FTC seeks info from 20 universities about agents, federal law

WASHINGTON — The Federal Trade Commission is asking 20 universities with Division I sports programs whether agents working with their athletes are following a federal law tied to sports-agent conduct.

The FTC’s inquiry, announced Monday, began with sending letters to schools seeking responses by March 23 tied to compliance with the Sports Agent Responsibility and Trust Act that was enacted in 2004. The FTC didn’t reveal which schools had been contacted.

Christopher Mufarrige, the director of the FTC’s Bureau of Consumer Protection, said in a statement that the inquiry “is aimed at better understanding whether sports agents are complying with the law and the degree to which student athletes are being protected.”

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The letters seek information dating back to July 1, 2021, coinciding with athletes being allowed to profit from their fame through name, image and likeness rules. Requested information includes when athletes entered into a contract, when the school was notified by the agent of that deal, whether there had been any complaints about an agent and copies of agency contracts with athletes’ personal information redacted.

The sports agent act is a federal law that prohibits agents from recruiting an athlete by providing false or misleading information or providing anything of value to the athlete before entering a contract. There is also the state-level Uniform Athlete Agent Act that offers similar requirements in at least 40 states and other jurisdictions.

The structure and penalties can vary by state. Cases are difficult to prosecute and aren’t frequently pursued. Notably, officials in North Carolina spent years pursuing cases under the state-level act against a former NFL agent and five others tied to providing improper benefits to Tar Heels football players dating to 2010.

Charges were first filed in 2013. Most cases were resolved either through dismissals or deals with prosecutors. One reached trial in 2020, ending in a mistrial.