First ever suit against a Kickstarter company

By Polar_Bear
In News
May 2nd, 2014
5 Comments
556 Views

GeekWire is reporting that the Washington State Attorney General has filed suit against a company that ran a Kickstarter campaign but has failed to deliver on their product or return any of the money.

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Source

From the report:

If you raise money via Kickstarter and don’t deliver products you promised backers, the government will come after you.

In what is the first consumer protection lawsuit involving crowdfunding, Washington State Attorney General Bob Ferguson today filed a suit against Ed Nash and his Nashville, Tenn.-based company, Altius Management.

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  • estrus

    Looking at his Facebook, he’s really a fan of Bruno Mars. That’s a glaring red flag right there.

  • Dr.Falkenhayn

    be aware Tony Reidy,be aware,you’re up next!

  • Ghool

    This is nothing but good news.
    Companies need to start being held accountable for taking customers money and running.

    There are far too many projects to list where they delays, BS, and outright lies should be burying the companies that run them, but aren’t. I can name a couple I’m getting tired of waiting for with little to no information and miscommunication, even though the projects have been delayed by a year or more.

  • -DE-

    When you participate in a kickstarter, you have to acknowledge that you may never get what you pay for. Just like when you go down to the market to buy groceries, the vendor has all the right to refuse to give you the products you paid for. Because that’s apparently how businesses ought to operate.

    I’m waiting for the day the US government finally clamps down on KS frauds, because I’ve already seen several where the creator grew bored of his project, never delivered, and never suffered any consequences. And nobody can do anything. Is this how law is supposed to work?

  • Haibane

    From the KS FAQ :

    “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.) 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.”