FTC Issues Policy Statement Abandoning Disparate-Impact and 'Unfair Discrimination' Theories

The FTC voted 2-0 to approve a policy statement declaring the Commission will no longer pursue claims based on disparate-impact or 'unfair discrimination' theories, which the agency said presume unlawful discrimination from statistical outcome differences without evidence of discriminatory intent. Following a 2025 executive order limiting disparate-impact liability across federal agencies, the FTC also modified existing compliance obligations for three automotive dealer businesses previously subject to statistical disparate-impact requirements, while noting the policy does not preempt other federal, state, or local discrimination laws.

• FTC will no longer bring or pursue disparate-impact or 'unfair discrimination' claims absent evidence of intentional discrimination
• Policy statement approved by 2-0 Commission vote following a 2025 executive order on disparate-impact liability
• Compliance obligations modified for three automotive dealer businesses previously bound by statistical disparate-impact requirements
• Statement clarifies it does not preempt other federal, state, or local anti-discrimination laws