FTC Fines AccessiBe $1 Million for False Advertising and Deceptive Marketing Practices

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Starfolk

January 03, 2025 · 3 min read
FTC Fines AccessiBe $1 Million for False Advertising and Deceptive Marketing Practices

The US Federal Trade Commission (FTC) has slapped accessiBe, a New York-based startup, with a $1 million fine for falsely advertising its website accessibility tools and compensating reviewers without disclosing the sponsored content. In a proposed order, the FTC has also prohibited accessiBe from overstating the capabilities of its tools and mandated the company to "clearly and conspicuously" highlight connections to endorsers of its services.

AccessiBe, founded in 2018, sells an AI-powered plug-in that claims to make any website compliant with the Web Content Accessibility Guidelines (WCAG), a set of technical criteria used to assess website accessibility. The company pitches its services as a shield against lawsuits for noncompliance with the American with Disabilities Act (ADA), the federal civil rights law that protects people with disabilities from discrimination. However, many advocacy groups and customers have accused accessiBe's products of not working as advertised, with some even rendering webpages unnavigable for blind and low-vision users.

According to the FTC, accessiBe "deceptively formatted third-party articles and reviews" to appear as if they were independent opinions by impartial authors, and failed to reveal "material connections" to supposedly objective reviewers. This deceptive marketing practice has led to widespread criticism from the accessibility community, with the National Federation of the Blind describing accessiBe's marketing and business practices as "disrespectful and misleading" in 2021.

In addition to the fine, the proposed order will require accessiBe to pay $1 million that may be used to refund the company's customers. The order will also subject accessiBe to strict guidelines on advertising and marketing, ensuring that the company does not continue to mislead customers about the capabilities of its tools. The FTC's action is a significant step towards holding companies accountable for their accessibility claims and protecting the rights of people with disabilities.

The FTC's decision comes at a time when website accessibility is becoming increasingly important. In 2021, more than 400 companies with an accessibility widget or overlay on their website were sued over accessibility, according to digital accessibility provider UsableNet. The rise of automated accessibility tools has led to concerns about the effectiveness of these solutions, with many advocacy groups calling for more rigorous testing and evaluation of these products.

AccessiBe is not the only vendor selling automated accessibility tools for websites, but its aggressive marketing practices and lofty claims have drawn particular scrutiny. The company's defensive and dismissive style of engagement with the accessibility community has also been criticized, with many calling for more transparency and accountability in the industry.

The FTC's order is subject to public comment for 30 days, after which the Commission will decide to make it final. The decision is a significant step towards promoting truth-in-advertising and protecting consumers, particularly those with disabilities, from deceptive marketing practices.

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