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COURT ORDERS FINES, PAYMENTS IN KICKSTARTER CASE  [RSS] Share on facebook Share on Twitter Submit to Reddit
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Made in gb
[DCM]
Et In Arcadia Ego





Canterbury

apologies if this is covered elsewhere....


http://icv2.com/articles/news/view/32334/court-orders-fines-payments-kickstarter-case


A Seattle court has ordered Altius Management, the creator of the Asylum Playing Cards Kickstarter, and co-defendant Edward J. Polchlopek (AKA Ed Nash) to pay over $54,000 in restitution, penalties, and costs in a case brought by the Attorney General of Washington last year (see "Washington AG Charges Kickstarter Fraud"). The defendants did not appear and judgment was by default, with no attorney for the defense listed on the court order.

Even as the court was publishing its order late last month, backers were posting in the project’s comment section that they were beginning to receive the promised playing cards.

The suit was filed under the state’s Consumer Protection Act on behalf of backers in the state of Washington who did not receive the products promised in the Kickstarter. The company stopped communicating with backers in 2013.

There were 31 Washington backers, who were awarded $668 in restitution for their contributions to the project. The state was awarded $31,000 in penalties ($1,000 per backer), and $23,183 for the costs and fees of the case.

The court also enjoined the defendants against running crowdfunding campaigns, participating in misrepresentations related to crowdfunding or online commerce, or violating provisions of the state’s Consumer Protection Act.

This was the first case of its kind (crowdfunding failure) in the U.S.

Meanwhile, on July 24, Adam Green posted on the Kickstarter project, "Weird I just received a package from Ed Nash containing my reward, not that I care anymore." His post was followed by similar posts by others over the following weeks from locations across the U.S. and around the world. While there are still some posts from as recently as a few days ago from backers who had not yet received their cards, it appears that an effort is being made to complete the shipping of the promised goods to the Kickstarter backers.

Where does that leave the court order? It was dated July 22, and presumably will remain in force even if all Washington backers receive their promised goods. But whether the money is collected may be another matter. Regardless, the court case is an important precedent, and it may be that the project’s creators’ shipment of the promised goods is another kind of precedent—one that shows it may take a long time and government help before some projects are shipped.



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Made in gb
Longtime Dakkanaut




Nottingham, UK

Interesting. Now there's a precedent, PB better pull their fingers out, no?

 
   
Made in us
Nihilistic Necron Lord






On the one hand, good deal that companies that don't deliver can be held responsible. On the other, I find it off that more money went to the state than to the backers.

 
   
Made in gb
Fixture of Dakka






Dorset, Southern England

 AduroT wrote:
On the one hand, good deal that companies that don't deliver can be held responsible. On the other, I find it off that more money went to the state than to the backers.

That's the way it goes. The court gets a cut for expenses, etc.. Besides, I think Kickstarter falls somewhere around donations more than purchases. If these were being purchased and delivery never occured, you would be entitled to a full refund; however, the rewards are more a "bonus" as it were, rather than a purchase. That's my understanding, anyway.

BlapBlapBlap: bringing idiocy and mischief where it should never set foot since 2011.

BlapBlapBlap wrote:What sort of idiot quotes themselves in their sigs? Who could possibly be that arrogant?
 
   
Made in pr
Fixture of Dakka






winterdyne wrote:
Interesting. Now there's a precedent, PB better pull their fingers out, no?


Oh yes....


I knew this was going to happen sooner or later.

Its not a donation at the point that you think it is. Other wise you could write all of it off in taxes as charity/ saving the whales.


Hay, wait a minute!!!!!

Can I write off all of my KS spending as charity?



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Made in gb
Fixture of Dakka






Dorset, Southern England

 Grot 6 wrote:
winterdyne wrote:
Interesting. Now there's a precedent, PB better pull their fingers out, no?


Oh yes....


I knew this was going to happen sooner or later.

Its not a donation at the point that you think it is. Other wise you could write all of it off in taxes as charity/ saving the whales.


Hay, wait a minute!!!!!

Can I write off all of my KS spending as charity?

I didn't say donation literally, just that pledges, I think, fall more in that category.

However, I could be entirely wrong. I usually am.

BlapBlapBlap: bringing idiocy and mischief where it should never set foot since 2011.

BlapBlapBlap wrote:What sort of idiot quotes themselves in their sigs? Who could possibly be that arrogant?
 
   
Made in us
Inspiring SDF-1 Bridge Officer





Mississippi

 AduroT wrote:
On the one hand, good deal that companies that don't deliver can be held responsible. On the other, I find it off that more money went to the state than to the backers.


Eh, I don't see it much different that the state leveling a fine akin to littering or speeding (above and beyond court costs).

Also, I think PB needs to stand up and pay attention to their backers. Things are, so to speak, already underway.

It never ends well 
   
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CoALabaer wrote:
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Made in us
Stormblade



SpaceCoast

 AduroT wrote:
On the one hand, good deal that companies that don't deliver can be held responsible. On the other, I find it off that more money went to the state than to the backers.


I'd be surprised if the state ever sees any of the money. I'm not defending Altius, however you have a state AG, using a state law in a state court trying to regulate interstate commerce. How do they think that order will be enforced ? I'd love to hear some of our legal experts opinions.
   
Made in au
Incorporating Wet-Blending




Sydney

Can you edit the title with the name of the KS, I almost had a heart attack
   
Made in au
Incorporating Wet-Blending






Australia

 BlapBlapBlap wrote:
I didn't say donation literally, just that pledges, I think, fall more in that category.

However, I could be entirely wrong. I usually am.

You are wrong. If you are putting a price tag on a product to secure pledges, you are subject to consumer protection law. If somebody tries to get around that with the "donation" bait-and-switch, then that just proves they're the sort of person those consumer protection laws are written to stop.

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-C.S. Lewis 
   
 
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