Missouri lawmakers take action to prevent ‘predatory’ ADA lawsuits against small businesses

More than a hundred locally owned businesses in Missouri have faced lawsuits revolving around the Americans with Disabilities Act (ADA) compliance on their websites. Lawmakers in Jefferson City and Washington, D.C. are working to shield small businesses from predatory lawsuits. The Act Against Abusive Website Access Litigation bill introduced in the House requires businesses to have a 90-day window to rectify issues on their websites before facing a lawsuit. This bill specifically mandates reasonable notice before legal action is taken and has passed the House, heading for Senate discussions.

Numerous lawmakers have voiced their concerns, highlighting how attorneys are exploiting minor ADA non-compliance issues on business websites to secure settlements quickly without intending to address the actual violations. In tandem with state efforts, U.S. Rep. Sam Graves has introduced the Protecting Small Businesses from Predatory Website Lawsuits Act. This federal initiative strives to prevent businesses from being used as mere sources of settlement payouts for attorneys and aims to halt the rising trend of website-related lawsuits targeting small businesses. Graves stressed the importance of protecting hardworking business owners, emphasizing that such lawsuits are merely motivated by financial gain rather than ensuring an inclusive and accessible platform.

State lawmakers have echoed these sentiments, with various businesses that have fallen victim to these lawsuits testifying in support of HB 1694. Individuals like Sandy Waggett from MSW Interactive Design and Scott Fetterman from Fetterman’s Deli shared their experiences of being unfairly targeted for minor non-compliant website elements. Suffering the repercussions, insiders like Fetterman faced the dilemma of temporarily shutting down their websites due to vague compliance demands in demand letters.

State Sen. Mike Bernskoetter presented a similar bill in the Senate, which would grant businesses 30 days to address issues upon notification. The proposed legislation outlines a comprehensive criteria to delineate abusive lawsuits, factoring in the number of employees, available resources, and underlying jurisdictional factors.

During legislative deliberations, concerns were raised regarding the secrecy surrounding lawsuit settlements through nondisclosure agreements, shielding crucial financial details from public scrutiny. Small-business owners like Rep. Vernetti expressed their dismay over the exorbitant costs and detrimental impacts these lawsuits had on their operations. This sentiment was echoed by Rep. Seitz, who vehemently condemned such legal practices as exploitative and predatory in nature.

Recognizing the need for collective action, several Missouri Chambers of Commerce and numerous state representatives have joined forces to address the issue. Through a consolidated effort, multiple bills targeting predatory ADA lawsuits have been amalgamated into a comprehensive legislative strategy to ensure businesses focus on remedying compliance issues rather than fueling frivolous lawsuits. By holding accountable those engaging in exploitative legal tactics, these legislative initiatives aim to safeguard the interests of small businesses across Missouri.