Cannabis Industry Hit with Website ADA Non-Compliance Lawsuits in 2022 – Who’s Next?

Originally published July 15, 2022

The cannabis industry has always been ahead of the curve when it comes to understanding complex regulatory landscapes. Unfortunately, many cannabis businesses discovered in 2022 that digital accessibility compliance wasn’t getting the same attention as their other compliance efforts. Under Title III of the Americans with Disabilities Act (ADA), operating a website that isn’t broadly accessible is essentially an open invitation for litigation – and the cannabis industry learned this lesson the hard way.

Here’s the reality: accessibility requirements, serial lawsuits, and the attorneys who profit from enforcing them aren’t disappearing anytime soon. The most effective defense remains straightforward – build accessibility into your digital presence from the ground up. Incorporating WCAG 2.1 standards from the beginning costs significantly less than retrofitting accessibility after launch. Cannabis startups that embrace accessible design from day one position themselves for long-term success while avoiding costly legal battles.

Understanding the Legal Landscape for Cannabis Digital Accessibility

The Americans with Disabilities Act became law 32 years ago on July 26, 1990, establishing clear prohibitions against disability-based discrimination. Businesses and organizations serving the public must provide equal access and accommodations for people with disabilities. This requirement extends to all digital assets accessible via the internet – websites, mobile applications, video content, and any other online touchpoints are considered “public domains” under ADA law.

When cannabis businesses fail to meet these compliance standards, they face potential civil rights violations that can result in significant legal and financial consequences.

What Title III Means for Cannabis Businesses

Title III of the ADA mandates accessibility for websites that affect interstate commerce and fall under specific business categories. The cannabis industry, with its diverse ecosystem of businesses, includes numerous entities that must comply with these regulations:

Cannabis Direct Operations:

• Dispensaries and retail locations
• Delivery services
• Cultivation facilities with direct sales
• Processing and manufacturing companies

Cannabis Ancillary Businesses:

• Packaging and labeling companies
• Security and transport services
• Testing laboratories
• Equipment suppliers (vaping devices, consumption tools)
• E-commerce platforms

Supporting Industries:

• Marketing and design agencies
• Media networks and publications
• Banking and financial services
• Payroll and accounting firms
• Point-of-sale system providers
• Software and mobile app developers
• Real estate and consulting services
• Compliance and legal services

The irony isn’t lost on industry observers – cannabis has been instrumental in opening conversations about disabilities, particularly around PTSD treatment for veterans and pain management solutions. Yet many cannabis businesses haven’t extended this inclusive mindset to their digital presence. Creating accessible websites isn’t just about legal compliance; it’s about genuine inclusion and serving all potential customers effectively.

The Growing Threat: Cannabis Website Litigation Trends

Between 2017 and 2022, website accessibility lawsuits tripled in frequency. During this period, individual plaintiffs filed lawsuits against more than 60 different businesses, with several targeting cannabis and CBD companies specifically for ADA non-compliance.

ADA-based digital accessibility cases exceeded 10 per day in 2021, totaling over 4,000 lawsuits nationally. The cannabis industry, with its rapid growth and digital-first business models, became an attractive target for serial litigation.

Serial plaintiffs and their legal teams systematically target entire industries with claims that company websites fail to provide the public accommodations required under Title III. Cannabis and CBD businesses face particular vulnerability, especially those operating without physical storefronts. For many consumers, these websites represent the primary – or only – means of accessing products and services.

State-by-State Variations in ADA Litigation

While ADA compliance requirements apply nationally, enforcement varies significantly by state. California leads in both ADA compliance standards and litigation volume. Since 1992, over 20,000 ADA lawsuits have been filed in California courts alone, costing businesses an estimated $20 million annually. The pandemic period saw increased serial lawsuit activity, with California-based plaintiffs pursuing cases nationwide for digital non-compliance.

This trend creates particular challenges for cannabis businesses operating in multiple states or serving customers across state lines through e-commerce platforms.

