The FTC just pulled a major U-turn, ditching court-enforced rules meant to stop racial discrimination in auto lending — a move that’s sparking outrage from state officials and raising alarms about a rollback of civil rights protections. Once accused of charging people of color more for cars and fees, dealerships now get a free pass under the FTC’s new stance: they’ll only pursue cases of intentional discrimination, not policies with “disparate impact.” Arizona’s AG called it “outrageous,” while critics worry this aligns with Trump-era moves to gut disparate impact laws — all without even asking the courts for approval. The FTC is also dropping enforcement on key provisions like anti-discrimination bans and mandatory employee training — and won’t help states monitor compliance either.
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