This Act prohibits the advertising and provision of paid conversion therapy intended to change an individual's sexual orientation or gender identity, empowering the FTC and State Attorneys General to enforce these prohibitions.
Ted Lieu
Representative
CA-36
The Therapeutic Fraud Prevention Act of 2025 declares that practices attempting to change an individual's sexual orientation or gender identity for payment constitute an unfair and deceptive business practice. Citing professional consensus on the ineffectiveness and harm of such "conversion therapy," the bill prohibits its provision and advertising. Enforcement authority is granted to the Federal Trade Commission (FTC), and the law allows both the U.S. Attorney General and State Attorneys General to file civil actions against violators.
Federal Bill Targets 'Conversion Therapy' as Fraud, Granting FTC Power to Ban Paid Practice
The newly proposed Therapeutic Fraud Prevention Act of 2025 aims to shut down the paid practice of “conversion therapy” by classifying it as a fraudulent business practice. The bill starts with a clear statement: Congress agrees with medical professionals that being LGBTQ+ is not a disorder and that trying to change a person’s sexual orientation or gender identity is ineffective and harmful, citing risks like depression and suicide (SEC. 2).
The FTC Gets Involved: Treating Therapy Like a Bad Appliance
If you’re busy, here’s the core takeaway: This bill makes it illegal to offer or advertise conversion therapy for money. Why is this a big deal? Because the bill hands enforcement directly to the Federal Trade Commission (FTC). If someone violates this new rule, it’s treated exactly like violating the FTC Act—the same law that stops companies from selling defective products or running deceptive ads (SEC. 4). Think of it this way: claiming you can ‘cure’ someone’s identity is now legally treated the same as selling a faulty car or a supplement that doesn't work.
Defining the Line: What’s Banned and What Isn’t
Crucially, the bill is very specific about what counts as illegal “Conversion Therapy.” It only targets paid practices intended to change sexual orientation or gender identity (SEC. 3). This definition is key because it explicitly carves out several exceptions. For example, helping someone navigate a gender transition—like a therapist supporting a client through medical or social changes—is not conversion therapy under this law. Similarly, general supportive counseling that affirms a person’s identity is also excluded. The goal here is to stop harmful, for-profit attempts at change, not supportive mental healthcare.
Real-World Impact: Who’s Protected and Who Pays the Price
For parents, young adults, and consumers, this bill acts as a consumer protection shield. It means that organizations or practitioners who charge money while claiming they can alter identity or reduce same-sex attraction could face heavy fines and legal action from the FTC. For instance, a small, faith-based counseling center that charges a fee for sessions aimed at changing a client’s orientation would now be engaging in illegal conduct, subject to federal penalties. The bill also empowers State Attorneys General to sue on behalf of their residents, adding another layer of enforcement (SEC. 4).
The Fine Print: Where the Lawyers Will Go to Work
While the intent is clear, the bill has some legal gray areas that will likely be tested. The definition of conversion therapy includes an exception for services protected by the First Amendment, like free speech, even if money changes hands (SEC. 3). This means that while paid services are banned, the line between protected religious expression or speech and unprotected commercial fraud will need to be drawn by the courts. Furthermore, the prohibition on advertising conversion therapy that claims it is harmless or effective could also run into commercial speech challenges. This suggests that while the practice itself is banned, how the law handles the advertising side might spark litigation down the road.