Understanding Your Customer Base: The Business Case for Accessibility

According to the CDC, approximately 61 million Americans live with some form of disability – roughly 25% of the population. This represents a substantial customer base with significant purchasing power, plus potential employees who deserve equal access to opportunities.

Digital accessibility improvements benefit three primary user groups:

1. Cognitive and Learning Disabilities: Users who benefit from clear navigation, consistent layouts, and simplified interfaces
2. Visual Impairments: Users with low vision, partial sight, or blindness who rely on screen readers and other assistive technologies
3. Mobility and Dexterity Limitations: Users who require keyboard navigation alternatives or have limited range of motion

The Screen Reader Example

Consider customers with visual impairments who depend on screen readers to navigate websites and access content. These assistive technologies only function properly when websites include proper coding elements, alternative text for images, and semantic structure. The World Wide Web Consortium (W3C) provides detailed WCAG 2.1 standards (with WCAG 2.2 updates released in 2022) that specify exactly how to accommodate these users.

When cannabis businesses fail to meet these standards, they effectively exclude these customers from accessing their products and services entirely.

Economic Impact and Market Opportunity

People with disabilities control $13 trillion in annual disposable income globally, making the disability community the largest minority group with significant retail influence. For cannabis businesses, this represents both a moral imperative and a substantial business opportunity.

The cannabis industry has already demonstrated commitment to serving specific disability-related needs – consider the veteran market, where many service members return with disabilities and rely on cannabis as part of their treatment plans. Veterans Administration facilities increasingly support cannabis treatment options, making this a natural customer segment for the industry.

Creating physical accommodations while ignoring digital accessibility sends mixed messages. It’s equivalent to posting a picture of a wheelchair ramp on your door instead of installing actual accessibility features – a superficial gesture that fails to provide real access.

2021-2022: High-Profile Cannabis ADA Cases

Several notable cannabis businesses faced federal accessibility lawsuits during this period, highlighting the industry’s vulnerability:

December 2021: Prospect Farms Hemp Sales, LLC, and Highline Wellness Inc. each faced separate federal complaints filed by a legally blind plaintiff. The lawsuits alleged that both companies’ websites “contain thousands of access barriers that make it difficult if not impossible for blind and visually-impaired customers to use the website.”

The plaintiff noted that “blind individuals have an even greater need than sighted people to shop and conduct transactions online due to mobility challenges,” emphasizing how digital barriers compound existing accessibility challenges.

July 2021: Caliva, the cannabis company backed by Jay-Z, faced litigation for failing to “design, construct, maintain, and operate its website to be fully and equally accessible to and independently usable by blind or visually-impaired people.”

These cases established important precedents, demonstrating that high-profile backing and substantial resources don’t protect businesses from accessibility litigation when basic compliance standards aren’t met.

Moving Beyond Compliance: Strategic Accessibility Implementation

Traditional approaches to accessibility often focus on one-time audits that identify problems without providing ongoing solutions. This audit-and-repeat model delivers lists of issues but doesn’t fix anything – leaving businesses and developers to figure out remediation on their own.

Effective cannabis digital accessibility requires a dynamic, ongoing approach similar to cybersecurity management. Issues emerge continuously as content updates, new features are added, and technologies evolve. A managed accessibility operations model addresses these challenges through:

Continuous Monitoring: Rather than periodic audits, ongoing assessment identifies issues as they arise, preventing small problems from becoming major compliance gaps.

Simultaneous Remediation: Instead of separate testing and fixing phases, issues are resolved as they’re discovered, maintaining compliance momentum and reducing development bottlenecks.

Expert Integration: Direct access to accessibility specialists who understand both technical requirements and business needs, providing guidance that keeps projects moving forward.

Agile Response: Flexibility to address urgent compliance needs while building long-term accessibility infrastructure.

Avoiding Common Accessibility Pitfalls

Many cannabis businesses make costly mistakes when approaching digital accessibility:

Overlay Solutions: Automated accessibility overlays claim to provide quick compliance fixes but often create additional legal exposure. These tools frequently interfere with assistive technologies and don’t address underlying accessibility barriers.

