The U.S. Federal Trade Commission (FTC) has ordered accessiBe, a New York-based startup that markets AI-driven website accessibility tools, to pay $1 million for misleading advertising practices. The penalty, outlined in a proposed order, follows allegations that the company exaggerated its product’s capabilities and compensated reviewers without disclosing their sponsorship.
The FTC’s order aims to prevent accessiBe from overstating its tools’ effectiveness and requires the company to clearly disclose its relationships with endorsers. The $1 million fine may be used to refund customers who relied on accessiBe’s claims.
Samuel Levine, director of the FTC’s Bureau of Consumer Protection, emphasized the importance of honest advertising in accessibility products. “Companies looking for help making their websites compliant must be able to trust that products do what they are advertised to do,” he said in a statement. “Overstating a product’s capabilities without adequate evidence is deceptive, and the FTC will act to stop it.”
Founded in 2018, accessiBe offers a plug-in designed to make websites compliant with the Web Content Accessibility Guidelines (WCAG) and shield businesses from lawsuits under the Americans with Disabilities Act (ADA). Backed by $58.5 million in venture capital, its customer base has included high-profile clients like Pillsbury, Playmobil, and the Louisiana Department of Health.
However, accessiBe has faced growing criticism from advocacy groups and users, who argue that its tools often fail to improve website accessibility and can even worsen user experiences. Screen readers, vital for blind and low-vision users, sometimes struggle to navigate websites equipped with accessiBe’s plug-in.
These shortcomings have led to legal challenges and public backlash. In 2021, more than 400 blind users, accessibility advocates, and developers signed an open letter urging companies to avoid automated tools like accessiBe’s. That same year, the National Federation of the Blind described accessiBe’s business practices as “disrespectful and misleading.”
Adding to the scrutiny, lawsuits have alleged that accessiBe’s products fail to meet ADA standards, leaving its customers vulnerable to litigation. UsableNet, a digital accessibility provider, reported that over 400 companies using similar tools were sued for accessibility noncompliance in 2021.
The FTC’s investigation revealed further concerns about accessiBe’s marketing tactics. The agency found that the company had deceptively formatted third-party reviews to appear independent and failed to disclose its financial ties to these reviewers.
While the proposed order has been unanimously approved by the FTC’s five commissioners, it will undergo a 30-day public comment period before being finalized.
Featured image courtesy of Bitcoinist
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