The Federal Trade Commission became the latest Trump administration agency Friday to swear off pursuing discrimination cases grounded in "disparate impact" on particular groups, arguing that alleging discrimination without specific discriminatory intent exceeds the FTC's authority and effectively requires companies to make decisions based on race. The Federal Trade Commission announced a policy statement clarifying that the Commission will not pursue claims based on disparate-impact or “unfair discrimination” theories. Disparate-impact theory presumes that a difference in outcome among demographic groups must be the result of unlawful discrimination, even if no evidence of discrimination exists. As the policy statement explains, the Commission lacks the statutory authority to consider claims under this novel legal theory. Moreover, disparate-impact analysis under its authorities would require race-based analysis of outcomes, which is pernicious and contrary to fundament...
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