Feds take first action against a failed Kickstarter with $112K judgment

[Suburban_Guy]

Good, about time they cracked down on these frauds (just as bad as those gofundme nonsense)

Feds take first action against a failed Kickstarter with $112K judgment | Ars Technica

The Federal Trade Commission has taken its first-ever action over a crowdfunding project, finding that its creator used "deceptive tactics" by raising more than $122,000 to create a board game—and then spending the money on things like rent, moving to Oregon, and personal equipment.

Erik Chevalier, who has settled the case, raised the money from 1,246 backers. He promised he would produce a board game called The Doom That Came to Atlantic City, and the campaign came to a successful conclusion on June 6, 2012. According to the complaint (PDF), 85 percent of the backers had pledged $75 or more, the level required to get the pewter miniatures promised backers of the project.

[ocnjgirl]

Originally Posted by Suburban_Guy

Good, about time they cracked down on these frauds (just as bad as those gofundme nonsense)

Feds take first action against a failed Kickstarter with $112K judgment | Ars Technica

Why are you lumping all of them together? I've bought a few things that started on Kickstarter and are now successful and sold in other stores (my favorite of them is my Kitchen Safe, of which I own 2)

There are also some cool rehab innovations, things like prosthetics, that are coming from sources like Kickstarter, a place where individuals with great ideas can bring them to fruition. Of course it's going to be buyer beware should you choose to invest, but to say they're all frauds is much too broad of a brush.

To me it's an online version of Shark Tank, except they are pitching their idea to regular folks instead of millionaires.

[thedwightguy]

I just took my first look at Kickstarter and get the general impression that way too many of the sites I'm seeing are not well thought out at all. How did they arrive at what they "need" in capital? WHERE are they located? Since when do you need a "permit" to drill a water well? (I can't tell from the site where their "organic" farm is going to be, nor can I communicate without being a "sponsor".

Methinks a vetting form would do Kickstarter good, a minimum amount of disclosure information required for each site. It's too hard to figure out what these kids are up to half the time, and the other half the unit is already really out there in the real world: they're just restamping it with their logo and claiming it's new.

After three years the "dry age beef" unit doesn't even have a photo up of what it's supposed to look like. They keep stringing people along and selling them chopping boards. Right. Perhaps a starred rating system would be nice.

[Oldhag1]

Now, if they would just go after the shysters using GoFundMe.

[RiotAct41]

Good.