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Retailers face risks if websites aren’t accessible

e-commerce

A majority (81%) of the top 500 e-commerce retailers have faced lawsuits in the last five years.

This is no surprise as online retailers with inaccessible websites often face costly litigation that harms both their finances and reputation. The case of Maria Mendizabal vs. Nike Inc. provides insights into how website accessibility lawsuits impact retailers.

Maria, a blind New York resident, filed a lawsuit against Nike in 2017. She argued the company’s two websites failed to meet design standards for screen readers to access the content. Missing alternative text (alt text) for images, redundant links, and empty link texts were among the issues raised.

Maria sought a permanent injunction to force Nike to comply with accessibility standards, along with damages, court costs, attorney fees, and interest. 

Accessibility Is Legally Required for Retailers

Under Title III of the Americans with Disabilities Act (ADA), discrimination against individuals with disabilities is prohibited in "places of public accommodation." The law defines these places as private businesses open to the public, such as retail stores. 

Because the ADA was passed in 1990, long before the internet and digital platforms became widespread, the law doesn't specifically address whether digital spaces, such as websites, are covered. However, the U.S. Department of Justice (DOJ) and courts have interpreted websites as virtual extensions of a business’s physical presence.

This is why websites must be accessible to individuals with visual, hearing, motor, and cognitive
disabilities. To comply with the ADA, retailers should follow web accessibility standards like the Web Content Accessibility Guidelines (WCAG), which have been cited in numerous US court rulings.

Legal Risks for Online Retailers

Retailers whose websites are not accessible may face legal action. You might receive a demand letter, which typically urges you to make changes on your website and may include a settlement request to prevent the issue from ending up in court.

If you ignore such requests or refuse to comply with ADA regulations, the letter could be followed by a formal lawsuit.

ADA Demand Letters

An ADA website compliance demand letter is a written complaint alleging your website is inaccessible to people with disabilities, thereby violating Title III of the ADA. These letters serve as a warning that you should fix any accessibility issues on your website.

ADA web compliance demand letters are typically sent by attorneys representing individuals with disabilities or advocacy groups addressing accessibility violations. Additionally, any individual with a disability denied access to a public-facing website can send a demand letter. If unresolved, complaints may be filed with the DOJ for investigation.

The common parts of an ADA demand letter are:

  • Details of the violation: This section outlines the specific ADA violations on your website, including accessibility barriers like incompatible screen reader functions or lack of keyboard navigation.
  • Requested changes: The letter will request to make adjustments to your website, such as improving text-background color contrast.
  • Deadline for compliance: The letter will specify a timeframe, from a few weeks to several months, within which you must address the violations.
  • Potential legal consequences: If the required changes aren’t made within the timeline, you may face legal actions, including penalties and court-ordered modifications. If the issue goes to court, businesses may face settlements in the tens of thousands of dollars and have to cover the plaintiff’s legal fees.

Accessibility Lawsuits

According to UsableNet’s 2024 Year-End ADA Web and App Lawsuit Report, over 4,000 ADA lawsuits concerning digital properties were filed in 2024. Notably, 77% were linked to e-commerce websites which stem from their complexity and frequent updates.

When you're sued for running an inaccessible website, you’ll have to go through the following stages:

  • Notice of lawsuit: You’ll receive details about the compliance violations, damages sought, and deadlines for addressing the claims.
  • Hiring a lawyer: You’ll need an expert in internet accessibility law to build your defense strategy and refute the charges.
  • Trial preparation: With your lawyer’s help, you’ll prepare for trial to ensure you follow best practices and verify the validity of the plaintiff’s claims.
  • Expert witness: If needed, hire a technical expert to testify that your site is accessible and that the lawsuit may be unfounded.
  • Outcome: Many businesses settle to avoid lengthy, costly trials. If proven non-compliant, you may face fines and ongoing legal expenses.

When you're involved in an ADA lawsuit, it can bring a huge financial burden on you. The DOJ can impose civil penalties for ADA violations, with fines exceeding $75,000 for a first violation and penalties over $150,000 for subsequent violations.

Most web accessibility cases end in settlements, as the costs of litigation can quickly surpass the costs of settlement. Settling an ADA lawsuit can cost between $5,000 and $25,000 per case, excluding the costs of fixing accessibility issues and reimbursing the plaintiff’s legal fees.

The Cost of Non-Compliance: Reputation Damage and Customer Loss

Failing to address accessibility can harm your reputation and hurt your bottom line. According to the Centers for Disease Control and Prevention (CDC), around 61 million adults in the U.S. live with a disability, which represents a significant share of potential customers.

This means inaccessible websites, digital platforms, or apps can cause you to lose sales. Moreover, negative reviews can worsen the effects of non-compliance by spreading the message that a business is neglecting the needs of diverse communities.

 

David Gevorkian

David Gevorkian is the founder and CEO of Be Accessible, which he established out of his passion for website accessibility and ADA compliance. He spent much of his career working for financial institutions creating websites and mobile applications.

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