A non-public lawsuit against a small online retailer demonstrates the financial and remedial burden of ADA demand letters on businesses of all sizes.
A small online retail business (let’s call it “Kramer Knives”) based in the U.S. sold specialty knife cases and accessories through its website. The owner operated the business with **fewer than 10 employees** and relied heavily on online traffic for sales.
In mid-2023, the business was notified that its website did not meet accessibility standards for customers using screen readers and other assistive technologies. The issues cited included problems with **missing alt-text, improper headings, inaccessible forms, and keyboard navigation failures**.
In late 2023, a law firm sent a **demand letter** to the small business alleging that the website violated the Americans with Disabilities Act (ADA) by not providing “meaningful access.”
The process moved relatively quickly: The demand letter was sent in late 2023, followed by legal fees and negotiations in the first quarter of 2024, with a settlement reached by mid-2024.
According to published reports, the owner of the business spent approximately **US $16,000 in legal fees** before any settlement negotiations. The law firm offered to settle the matter for US $20,000 and some remedial website modifications.
The website owner accepted the settlement offer of about **US $20,000** (plus legal fees) rather than face full litigation, highlighting the punitive cost of non-compliance for small businesses.
Though the business was small, the risk and cost of litigation escalated rapidly once the demand letter arrived, forcing the owner to prioritize digital accessibility moving forward.
DEMAND
LETTER RISK
The vast majority of website accessibility cases are resolved via settlement before court filing.
At GetADAAlert, we specialize in helping financial institutions, insurance companies, and fintech brands identify and fix accessibility risks before they escalate into lawsuits. Our detailed ADA audits and WCAGcompliance reports help ensure safe, accessible, and inclusive banking experiences.