FTC Endorses Ohio Supreme Court Proposal to Reduce Reliance on American Bar Association Accreditation

In this blog entry for Sheppard, authors Ann M. O’Brien, Luke Taeschler & Dana L. Kennedy (Sheppard) discuss the growing antitrust scrutiny of professional accreditation bodies, particularly in higher education. They focus on the FTC’s support for the Ohio Supreme Court’s proposal to eliminate the requirement that attorneys graduate from an ABA-accredited law school before qualifying for the state bar, arguing that such accreditation systems may unnecessarily restrict competition.

The authors explain that the FTC believes delegating authority to the ABA creates competitive risks because the organization is largely controlled by practicing lawyers, law school faculty, and administrators who may have incentives to limit new entrants and preserve existing market structures. According to the FTC, the ABA’s accreditation standards increase the cost of legal education, reduce the number of qualified lawyers, and ultimately limit access to affordable legal services.

The blog places Ohio’s proposal within a broader national trend. Florida and Texas have already reduced the ABA’s exclusive role in bar admissions, Tennessee is considering similar reforms, and the U.S. Department of Education has supported expanding the number of recognized accrediting bodies. Similar antitrust concerns have also emerged in healthcare, with challenges to pharmacy residency accreditation and the medical residency matching system.

The authors go on to describe  these developments as a signal of an expanding enforcement focus on accreditation, licensing, and eligibility requirements that may create barriers to entry or suppress competition in labor markets. Businesses and organizations operating in regulated professions should monitor these evolving legal and policy changes…

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