The FTC wants AI Startup accessiBe to pay $1 million for false advertising
The Federal Trade Commission (FTC) has proposed accessiBe, an AI-driven web accessibility software provider, to pay $1 million to settle allegations of deceptive advertising regarding its flagship product, accessWidget. The settlement resolves claims that accessiBe falsely promoted its tool as being capable of making any website compliant with the Web Content Accessibility Guidelines (WCAG) for users with disabilities.
The allegations
The FTC’s complaint stated that accessiBe’s claims about accessWidget’s ability to achieve WCAG compliance were false, misleading, and unsubstantiated, violating the FTC Act. While accessiBe marketed its product as a solution for full website accessibility, the FTC found that the tool fell short of ensuring compliance with the comprehensive technical standards required by WCAG.
Additionally, the FTC alleged that accessiBe manipulated third-party reviews to appear as independent and impartial endorsements. The company reportedly failed to disclose material connections to reviewers, further misleading potential customers about the product’s credibility and effectiveness.
Speaking on the issue, Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the importance of truth in advertising, particularly for products aimed at addressing accessibility challenges.
“Companies looking for help making their websites WCAG compliant must be able to trust that products do what they are advertised to do. Overstating a product’s AI or other capabilities without adequate evidence is deceptive, and the FTC will act to stop it,” he said.
Terms of settlement
The proposed settlement imposes several requirements on accessiBe to prevent future deceptive practices:
Evidence-Based Claims: AccessiBe is prohibited from claiming its products can make websites WCAG-compliant or maintain compliance over time unless it has evidence to support such assertions.
Transparent Marketing: The company must refrain from misrepresenting its products’ features, performance, or benefits, and from presenting third-party reviews or endorsements as independent when they are not.
Disclosure Obligations: AccessiBe must clearly disclose any material connections between endorsers and its products.
Financial Penalty: The $1 million payment will be used to refund affected customers.
Next steps
The FTC’s proposed order will be published in the Federal Register and open for public comment for 30 days before the Commission decides whether to finalize it. If made final, the order will carry the force of law, and violations could result in penalties of up to $51,744 per infraction.
