Washington State Files First Kickstarter-Related Consumer Fraud Suit

Washington State attorney general Bob Ferguson took the first steps on a brand new road when he filed a consumer fraud complaint against a Nashville, Tennessee company that failed to live up to promises it made during a Kickstarter campaign.

Kickstarter is a website where individuals or groups can announce new projects and solicit donations by promising certain perks or benefits to those who donate. “Crowdfunding” has become increasingly popular in recent years, with the recent Veronica Mars movie a prominent example of the concept’s potential.

However, Kickstarter and other crowdfunding existed in a kind of legal limbo until Washington’s suit against Altius Management, which raised more than $25,000 toward the creation of a new card game but has yet to deliver its promised benefits to donators.

The Chicago consumer fraud lawyers at Markoff Leinberger will follow this and other related cases closely.  Crowdfunding is an exciting example of the Internet’s innovative potential, but it also presents legal complications.

Kickstarter’s Terms of Service agreement has long made clear that solicitors are legally obligated to “fulfill all rewards of their project” or refund the backer’s money. However, this is the first time a government entity has filed a consumer fraud case involving crowdfunding.

If you live in the Chicago, Illinois and need a consumer fraud lawyer with experience and know-how, please contact Markoff Leinberger today for a free consultation.


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