Federal Trade Commission Ends Pursuit of 'Disparate Impact' Claims

The Federal Trade Commission (FTC) announced a new policy statement clarifying that it will no longer pursue claims based on disparate-impact or "unfair discrimination" theories. Chairman Andrew N. Ferguson stated that such claims are "nearly impossible to square with our colorblind Constitution" and impose liability without evidence of intent to discriminate. This policy shift aligns with President Trump's executive order last year on "Restoring Equality of Opportunity and Meritocracy."