FTC Orders Accessibe to Pay $1M for Misleading AI Accessibility Claims

FTC Fines accessiBe for Misleading Accessibility Claims

The U.S. Federal Trade Commission (FTC) has levied a fine against accessiBe, a company specializing in website accessibility solutions. The allegations center around false advertising and a failure to disclose sponsored reviews.

Proposed FTC Order and Penalties

A proposed order from the FTC mandates that accessiBe pay $1 million. These funds are intended for potential refunds to customers.

Furthermore, the order prohibits the company from exaggerating the capabilities of its accessibility tools. It also requires clear and conspicuous disclosure of any connections to individuals endorsing their services.

FTC's Stance on Website Accessibility

Samuel Levine, director of the FTC’s bureau of consumer protection, emphasized the importance of trustworthy accessibility products. He stated that overstating a product’s abilities without sufficient evidence constitutes deceptive practice, and the FTC will intervene to prevent such actions.

accessiBe's Technology and Market Position

accessiBe, based in New York, offers an AI-powered plug-in designed to bring websites into compliance with the Web Content Accessibility Guidelines (WCAG). These guidelines are the standard for evaluating website accessibility.

The company markets its services as a means of mitigating legal risks associated with non-compliance with the Americans with Disabilities Act (ADA), a federal law protecting individuals with disabilities.

Company History and Funding

Founded in 2018 by Dekel Skoop, Gal Vizel, and Shir Ekerling, accessiBe has secured $58.5 million in venture capital. Investors include the private equity firm K1, located in Los Angeles.

Notable past customers have included major brands like Pillsbury and Benadryl, as well as organizations such as the Los Angeles Lakers and the Louisiana Department of Health.

Criticism and Concerns Regarding Effectiveness

Despite its funding and customer base, accessiBe’s products have faced significant criticism. Many advocacy groups and users question their actual effectiveness.

Screen readers, used by individuals with visual impairments, can experience difficulties when interacting with websites utilizing tools like accessiBe’s. This can lead to incorrect page readings or even render websites unusable.

Customers have initiated class action lawsuits alleging that accessiBe’s products failed to deliver full ADA compliance.

Industry and Advocacy Group Responses

The National Federation of the Blind publicly criticized accessiBe’s marketing and business practices in 2021, labeling them as “disrespectful and misleading.”

That same year, an open letter signed by over 400 individuals – including blind users, accessibility advocates, and software developers – urged companies to discontinue the use of automated accessibility services like accessiBe’s.

UsableNet reports that in 2021, over 400 companies faced lawsuits related to accessibility issues stemming from website widgets and overlays.

FTC Findings on Deceptive Practices

The FTC determined that accessiBe not only failed to meet its advertised promises but also engaged in misleading marketing tactics.

Specifically, the agency found that accessiBe manipulated the presentation of third-party articles and reviews to create the impression of independent, unbiased opinions. Furthermore, they failed to disclose material connections to reviewers.

Next Steps and Public Comment

The FTC’s order received unanimous approval from all five commissioners. It is now open for a 30-day public comment period. Following this period, the Commission will decide whether to finalize the order.