleading” nature.

The FTC has refused to publicly disclose the names of the adoption intermediaries, stating that its letters were meant to be informational for the recipients.

According to the letter, an unlicensed adoption intermediary promoting itself as an “adoption agency” in paid Google ads may leave consumers with a false impression that it is a licensed, child-placing adoption agency.

“Even if the adoption intermediary disclaims on its website that it is not a licensed adoption agency, disclaimers are not always effective,” the letter stated.

“Accordingly, a disclaimer may not be a defense to liability if the ‘net impression’ provided by the advertisement is still misleading, or in cases where the ‘first contact’ between the company and the consumer ‘occurs through a deceptive practice.’”

The FTC also warned adoption intermediaries against making misleading claims in their ads, such as offering “open” adoption arrangements without disclosing that such options may not be legally enforceable in some states.

In addition, the agency warned intermediaries against misleading consumers about their placement rates and placement times, noting that their marketing must be based on accurate information.

“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,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a press release.

“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 said it identified some adoption intermediaries that may have been preventing consumers from leaving honest reviews about the services they received.

Such conduct is illegal under the Consumer Review Fairness Act and could result in civil penalties of more than $50,000, the letter stated.

The agency ordered the adoption intermediaries to cease any potentially unlawful conduct, adding that it will continue to monitor the market and take follow-up action if necessary.