The US Federal Trade Commission has agreed to stop enforcing fair-lending and anti-discrimination requirements imposed on two car dealers and a former dealership manager. The move has drawn criticism from an Illinois federal court and Arizona’s attorney general, who says it weakens protections against customers being charged more because of their ethnicity.

The FTC had accused the businesses of charging Black and Latino borrowers higher discretionary interest mark-ups and add-on fees than white customers on average. It said the original cases relied on “disparate impact” analysis, which concerns policies with unequal effects rather than proven intent to discriminate, and that it will no longer pursue such claims; the shift follows a Trump administration order to review past agency actions.