One-Time Fixes: Treating accessibility as a project rather than an ongoing process leads to compliance degradation over time as websites evolve and new content is added.

DIY Remediation: Attempting to address complex accessibility requirements without specialized expertise often results in incomplete solutions that don’t fully serve users with disabilities.

Delay Tactics: Waiting for demand letters or lawsuit threats before addressing accessibility creates unnecessary legal and financial risk while missing business opportunities.

Seven Strategic Benefits of Cannabis Digital Accessibility

1. Community Goodwill and Brand Reputation

Cannabis and CBD brands that demonstrate genuine commitment to accessibility build strong relationships within disability communities. These communities are highly connected and vocal about businesses that provide inclusive experiences, creating powerful word-of-mouth marketing opportunities.

2. Market Expansion

Twenty-five percent of the population represents significant untapped market potential. Disability communities are experienced advocates who quickly recognize and support businesses that welcome their participation.

3. Competitive Differentiation

While larger corporations often have dedicated accessibility teams, most cannabis businesses don’t prioritize digital inclusion. Small and medium-sized cannabis companies that embrace accessibility can differentiate themselves while accessing new customer segments.

4. Legal Protection

Proactive accessibility implementation provides the strongest defense against litigation while demonstrating good faith compliance efforts.

5. Universal Benefits

Accessibility improvements benefit everyone, not just people with disabilities. Clear navigation, readable fonts, and intuitive interfaces improve user experience for all customers, including:

• People recovering from injuries
• Elderly customers with changing abilities
• Baby Boomers, a significant cannabis market segment
• Anyone using mobile devices in challenging environments

6. Customer Loyalty

People with disabilities demonstrate exceptional loyalty to brands that provide inclusive experiences. They also actively share recommendations within their communities, amplifying positive brand awareness.

7. Operational Excellence

Accessibility requirements often align with broader user experience best practices, resulting in better-performing websites that serve all users more effectively.

Implementation Strategy for Cannabis Businesses

Creating accessible digital experiences requires more than technical compliance – it demands ongoing commitment to inclusive design and user experience. Successful cannabis businesses approach accessibility as a core operational capability rather than a one-time project.

Assessment and Planning: Understanding current accessibility gaps provides a foundation for strategic improvement. This includes technical auditing, user experience evaluation, and business impact analysis.

Remediation and Enhancement: Addressing identified barriers while building accessibility into ongoing development processes ensures sustainable compliance.

Monitoring and Maintenance: Continuous oversight prevents regression while identifying opportunities for enhancement as standards evolve and new technologies emerge.

Training and Culture: Building internal accessibility knowledge ensures that teams can maintain compliance independently while making informed design decisions.

The Future of Cannabis Digital Accessibility

The 2022 wave of cannabis accessibility lawsuits represents a turning point for the industry. Forward-thinking businesses are recognizing that accessibility isn’t just about legal compliance – it’s about market leadership, customer service excellence, and operational efficiency.

Cannabis companies that embrace accessibility now position themselves advantageously as enforcement increases and consumer expectations evolve. The disability community remembers which businesses welcomed them early and which required legal pressure to provide basic access.

Taking Action: Beyond Compliance to Excellence

Making cannabis digital assets accessible requires expertise, ongoing attention, and strategic implementation. The goal isn’t just avoiding lawsuits – it’s creating digital experiences that serve all customers effectively while building sustainable competitive advantages.

The cannabis industry has already demonstrated leadership in challenging regulatory environments and serving diverse customer needs. Extending this expertise to digital accessibility represents a natural evolution that benefits businesses, customers, and communities alike.

Rather than viewing accessibility as a burden or compliance checkbox, successful cannabis businesses recognize it as an opportunity to demonstrate values, expand markets, and build lasting customer relationships. In an industry built on providing access to healing and wellness, ensuring digital inclusion isn’t just good business – it’s the right approach.

The question isn’t whether cannabis businesses need accessible digital experiences – it’s whether they’ll lead this transformation or wait for legal pressure to force change. Early adopters gain competitive advantages while building stronger, more inclusive businesses that serve all customers effectively.