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FTC Abandons "Disparate Impact" As A Basis For Section 5 Claims

Published

12 August 2026

Topic

regulatory

◆ Geography

United States

◆ Source

Read at mondaq.com →

◆ Verified

Fusion42 · 13 August 2026 · Fusion42 review

The Federal Trade Commission (FTC) has officially abandoned the use of disparate impact as a legal basis for Section 5 claims under the FTC Act, marking a shift away from enforcement based on discriminatory outcomes rather than intent. This policy change includes modifying compliance obligations in previously settled cases and signals a significant alteration in the agency's approach to consumer protection and discrimination enforcement.

◆ ◆ The Wire takeaway

US consumer market founders face a narrower enforcement on discrimination without intent. Now is the moment to review your compliance posture and revisit settled cases to manage legacy obligations under the updated FTC policy.

◆ Coverage

3 sources · first reported 7 Aug 2026 · latest 12 Aug 2026

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◆ Topics

ftcdisparate-impactconsumer-protectionregulatory-shiftus-policy