Illinois Prohibits Disparate Impact Discrimination

FTC ends disparate-impact discrimination claims, revises dealer compliance obligations

On the Dash; FTC will no longer pursue disparate-impact claims under its stated Section 5 policy. Certain dealer compliance obligations tied to past disparate-impact analyses are being modified. ECOA disparate-treatment enforcement remains in place. The Federal Trade Commission (FTC) announced on Friday, August 7, 2026, that it will no longer pursue legal claims based on disparate-impact or “unfair discrimination” theories under Section 5 of th…

Illinois Prohibits Disparate Impact Discrimination

Illinois Governor Pritzker signed the new Civil Rights Safeguard Act (Senate Bill 3777) on July 31, 2026 to codify disparate impact as an available theory of discrimination, including in the provision of financial services.The state’s Human Rights Act currently provides that it is a civil rights violation for a financial institution, on the grounds of “unlawful discrimination,” to deny services to a person, or to provide a person with different …