Cruz v. JKS Ventures, Inc.

Background

Allison Michele Cruz sued JKS Ventures, Inc., doing business as Incredible Pets, as a proposed class action. Cruz alleged that she is legally blind and uses screen-reading software, but could not fully access or use JKS Ventures’ website to purchase a dog toy. She identified barriers including missing alternative text, hidden webpage elements, incorrectly formatted lists, unannounced pop-ups, unclear labels, mouse-only functions, and broken links.

Cruz asserted claims under Title III of the Americans with Disabilities Act and the New York City Human Rights Law. She sought federal injunctive and declaratory relief and damages under the New York City law. The complaint also sought certification of classes under Federal Rule of Civil Procedure 23(b)(2) and Rule 23(b)(3).

The parties reached a settlement shortly after JKS Ventures’ counsel appeared. On January 3, 2024, the court dismissed the case with prejudice but without prejudice to any party’s right to seek reopening within 45 days. The parties then asked the court to approve their proposed consent decree.

Proposed Consent Decree

The proposed decree would require JKS Ventures not to deny people with disabilities the opportunity to participate in or benefit from goods and services provided through the website. It would also require JKS Ventures to use “Reasonable Efforts” to provide equal access and to avoid excluding or treating people differently because of a lack of auxiliary aids and services.

The decree defined “Reasonable Efforts” in a way that would not require efforts causing an undue burden, a fundamental alteration, or a loss of website-related revenue or traffic. It required JKS Ventures, within 24 months of the decree’s effective date, to modify the website as needed to substantially conform to Web Content Accessibility Guidelines 2.0 or 2.1 Level A criteria, or other applicable guidelines, so that the website would be accessible to people with vision disabilities.

The decree’s enforcement procedures would require notice and at least 30 days to cure an alleged violation before a party could seek enforcement. It also required a party challenging compliance to obtain support from an independent accessibility consultant before JKS Ventures could be found in breach.

Court’s Analysis

The court explained that a consent decree is both an agreement and a court order. When deciding whether to enter one, the court must examine at least its legality, the clarity of its terms and enforcement procedures, whether it resolves the claims in the complaint, and whether it resulted from improper collusion. When a proposed decree includes injunctive relief, the court must also consider whether the injunction serves the public interest. The court must determine that it is not merely acting as a rubber stamp for the parties’ agreement.

The court was concerned that the proposed decree appeared intended to protect JKS Ventures from similar future lawsuits while making putative class members intended beneficiaries rather than people bound by the decree. The court noted that the parties’ stated purpose was to provide protection against potential “copycat” lawsuits, while still allowing future plaintiffs to seek permission to intervene.

The court also identified reasons for further examining possible improper collusion. The settlement was reached very quickly, the record did not show adversarial negotiations or an exchange of information about the website’s specific problems and remediation plan, and the decree’s “Reasonable Efforts” and enforcement provisions could make challenges to compliance more difficult. The court stated that the negotiation history, information exchanged, compensation to Cruz and her lawyer, and Cruz’s involvement in the negotiations could be relevant.

Disposition

The court declined to approve the proposed consent decree on the present record. It ordered an in-person hearing for March 22, 2024, at 10:00 a.m. to consider whether the decree is fair and reasonable, free from improper collusion, and in the public interest. The court required supporting papers to be filed by March 15, 2024. This opinion did not decide whether JKS Ventures violated the Americans with Disabilities Act or the New York City Human Rights Law, and it did not finally approve or reject the proposed decree.