Kickstarter campaign that never delivered ordered to pay in WA court

By Dirk Libbey
Jul 28, 2015
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  1. [parsehtml]<p><img src="" /></p> <p>Kickstarter has been a boon to numerous creators who&#39;ve had an idea but needed help with the finances in order to make it real. It has numerous famous success stories from small projects like the game <a href="">Cards Against Humanity</a> to big technical projects like the <a href="">Oculus Rift VR</a> headset. Not every story has been a success however and failure now has a price. The State of Washington has successfully sued a company who never provided the promised goods.</p> <p>The suit was brought<a href=""> last year</a> against a company called Altius Management who launched a project to create a deck of &quot;Asylum&quot; horror themed playing cards. The project eventually raised over $25,000 after only looking for $15,000. The cards were expected to be received by backers in December 2012, but they&#39;ve never been seen.</p> <p><a href="">The judgment</a> has finally come through and the court has ordered restitution be paid. Unfortunately, most of the 810 backers will never see a refund. Only those who live in Washington, about 31 people, are covered by the ruling.</p> <p>The lawsuit comes on the heels of the Federal Trade Commission taking action against another Kickstarter epic fail. In June, the <a href="">FTC found</a> that the man behind the crowdfunded board game <em>The Doom That Came To Atlantic City</em> used &quot;deceptive tactics&quot; by raising over $120,000 to create the game, and then spent the money on himself.</p> <p>The law always takes a while to figure out how to handle new ideas but it appears to be coming around to crowdfunding. While not every project that has trouble delivering is guilty of fraud it is clear that both the state and federal government will be watching, and that&#39;s a good thing.</p><p><a rel='alternate' href='' target='_blank'>Permalink to story.</a></p><p class='permalink'><a rel='alternate' href=''></a></p>[/parsehtml]
  2. stewi0001

    stewi0001 TS Evangelist Posts: 1,140   +481

    I hate to say it but, there should be some strict legal penalties on those failing to deliver. But then you run into how to find a balance since there could be issues like problems coming up with manufacturing or something to that affect.
  3. agb81

    agb81 TS Booster Posts: 77   +38

    Isn't kickstarter kinda like a donation? where the person asking for the money isn't contractually obligated to supply the goods.
  4. davislane1

    davislane1 TS Evangelist Posts: 3,372   +2,164

    They are contractually obligated to make an honest effort towards such ends. It's not unlike venture capital. Only, instead of investors cleaning you out if you bilk them, Kickstarter projects aren't directly subject to the sword of the backers.
    agb81 likes this.

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