FTC Claims the ABA Is a Monopoly

The Federal Trade Commission accused the American Bar Association of having a “monopoly on the accreditation of American law schools” in a letter to the Texas Supreme Court at a time when the state is considering minimizing the ABA’s oversight of legal education.

In April, the Texas Supreme Court announced it was looking into eliminating ABA requirements for licensure. Justices wrote in a tentative opinion in the fall that the ABA “should no longer have the final say on whether a law school’s graduates are eligible to sit for the Texas bar exam and become licensed to practice law.” It also invited the public to comment on a proposal to potentially undercut the ABA as an accreditor for Texas law schools.

FTC officials Clarke Edwards and Daniel Guarnera signaled support for potentially moving away from ABA accreditation in a nine-page letter submitted to the Texas Supreme Court on Monday. In addition to claiming the ABA was a monopoly, they argued it had “rigid and costly requirements” and that it mandates “every law school follow an expensive, elitist model of legal education.”

The two FTC officials also accused the ABA of driving up the costs of law school.

“The ABA’s standards for accreditation appear to go far beyond what is reasonably necessary to assure adequate preparation for the practice of law in Texas, increasing the cost of a legal education. The current rule therefore likely causes Texas to forgo admitting many potentially qualified lawyers who could provide needed legal services to the Texas public,” they wrote.

Monday’s letter reflects rhetoric from President Donald Trump and his allies who have taken aim at accreditors in recent years. Trump blasted the ABA in an April executive order, accusing it of discrimination for its diversity, equity and inclusion standards. (The ABA suspended DEI standards for accreditation in February, before the executive order.)

The ABA did not respond to a request for comment from Inside Higher Ed.