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Volume XII, Number 272

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California Appellate Court Rules That Purely Digital Retail Businesses Are Not Covered Under the Unruh Civil Rights Act

On August 1, 2022, the Court of Appeal of the State of California, in Martinez v. Cot’n Wash, Inc., resolved two outstanding issues in the website accessibility field in a way that limits the reach of the Unruh Civil Rights Act (Unruh Act) as part of a growing resistance in the judiciary to an onslaught of website accessibility claims.

First, the court held that when a court considers whether a party has violated section 51(f) of the Unruh Act, which provides that a violation of the Americans with Disabilities Act (ADA) constitutes a violation of the Unruh Act, websites of a purely digital business with no physical “place” open to the public are not covered.

Second, the court held that the plaintiff had failed to allege the “intentional discrimination” required for claims under section 51(b) of the Unruh Act solely by virtue of the failure to address barriers on the website alleged in a pre-litigation demand letter.

The decision upholds the lower court’s dismissal of the claims in the first amended complaint, which alleged that Cot’n Wash violated the Unruh Act because its website was inaccessible to blind or visually impaired persons and that Cot’n Wash failed to take adequate action to make the website accessible after being notified by the plaintiff’s demand letter of the alleged barriers on the website.

In a unanimous decision of a three-judge panel, the court sided with the majority of federal appellate courts that have reviewed the issue, holding that Cot’n Wash—a purely digital retail business that does not offer goods or services at any physical location—and its website did not constitute a place of public accommodation under the ADA and thus could not support a section 51(f) Unruh Act claim based on incorporating a violation of the ADA as a violation of the Unruh Act. In so doing, the court rejected a minority view held by some federal district courts that a purely digital retail business is covered by the ADA in the same way that a bricks-and-mortar retailer would be.

The three-judge panel also unanimously held that a plaintiff alleging a claim under section 51(b) of the Unruh Act must establish that the defendant intentionally discriminated against the plaintiff because of his or her disability. The court rejected the plaintiff’s argument that Cot’n Wash had intentionally discriminated against him when it failed to take corrective action after receiving correspondence from his counsel documenting the alleged barriers on the website. The court further acknowledged that while “disparate impact” caused by an inaccessible website may be “probative” of intentional discrimination, such disparate impact, even when combined with a failure to take corrective action when notified, does not alone establish the requisite intent.

Key Takeaways

The court’s first holding should put an end to Section 51(f) Unruh Act claims that are leveled against purely online businesses. But this ruling will not prove helpful to the many businesses whose websites have some “nexus” or connection to physical locations open to the general public.

There are many “hybrid” businesses—with both physical, customer-facing locations and other nonpublic activities—for which this ruling may prove helpful. For example, the requirement of a nexus or connection to a physical location may protect businesses (or portions of businesses) whose websites have no connection to physical locations—such as publicly traded companies that have been inundated with claims of late that their websites’ investor pages are inaccessible to the blind. Because those websites, or the portions of the websites devoted to investor relations, have no connection to physical locations open to the public, this ruling may prove helpful in defeating those claims.

The court’s ruling on the “intentional discrimination” requirement for claims under section 51(b) of the Unruh Act may likewise be helpful, as it clarifies that a business’s inaction in response to a claim of alleged barriers to access, even when combined with disparate impact on a protected group, is not enough to establish intent. The court was careful to note, however, that such a failure to take action could nevertheless be “probative” of intentional discrimination, assuming a party could overcome this high pleading standard.

So, while this decision continues the trend of courts pushing back on website accessibility claims, businesses may want to consider whether making websites more accessible should be part of their business planning. As more web developers grow knowledgeable about how to make websites accessible to visually impaired individuals who use screen-reading software and to hearing-impaired users attempting to access audio files, it may make sense for businesses launching or relaunching websites to give consideration to making their websites accessible to persons with disabilities.

© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume XII, Number 224
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About this Author

David Raizman, Disability RIghts Practice, Attorney, Ogletree Deakins Law Firm
Shareholder

David Raizman is nationally known for his disability rights practice, specifically for his work under Title III of the Americans with Disabilities Act. In 2012, he was recognized by the Los Angeles Daily Journal as one of the top labor and employment attorneys in California and has been recognized multiple times as a Southern California Super Lawyer.

David works extensively with hotels, sports franchises, stadium and arena owners and operators, amusement parks, theaters, retailers, municipalities and many other clients with operations open to the public to help...

213-438-1285
Nicholas Marfori Corporate Litigation ADA Attorney Ogletree, Deakins, Nash, Smoak & Stewart Law Firm
Associate

Nicholas Marfori is an Associate in the Los Angeles office of Ogletree Deakins. His practice is focused on advising and defending retail stores, restaurants, hotels, and other places of public accommodations in matters involving disability access under Title III of the Americans with Disabilities Act (ADA) and the California Unruh Civil Rights Act. He has also represented and advised residential developments and property management companies on fair housing matters and construction-related issues.

Nicholas received his B.A. at the University of...

213-457-5865
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