Finally, A Deadbeat Kickstarter Is Ordered By Law To Pay Up
The days of Kickstarter projects flaking on their promises and backers having their rewards mysteriously vanish may be coming to an end. A court in Washington state has sided with the backers of a Kickstarter campaign that did not deliver its rewards.
Back in September of 2012 a company called Altius Management launched a crowdfunding campaign for a new set of playing cards to be manufactured. The top-tier backers were to receive things like exclusive cards and decks signed by the artist, but after the campaign succeeded and closed on October 31st of that year, all details from the company went silent.
In April of last year a suit was filed against Edward J. Polchlopek III, owner of Altius Management, for restitution and criminal penalties. Only July 22 the courts in Washington sided against Ed, and he was ordered to pay $54,831 in damages against the backers he’d stiffed. The sum includes $668 in restitution for the 31 Washington state backers, $31,000 in civil penalties for 31 violations of the state’s Consumer Protection Act, and $23,183 to cover the legal fees of the case.
Up to this point, the problem of crowdfunding backers receiving nothing in exchange for their money has been handwaved. Crowdfunding sites have explained that investors frequently don’t receive returns on projects they fund, therefore, backers should expect a level of risk as well. The Washington state court has declared that no, the two scenarios are NOT the same, and that a promise is a promise in this case.
Now that a legal precedent has been set, the floodgates can finally open for justice to be done against other deadbeat companies, and the number of Kickstarters that do nothing but defraud people will be diminished. This in turn should make the process a bit more trustworthy, restoring confidence and, ultimately, benefiting all sides of the business.