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Kickstarter Accountability – Part II

Posted by Andrew at 5:28 PM on September 4, 2012

Kickstarter Logo Following on from my post last week about the role of patron at Kickstarter, NPR has run a piece called, “When A Kickstarter Campaign Fails, Does Anyone Get The Money Back?” This appears to have nudged Kickstarter into responding with a blog post, “Accountability on Kickstarter.”

I suggest that you read or listen to NPR’s show before reading Kickstarter’s reply but one of the key statements Kickstarter makes on this matter is below.

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 is what creators see before they launch.) We crafted these terms to create a legal requirement for creators to follow through on their projects, and to give backers a recourse if they don’t. 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.

That’s great, but does it change anything in reality? Are you really going to take out legal action to recover $100? I  think not. Kickstarter even points out that it feels that legal action is only appropriate if the creator has failed to make a good faith effort.

Consequently, I don’t think this changes anything. Kickstarter is still a great site, but go in with your eyes open as to the possible outcomes, especially the one where you lose all your cash.

Note that UK folk may have some protection if they paid for a failed project using a credit card under Section 75 of the Consumer Credit Act 1974 as it appears to cover purchases outside of the UK too. I am not a lawyer, etc.

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