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Republicans challenge FTC's authority in civil rights enforcement

Summary

Republicans are challenging the authority of the Federal Trade Commission (FTC) to enforce civil rights protections, particularly in a recent lawsuit against Coulter Motor Company, which allegedly discriminated against Latino customers. GOP lawmakers argue that the FTC is overstepping its mandate by pursuing civil rights claims under the Federal Trade Commission Act, which they contend does not authorize such actions.

The controversy has intensified as House Judiciary Committee Chairman Jim Jordan and House Committee on Energy and Commerce Chairwoman Cathy McMorris Rodgers sent a letter to FTC Chair Lina Khan, asserting that the agency’s actions represent a misuse of taxpayer resources. They argue that while the FTC has the authority to enforce the Equal Credit Opportunity Act, it should not extend its reach to challenge conduct as “unfair discrimination” under the FTC Act. This pushback comes in the context of broader concerns from some business leaders about Khan’s aggressive regulatory stance, which they fear could stifle innovation in sectors like artificial intelligence. Meanwhile, progressive figures like Rep. Alexandria Ocasio-Cortez have rallied to defend Khan, warning against any attempts to remove her from her position, emphasizing her role in fighting corporate misconduct and advocating for consumer protection.

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