FTC Fines Kickstarter Campaign Creator Who “Used Most of the Funds on Himself” (via Slate)
From the looks of things, it's mostly for show, i.e. "On Thursday the FTC released its findings in that case, explaining in a press release that Chevalier had “used most of the funds on himself.” The settlement imposes a $111,000 judgment against Chevalier—presumably the funds raised by the project, less Kickstarter’s own cut and its substantial processing fees—though the FTC notes that this penalty “will be suspended due to Chevalier’s inability to pay.”"
But I wonder if this was more exploratory and precedent setting for folding crowdfunding under their aegis more firmly?
Nothing for the backers, but "you pay the game you take your lumps" has always been my approach to getting involved with kickstarters.
From the looks of things, it's mostly for show, i.e. "On Thursday the FTC released its findings in that case, explaining in a press release that Chevalier had “used most of the funds on himself.” The settlement imposes a $111,000 judgment against Chevalier—presumably the funds raised by the project, less Kickstarter’s own cut and its substantial processing fees—though the FTC notes that this penalty “will be suspended due to Chevalier’s inability to pay.”"
But I wonder if this was more exploratory and precedent setting for folding crowdfunding under their aegis more firmly?
Nothing for the backers, but "you pay the game you take your lumps" has always been my approach to getting involved with kickstarters.