WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced a settlement requiring software provider accessiBe to pay $1 million over allegations that its AI-powered web accessibility tool, accessWidget, misrepresented its capabilities. The order comes after the FTC determined that the company’s claims misled businesses and consumers about the effectiveness of its product in ensuring website compliance with Web Content Accessibility Guidelines (WCAG).
The FTC’s complaint alleges that accessiBe falsely marketed its web plug-in as capable of making any website fully WCAG-compliant, a comprehensive standard designed to ensure digital accessibility for people with disabilities. The company promoted these claims across its website, social media, and seemingly independent third-party articles, which the FTC found were deceptively formatted to appear objective while concealing accessiBe’s connection to the content.
Under the terms of the proposed settlement, accessiBe is prohibited from making unsubstantiated claims regarding the capabilities of its products, particularly assertions that its tools can achieve WCAG compliance for websites. Furthermore, the company must refrain from misrepresenting endorsements or reviews as impartial and must disclose any material connections between its products and endorsers.
The $1 million penalty is intended for potential refunds to impacted consumers. The proposed settlement will undergo a 30-day public comment period before the FTC considers final approval. Once finalized, any violations of the order could result in significant financial penalties, with individual breaches carrying fines of up to $51,744.
The settlement exemplifies the FTC’s efforts to ensure transparency and accountability in digital marketing, particularly as businesses increasingly rely on AI-powered technologies to meet regulatory standards.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.