"Change in Kickstarter ToS" Topic

For those of you interested on Oct 19th, 2014 Kickstarter will change its ToS. What is included in this update is that the starter of the Kickstarter campaign will now be held responsible for delivering the product or at minimum making it so that some sort of reasonable compromise or substance is reached. Included in this are:

If a creator is unable to complete their project and fulfill rewards, they've failed to live up to the basic obligations of this agreement. To right this, they must make every reasonable effort to find another way of bringing the project to the best possible conclusion for backers. A creator in this position has only remedied the situation and met their obligations to backers if:
付hey post an update that explains what work has been done, how funds were used, and what prevents them from finishing the project as planned;
付hey work diligently and in good faith to bring the project to the best possible conclusion in a timeframe that's communicated to backers;
付hey're able to demonstrate that they've used funds appropriately and made every reasonable effort to complete the project as promised;
付hey've been honest, and have made no material misrepresentations in their communication to backers; and
付hey offer to return any remaining funds to backers who have not received their reward (in proportion to the amounts pledged), or else explain how those funds will be used to complete the project in some alternate form.
謬he creator is solely responsible for fulfilling the promises made in their project. If they're unable to satisfy the terms of this agreement, they may be subject to legal action by backers.

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I'm actually interest in this aspect because now people can't just take the money and run but must make some sort of reasonable advancement to explain themselves to their backers or face the courts. What is your take on it?

KS is probably 'covering' their TUSHIES…..as well as make it HARDER for the 'grab the money and run' types…..

Personally, I've not been 'taken'…(yet) on KS, but there are at least TWO projects I'm backing that are 3 months to a YEAR 'behind' with no real 'set date' as to when they WILL be fulfilled….other than, 'we're still working/dedicated etc'….

On the other tentacle, I've had a couple of KS folks that have more than met expectations/exceeded what was promised…(Bombshell Babes/Counterblast, etc)….and HOPEFULLY, shortly….Mantic with Mars Attacks!!!!(ack, ack, ack!)…

It sounds good. But what are the consequences if a creator is unable to complete and fulfill, and doesn't meet Kickstarter's standard of diligence and good faith (whatever that is, exactly)? Weren't they always subject to possible legal action by backers, who were willing and able to pony up for a lawyer?

This does NOTHING to ensure that backers get what they are backing. That last bullet point says it all.

I agree with Dynaman8789, this doesn't sound like it changes anything.

The initial kickstarter wording made it look like an investmetn with shares…so if the company went out of business then you lost your investment.
The more recent trend is using kickstarter as a pre-order system that helps get new product on the market.

I do not believe that this will stop the (very small minority) of people using this for a quick cash scam.

Right, this only reinforces what Kickstarter has been saying all along; that the project is a legal contract, but it's up to the backers to sue in the event of breach. This just clears up the wording, it doesn't change the substance of how KS works. It's still possible to set up a 'take the money and run' project, and it's still a breach of contract if you do so.

-Will

Weren't they always subject to possible legal action by backers, who were willing and able to pony up for a lawyer?

From my non-lawyer train of thought I would assume that those who start these sort of drives could easily evade, for most part, by saying that Kickstarter doesn't have any rules regarding the fulfilment of said drive forcing backers to sue both Kickstarter and the starters. This just make it clear that they would not and could not hide behind them.

If a project never sees the light of day Kickstarter still keeps your money … Amazon still keeps your money … the dude/dudette that ripped you off still keeps your money … it's the same as before.

It doesn't appear to have any more teeth than the policy they have going now.

It dosn't change anything – but it is written in a lot clearer language which is a good thing.

Though legally it is still a contract between backer and creator it does set out KickStarter's best practice which is also a good thing IMO (in that it informs both creators and backers, and can be used as part of the implied contract between backer and creator in a court case).

IANAL

here is the real change that should be made -- no new kickstarters for companies until all unresolved ones are fulfilled in full.

Slow down the flow of new projects some by companies that have not delivered in full to everyone.

here is the real change that should be made -- no new kickstarters for companies until all unresolved ones are fulfilled in full.

Not all creators are companies, BUT I think your idea still has merit.

-Will

I agree.

Right on, man.