In recent years, small business owners have become increasingly vulnerable to lawsuits alleging violations of the Americans with Disabilities Act (ADA). This surge in legal action has become a major concern for entrepreneurs. That’s because many people report being targeted without clear compliance guidelines. This predicament is illustrated by the experience of Clay*, an online store owner who was dismayed when he received a legal notice regarding the accessibility of his website. His reflections highlight the anxiety many small business owners face as they navigate these turbulent legal waters.
Established in 1990 to increase accessibility for people with disabilities, the ADA has unintentionally become a tool for predatory lawyers. Recent reports from organizations such as the U.S. Chamber of Commerce’s Legal Reform Institute highlight that the majority of ADA-related lawsuits often focus on reaching settlements rather than promoting actual accessibility improvements. “Thirty years after the court, the majority of ADA lawsuits have nothing to do with accessibility,” the report said.
The incredible statistics speak for themselves. Since 2013, the number of ADA lawsuits has skyrocketed, peaking in 2021 with more than 12,000 lawsuits. This is an increase of almost 400% compared to the previous year. Many small business owners are pressured to settle, paying huge sums out of court rather than engaging in a costly and protracted legal battle. Clay explains this dilemma perfectly. “Instead of investing back into the company and investing in the employees that could have a better economic impact on their families, it went into the pockets of some lawyers.”
These high-stakes lawsuits do more than drain financial resources. This hinders innovation and creativity in small and medium-sized businesses. Business owners are increasingly hesitant to change or improve their websites for fear of legal scrutiny. “I had to pay this guy $10,000 because he exploited a rule change I didn’t know about,” says Sean*, who has faced multiple lawsuits. The lack of accessibility compliance standards leaves businesses operating in a state of ambiguity and raises questions about what constitutes “reasonable” accessibility for online platforms.
The problem goes beyond the financial burden. For many owners, the emotional toll of facing a lawsuit is equally difficult. Grace*, a food and beverage entrepreneur, shared the harrowing experience of receiving legal papers on her birthday, saying: «It was mentally taxing and scary. Entrepreneurs don’t start a business thinking about these things.» The emotional burden of dealing with these lawsuits often overshadows the primary goal of growing your business.
Shopify is proactively responding to these challenges by providing solutions tailored to small and medium-sized businesses. The company provides accessibility-optimized web components and tools, such as automated alternative text generation. However, creating an ADA-compliant website requires ongoing maintenance, which can be resource-intensive for small teams on a tight budget. Owners like Grace complain about the inadequacy of current guidelines, noting that compliance ambiguities can turn trying to update a website into a risky venture.
Currently, several advocates and organizations, including the National Federation of the Blind, are pushing for legislative reforms known as “notice and cure” laws. These proposals would create an environment of cooperation rather than conflict by giving small business owners the opportunity to correct accessibility issues before they face legal action. Clay emphasizes the importance of this initiative, saying, “We want fair access, but these lawsuits are undermining the integrity of the ADA.”
If reform is not implemented, there is a high possibility that the vicious cycle of predatory litigation will continue, jeopardizing the future of small and medium-sized businesses across the country. A clear, standardized set of ADA compliance guidelines can alleviate many concerns, allowing business owners to focus on customer service rather than legal risk management.
As these challenges continue, it is important for small business owners to stay informed and advocate for meaningful reforms that support both accessibility and economic sustainability. By fostering open dialogue between businesses and disability advocates, we can achieve inclusive market goals that truly benefit everyone.
To read Shopify’s original press release, visit: Shopify News.
