Blindsided Legal Action - ADA Compliant Website Lawsuits
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ADA accessibility compliance action can come from the Department of Justice (DOJ) or from a law firm that specializes in ADA lawsuits.
The DOJ is authorized to investigate complaints and apply penalties to non-compliant companies. While the Federal law allows for fines of $55,000 to $75,000 for a first offense, most firms settle for a lower fine. Subsequent fines are progressive.
While higher profile cases such as Rite Aid, H&R Block, Target, , Netflix, Winn-Dixie, Domino's, and Amazon have been well documented, there are several interesting patterns that are emerging.
Law Firms Are Specializing in ADA Actions
Looking back at the data, there have been over 24,000 ADA lawsuits from 2016 to now. The first two years were relatively light. From 2020 to 2023, there have been 12,251 lawsuits.
Interesting enough, five law firms filed 54% of all ADA website lawsuits. And sixteen law firms filed 90% of all lawsuits. In other words, law firms are specializing in ADA website compliance and appear to be making money from it. Over time, they have probably gotten better at their craft as well.
So far, the states most impacted by lawsuits are New York, California and Florida. New York had 55% of the lawsuits in 2023, which speaks to the law firms specializing in this type of law. Of note, your firm does not need to have a physical presence within a state to have legal action brought against it. Any company with a digital presence (e.g., a website) can have legal action initiated.
How Common are ADA Website Lawsuits?
ADA web accessibility lawsuits are common. Law firms have focused primarily on Fortune 2000 companies but the next wave of action is coming.
The numbers referenced above are cases that went to trial. In reality, many cases are settled in out-of-court agreements, voluntarily withdrawn, or dismissed.
How to avoid ADA risk?
Taking proactive steps to reduce your risk is the most prudent step. Here are several tips:
1. Research state and local laws - Many states have implemented web legislation that is stricter than the federal ADA requirements.
2. Ask your insurance carrier about EPLI coverage - Employment practices liability insurance (EPLI) may protect your risk.
3. Update your website to ADA website standards
Actions to take if you receive a demand letter
1. Demand letter - A demand letter is a formal notice indicating that your website is non-compliant with ADA standards. The letter will state issues identified, may demand corrective action, and compensation.
2. Responding to demand letter - Engage a lawyer with ADA compliance expertise. Normally, you need to respond in 20 to 30 days from date of receipt. This is a very short window.
3. Build a defense - With advice from your lawyer, outline your response and propose a plan to address issues.
If you have been able to fly under the radar screen so far, use this opportunity to shift gears from a legal and ethical standpoint. The short answer is all businesses need to comply so make sure your website is ADA-accessible.
ADA compliance is not just a matter of good corporate citizenship, it's a shield from costly litigation and damage to your firm reputation.
ADA Compliant Websites for CPA Accountants and Tax Professionals
Build Your Firm designs ADA Compliant Websites for accountants. To see examples, click the link to ADA Compliant websites for CPA accountants and tax professionals.
