FTC Investigates Sports Agent Compliance Amid NIL Era
The Federal Trade Commission is scrutinizing the conduct of sports agents representing Division I athletes, launching an inquiry into potential violations of federal and state laws governing agent behavior as the landscape of name, image, and likeness (NIL) rights continues to evolve.
The FTC’s investigation, announced on Monday, January 14, 2026, involves requests for information from 20 universities. The agency has asked the schools to respond by March 23, 2026, detailing their compliance with the Sports Agent Responsibility and Trust Act of 2004.
Increased Scrutiny Following NIL Rule Changes
The inquiry comes as college athletes have gained the ability to profit from their personal brands since July 1, 2021. This shift has created new opportunities but also raised concerns about potential exploitation and improper influence. “This inquiry is aimed at better understanding whether sports agents are complying with the law and the degree to which student athletes are being protected,” stated a senior official with the FTC’s Bureau of Consumer Protection.
The FTC is seeking detailed records from the universities, including:
- Dates athletes entered into contracts with agents.
- Timelines for when schools were officially notified of these agreements.
- Documentation of any complaints filed against agents.
- Redacted copies of agency contracts, ensuring athlete personal information remains confidential.
Existing Regulations and Enforcement Challenges
The 2004 Sports Agent Responsibility and Trust Act makes it illegal for agents to recruit athletes using false or misleading information or to provide any form of inducement before a formal contract is signed. However, enforcement of these regulations has proven difficult.
Adding another layer of complexity, at least 40 states and other jurisdictions have adopted the Uniform Athlete Agent Act, which mirrors the federal law but features varying structures and penalties. A senior legal analyst noted that prosecution of these cases is infrequent due to the challenges of gathering evidence and securing convictions.
A History of Complex Cases
The difficulties in prosecuting violations were highlighted by a lengthy case in North Carolina. From 2010 onward, officials pursued allegations against a former NFL agent and five associates for providing improper benefits to University of North Carolina football players. Charges were initially filed in 2013, but the legal proceedings were protracted. Most cases were ultimately resolved through dismissals or plea agreements. One case did proceed to trial in 2020, but concluded in a mistrial.
The FTC’s current investigation signals a renewed focus on protecting student athletes in the evolving world of college sports and NIL deals. The agency’s findings could lead to increased enforcement actions and potentially, revisions to existing regulations.
