ADA Title III: Private Business Digital Accessibility

High Litigation Risk

Over 8,800 ADA Title III lawsuits were filed in 2024, with digital accessibility cases comprising nearly half. Private businesses are the primary target.

What is ADA Title III?

Title III of the Americans with Disabilities Act prohibits discrimination against individuals with disabilities by private entities that operate "places of public accommodation." While the ADA was enacted in 1990 before the widespread use of the internet, courts have increasingly interpreted Title III to apply to websites and digital services.

Unlike ADA Title II (which now has specific WCAG requirements for government entities), Title III does not yet have formally codified web accessibility regulations. However, the Department of Justice consistently takes the position that websites of public accommodations must be accessible, and courts routinely cite WCAG 2.1 Level AA as the applicable standard in settlements and consent decrees.

Who Must Comply?

ADA Title III applies to private entities that own, lease, or operate "places of public accommodation." The ADA lists 12 categories:

  • Hotels and lodging
  • Restaurants and bars
  • Theaters and entertainment venues
  • Retail stores and shopping centers
  • Banks and financial institutions
  • Gas stations and service stations
  • Transportation terminals
  • Healthcare providers
  • Gyms and recreation facilities
  • Private schools and educational institutions
  • Social service centers
  • Museums and galleries
Courts have applied Title III to online-only businesses as well, particularly when goods or services can be accessed by the public. E-commerce, SaaS platforms, and digital service providers should treat accessibility as a legal requirement.

Legal Landscape

DOJ Position

The Department of Justice has consistently stated that websites of public accommodations must be accessible. In settlement agreements and statements of interest, DOJ has endorsed WCAG 2.1 Level AA as the applicable standard.

Court Decisions

Federal courts are split on whether websites must have a "nexus" to a physical location:

  • Nexus required: Some circuits (e.g., 9th Circuit) have held websites must connect to a physical place of public accommodation
  • No nexus required: Other circuits (e.g., 1st, 7th, 11th) have found websites themselves can be places of public accommodation
  • Practical effect: Most businesses with both physical and digital presence are clearly covered; online-only businesses may face varying requirements depending on jurisdiction

Expected Rulemaking

Following the April 2024 Title II rule, DOJ is expected to issue a similar rule for Title III. Until then, WCAG 2.1 Level AA remains the de facto standard used in litigation.

Litigation Statistics (2024)

8,800+

Total ADA Title III Lawsuits

4,187

Digital Accessibility Lawsuits

7%

Increase from 2023

$6M+

Largest Class Settlement

Most Targeted Industries

Retail (30%)
Food Service (20%)
Hospitality (15%)
Healthcare (15%)
Other (20%)

Common Website Barriers Cited in Lawsuits

Barrier Type WCAG Criterion Impact
Missing alt text on images 1.1.1 Non-text Content Screen reader users cannot understand images
No video captions 1.2.2 Captions (Prerecorded) Deaf/hard-of-hearing users miss audio content
Poor color contrast 1.4.3 Contrast (Minimum) Low vision users cannot read text
Inaccessible forms 1.3.1 Info and Relationships Screen reader users cannot complete forms
Keyboard traps 2.1.2 No Keyboard Trap Keyboard users get stuck in page elements
Missing focus indicators 2.4.7 Focus Visible Keyboard users cannot see where they are
Missing form labels 3.3.2 Labels or Instructions Screen reader users don't know what to enter
Inaccessible PDFs Multiple criteria Documents cannot be read by assistive tech

Costs of Non-Compliance

Legal Costs
  • Settlement costs: $10,000 - $100,000+ (typical)
  • Plaintiff attorney fees: Often exceed damages
  • Defense costs: $5,000 - $50,000+
  • Class action settlements: $500,000 - $6M+
Business Impact
  • Reputational damage
  • Lost customers (15%+ of market has disabilities)
  • Emergency remediation costs
  • Ongoing monitoring requirements

Proactive Compliance Steps

  1. Conduct an accessibility audit
    Use automated tools (WAVE, axe) combined with manual testing to identify barriers
  2. Prioritize high-impact fixes
    Address critical barriers on homepage, checkout, account, and key user journeys first
  3. Train your team
    Ensure developers and content creators understand WCAG requirements
  4. Publish an accessibility statement
    Demonstrate commitment and provide contact for accessibility issues
  5. Implement continuous monitoring
    Build accessibility into your development and testing processes
  6. Consider obtaining a VPAT
    Voluntary Product Accessibility Template documents your compliance status
Legal Quick Facts
Formal Web Standard
None (Title III rulemaking pending)
De Facto Standard
WCAG 2.1 Level AA
Enforcement
DOJ + Private Lawsuits
Typical Settlement
$10,000 - $100,000+
Statute of Limitations
Varies by state (often 2-4 years)
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