Federal Trade Commission Announces End to 'Disparate Impact' Claims

The Federal Trade Commission (FTC) has issued a policy statement clarifying that it will no longer pursue claims based on disparate-impact or 'unfair discrimination' theories. FTC Chairman Andrew N. Ferguson stated that such claims are inconsistent with the 'colorblind Constitution' and can lead businesses to make race-based decisions to avoid liability. This policy shift aligns with President Donald Trump's executive order on 'Restoring Equality of Opportunity and Meritocracy,' which aimed to eliminate disparate-impact liability where possible.