In today’s digital marketplace, overlooking the accessibility of your website isn’t just a technical oversight—it’s a legal and financial pitfall that could jeopardize your entire business. As consumers increasingly flock to online shopping, retailers have a critical responsibility to ensure their websites are accessible to everyone, including people with disabilities. Failing to meet ADA compliance requirements isn’t just non-compliance; it’s an open invitation to lawsuits, hefty fines, and damaging publicity. The clock is ticking, and the stakes have never been higher. Is your business prepared to face the consequences of an inaccessible website?

Understanding ADA Compliance and Accessibility Laws

The Americans with Disabilities Act (ADA) was passed in 1990 to ensure that individuals with disabilities have equal access to public spaces. While the law was initially focused on physical spaces, such as stores and offices, the scope has expanded with the rise of the Internet. Today, many courts interpret the ADA as applying to websites, meaning retailers’ websites must be accessible to people with disabilities, including those who are blind, deaf, or have other impairments.

ADA Guidelines for Web Accessibility

Under ADA guidelines, businesses must make reasonable accommodations for disabled individuals by ensuring that their websites are usable by people who rely on screen readers, text-to-speech software, and other assistive technologies. If your website doesn’t meet these requirements, you might find yourself at risk for a lawsuit.

What Are the Legal Risks for Retailers?

If your website isn’t accessible, your business could be exposed to legal action. Retailers face the possibility of demand letters from law firms representing plaintiffs with disabilities. These letters often demand that companies make changes to their websites and may include a settlement request to avoid a lawsuit. A formal lawsuit could follow if these demands are ignored or if the retailer refuses to comply with ADA compliance.

Common Accessibility Issues in Lawsuits

• Images without Alt Text: Alt text describes the content of an image for screen readers. Missing alt text excludes visually impaired users from critical information.
• Unlabelled Form Fields: Forms need clear labels and instructions for accessibility. Missing labels can lead to frustration and abandoned purchases.
• Unclear or Missing Headings: Headings help organize content, making it easier for visually impaired users to navigate.
• Non-Keyboard Accessible Navigation: Some users rely on keyboard shortcuts instead of a mouse. Websites not designed for keyboard navigation can exclude these users.

The Cost of Non-Compliance

So, what happens when a retailer faces a lawsuit or demand letter for not meeting ADA compliance?

Legal Costs

Defending against a lawsuit can be expensive, even if you ultimately win. The average cost of defending a web accessibility lawsuit can run tens of thousands of dollars. This does not include legal fees for settlements or necessary website updates.

Settlements

Many retailers choose to settle lawsuits rather than risk the expense and uncertainty of court. Settlement amounts can vary but often reach six figures. Additionally, companies must typically commit to updating their website for compliance, further adding to costs.

Fines

While the ADA itself doesn’t specify fines, related laws, like the Rehabilitation Act, require federal agencies to ensure accessibility. Violations can lead to significant fines, especially for businesses that accept federal funds or contracts.

Damage to Brand Reputation

Beyond legal costs, lawsuits over website accessibility can damage a brand’s reputation. A public lawsuit can erode consumer trust, lead to negative media coverage, and even cause loyal customers to lose faith in the inclusivity of your business.

Loss of Customers and Sales

The financial impact doesn’t stop with legal costs. Inaccessible websites exclude millions of potential customers, especially those with visual impairments. Poor user experiences can lead to lost sales and customer frustration.

Big Brands, Bigger Penalties

Web accessibility is no longer a theoretical risk—it’s a pressing reality affecting retailers across industries. In recent years, well-known brands have faced significant legal challenges for not meeting ADA compliance standards, underscoring the tangible consequences of non-compliance. Notable cases include:

Target Corporation Settlement

In a landmark 2006 case, the National Federation of the Blind (NFB) sued Target Corporation, arguing that its website’s inaccessibility violated the ADA, barring blind users from equal access to online services. This case culminated in a $6 million settlement in 2008, with Target committing to WCAG 2.0 standards. The settlement set a powerful precedent, establishing that websites are indeed extensions of physical stores and must comply with ADA standards.

Beyoncé’s Parkwood Entertainment

In 2019, a lawsuit against Parkwood Entertainment—the company managing Beyoncé’s official website—brought celebrity and entertainment sites into the accessibility spotlight. The case highlighted key issues, like missing alt text and inaccessible navigation, underlining that ADA compliance requirements extend to all online sectors.

Dick’s Sporting Goods

In 2021, Dick’s Sporting Goods faced a lawsuit over a lack of accessible design elements, from missing alt text to insufficient screen reader support. This case reaffirmed that even leading retailers are vulnerable if they overlook essential accessibility features.

A Surge in Accessibility Lawsuits and the E-Commerce Sector

The growing number of lawsuits drives home the urgency for retailers to proactively address web accessibility. According to Useablenet in 2023 alone, more than 4,600 ADA-related website accessibility cases were filed, with 82% targeting the retail sector. As consumers increasingly rely on online shopping, accessibility becomes essential for retailers to stay competitive and inclusive.

Why E-Commerce Faces Elevated Legal Risks

Retailers with online sales channels, particularly in e-commerce, face intensified scrutiny as customers with disabilities encounter persistent barriers to shopping online. According to the U.S. Center of Disease Control, 7.6 million Americans with visual impairments struggle with inaccessible websites, translating to missed revenue opportunities. By not prioritizing accessibility, e-commerce retailers risk losing out on an estimated $7 trillion in annual spending from the global disability market.

The message is clear: the cost of non-compliance is high, and accessibility lawsuits are on the rise. For retailers, these cases underscore the importance of making accessibility a strategic priority to safeguard brand reputation and revenue alike.

How to Avoid the Legal Pitfalls

If you’re a retailer, the best way to avoid legal issues is to proactively make your website accessible. Here’s how to get started:

Conduct an Accessibility Audit

Use accessibility tools or hire an expert to evaluate your website. Many free and paid tools are available to help identify common accessibility issues.

Follow WCAG Guidelines

The Web Content Accessibility Guidelines (WCAG) set the standard for web accessibility, covering elements like text readability, video captioning, and more.

Train Your Team

Ensure that your website’s content managers are trained in accessibility best practices, helping you avoid common errors and keep your site compliant with updates.

Stay Informed

Accessibility laws and best practices are evolving, so it’s essential to stay updated on the latest requirements and trends.

Secure Your Website’s Future

ADA compliance isn’t just a legal obligation—it’s an opportunity to make your website more inclusive and accessible to a wider audience. Retailers who fail to make their websites accessible face serious legal risks, including lawsuits, legal fees, and damage to their brand’s reputation. On the flip side, ensuring your website is accessible to all users can boost customer trust, loyalty, and, ultimately, sales. By taking the necessary steps to make your website compliant with ADA standards, you protect your business and demonstrate your commitment to inclusivity.

So, take action today to ensure your website is accessible. Your customers—and your bottom line—will thank you!

For personalized guidance on making your website ADA compliant, reach out to 216digital for an ADA briefing. Our experts are here to help you navigate the complexities of web accessibility and secure your business against potential legal risks.