Yes this is inanely stupid to connect chess with racism. I have a Marble chess board (from Italy no less) and the colors are a mauve and tan, I guess I don't like aliens or something? Anyways, this is absurd, much like the other occasional absurdities that surface in our legal systems. For instance, someone brought up slavery reparations, which is in UNBELIEVEABLY easy media topic, for it incites strong emotions as soon as RACISM is mentioned. The obvious DUH to the idea is that in penalizing companies that may or may not have made any money off of slavery, they will end up firing the same African Americans who work for them to begin with. So instead of keeping a decent job with benefits and a strong income, they will get next to nothing paid out (while the lawyers make off with millions) and end up getting fired because the company went bankrupt.
Fortunately, enough Americans realize the stupidity of this and I doubt it will ever happen. As far as taking competition away from those poor young minds goes, why lie to them at such an early age? Does anyone here seriously think that the real world doesn't care about winning? I think that competition is inherently HEALTHY for a young person, and will do a far better job of building self esteem if one is able to fail and then succeed as opposed to neither fail nor succeed.
Chess? Racist? Hello? Don't we have something better to do with our time?