Washington state files the first crowdfunding related lawsuit against a playing card maker that didn’t deliver.
In the crowdfunding world there are two big impediments to complete consumer confidence in the ecosystem: ensuring that the people behind the team have the capability to deliver, and ensuring that the people will actually deliver. The former of the two concerns can be handled by a startup community like HWTrek, which pairs experts in the field with startup projects. Now, a lawsuit in the State of Washington looks to set a precedent to address the second concern.
Late last week Washington State Attorney General Bob Ferguson filed a suit against Nashville-based Altius Management and its proprietor Ed Nash. According to court documents, in October 2012 Nash raised $25,146 from 810 backers — 31 from Washington — to develop and deliver a playing card game called Asylum. The Kickstarter went past its goal of $15,000, obliging Nash to deliver on his promises or issue a refund.
“Consumers need to be aware that crowdfunding is not without risk. This lawsuit sends a clear message to people seeking the public’s money: Washington state will not tolerate crowdfunding theft,” Furguson said in a statement. “The Attorney General’s Office will hold those accountable who don’t play by the rules.”
The Kickstarter Terms of Service makes it clear that any creator is legally obliged to deliver:
Is a creator legally obligated to fulfill the promises of their project?
Yes. Kickstarter’s Terms of Use require creators to fulfill all rewards of their project or refund any backer whose reward they do not or cannot fulfill. This information can serve as a basis for legal recourse if a creator doesn’t fulfill their promises. We hope that backers will consider using this provision only in cases where they feel that a creator has not made a good faith effort to complete the project and fulfill.
But, at the same time, by its own admission Kickstarter does not actively police whether products are delivered on time or according to specifications.
For its part, Kickstarter released the following statement first published by Geekwire: “Tens of thousands of incredible projects have been brought to life through Kickstarter. We want every backer to have an amazing experience, and we’re frustrated when they don’t. We hope this process brings resolution and clarity to the backers of this project.”
Nash has not yet filed a defence.
Via: *Geekwire
Below are the full court filings:
For its part, Kickstarter released the following statement first published by Geekwire: “Tens of thousands of incredible projects have been brought to life through Kickstarter. We want every backer to have an amazing experience, and we’re frustrated when they don’t. We hope this process brings resolution and clarity to the backers of this project.”
Nash has not yet filed a defence.
Via: *Geekwire
Below are the full court filings:
State of Washington vs. Asylum 5/1/2014 by Taylor Soper
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