Small business owners across the United States are facing a growing threat: a wave of lawsuits alleging non-compliance with accessibility laws. With the rapid rise in litigation under the Americans with Disabilities Act (ADA), many entrepreneurs are feeling targeted by an increasingly predatory legal system. The financial and emotional toll of these lawsuits is forcing businesses to make tough decisions, often at the expense of growth and innovation.
Take the example of Clay*, an online store owner who recently found himself in the crosshairs of such litigation. “Everything was going great, and we were having our best year ever. Then I woke up to an email from an attorney that made my heart sink,” he recalls. Like thousands of others, Clay discovered that ambiguous standards around website accessibility left him vulnerable to a lawsuit. “We want to make improvements to improve access… But there’s no clear standard to achieve,” he adds.
Since the ADA’s enactment in 1990, its purpose has been to ensure that individuals with disabilities can fully participate in society. However, recent reports highlight how some lawyers exploit this noble intent for profit. According to a 2023 report from the U.S. Chamber of Commerce Institute for Legal Reform, much of the current ADA litigation is characterized by abusive lawsuits disconnected from the mission of ensuring accessibility.
The numbers tell a troubling story. From 2013 to 2021, ADA lawsuits increased nearly 400%, peaking at over 12,000 filings in 2021. Many small business owners are opting to settle these cases out of court, leading to a financial drain that diverts funds away from operational growth and employee investment. “Instead of investing back into the company… it went into some attorney’s pocket,” Clay laments.
The settlements derived from these cases rarely contribute to meaningful improvements in accessibility. Rather, they primarily serve the interests of exploitative lawyers and plaintiffs. For instance, more than 80% of ADA cases come from what are termed “high-volume plaintiffs” — individuals who file multiple lawsuits each year. States like New York, California, and Florida have become hotspots for these predatory practices, where the potential for substantial damages under ADA laws incentivizes opportunistic litigation.
This issue is not unique to Clay. Sean, a founder of a watch brand, experienced similar frustrations after being sued twice. “I had to pay $10,000 to this guy because he exploited a change in a rule I didn’t know about,” he explains, underscoring the unpredictable nature of compliance. Grace, who runs a food and beverage company, was served legal papers on her birthday and found herself embroiled in a lawsuit that demanded $30,000, a sum that was financially crippling for her small operation.
Grace reflected on her year-long battle, saying, “It would be the first thing I thought about when I woke up every morning. It was mentally taxing and scary. Entrepreneurs don’t go into business thinking about these things.”
The uncertainty surrounding what “reasonable accessibility” entails can overwhelm small business owners. There are no straightforward guidelines for web compliance, and for many, the ADA’s application to online platforms is still a subject of debate in federal courts. Moreover, small businesses often lack the resources to consult with specialized web developers to address potential compliance issues.
Some business owners have tried to take proactive measures, making accessibility updates to their websites. However, many found that the legal representatives showed little interest in genuine compliance once their settlement check was cashed. “There was no follow-up. They just wanted how fast they could get the money,” says Clay.
In light of these frustrations, some advocates are beginning to push for legislative reforms like “notice and cure” laws. This proposed framework would allow businesses time to rectify alleged accessibility violations before being subject to legal action. Such a measure could shift the focus from litigation to collaboration, enabling entrepreneurs to make the necessary adjustments without the fear of immediate legal retribution.
As small business owners navigate this challenging landscape, the need for clear, actionable guidance on ADA compliance is more critical than ever. Standardized procedures could reduce uncertainty and provide the support needed to foster true accessibility for all consumers. Clay expresses a sentiment echoed by many in the small business community: “If a person with a disability approached me and let me know they were having difficulty with my site, I would have gone to the ends of the earth to help solve the problem. We want to be accessible to more people… It’s mutually beneficial for us to have a more accessible site.”
Promoting accessibility shouldn’t come at the expense of the small businesses that strive to serve all customers. As the wave of litigation continues to rise, the push for reform and clear standards must align to ensure that both businesses and individuals with disabilities can thrive.
For more insight into this pressing issue, visit the original report here.
Image Via BizSugar
