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

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.