House Energy and Commerce RFI on FTC Overhaul Signals Potential Restructuring of Enforcement Powers; FTC Abandons Disparate Impact for Section 5; Congressional Investigations Ahead of 2026 Midterms

The House Energy and Commerce Committee issued an RFI seeking input on restructuring the FTC's enforcement powers. This could reshape how privacy violations are pursued, potentially reducing federal enforcement and shifting focus to state AGs and private litigation. Additionally, the FTC has abandoned disparate impact as a basis for Section 5 claims, a major policy shift that limits the agency's ability to pursue discrimination cases against ad tech firms for algorithmic targeting or pricing. New: Congressional investigations ahead of the 2026 midterms are likely to target data privacy, AI, and surveillance pricing regardless of party control—ad tech firms should prepare coordinated legal/communications strategies. Ad tech compliance teams should monitor both developments.