Court orders creator of failed Kickstarter to pay over $54K in fines
There are few guarantees when it comes to backing a Kickstarter campaign, but potential donors can rest a little easier now that a Washington court has decided to fine the creator of a botched campaign for $54,851 in civil penalties and restitution. Not only does this serve as a warning to other campaign creators about the dangers of failing to live up to their commitments, but it could also set a legal precedent for future cases involving crowdfunding.
This particular campaign was for Asylum Playing Cards, which was supposed to be a thematic pack of 56 playing cards, including 52 standard cards, two jokers, a double-back card, and a “Special ‘X’ Card.” The campaign raised over $25,000 from 810 backers, but the campaign’s creator never delivered any of the products promised to backers, nor did he refund their money. The Washington court notes that the campaign creator, Edward J. Polchlopek III (also known as Ed Nash) and his company, Altius Management, have not even communicated with backers of the campaign since July 2013.
The Washington court filed a lawsuit under the state’s Consumer Protection Act in April 2014, but it only reached its decision to fine Polchlopek and Altius Management in July 2015.
“Washington state will not tolerate crowdfunding theft,” Washington Attorney General Bob Ferguson said in a statement. “If you accept money from consumers, and don’t follow through on your obligations, my office will hold you accountable.”
Ferguson’s statement pointed to Kickstarter’s terms of use, which “make clear that companies are legally obligated to fulfill the promised rewards or provide consumer refunds.”
The specific rule to which Ferguson is referring states: “When a project is successfully funded, the creator must complete the project and fulfill each reward. Once a creator has done so, they’ve satisfied their obligation to their backers.”
While the Washington court has concluded its case against Polchlopek, this may not be the end of his legal troubles. The current fines include $668 in restitution for the 31 campaign backers that are residents of Washington, but Ferguson’s statement encourages affected backers from other states to “to file a complaint with their state attorney general to seek restitution.”
Image credit: Altius Management | Kickstarter
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