** NEWS UPDATE ON CROWDFUNDING **

Last year one of the students blogged about crowdfunding, His discussion included identifying some of the risks when a project that is successfully funded for thousands of dollar, fails to make it to market.  As of last year Kickstarter changed its Terms of Use to require more substantiation from  project sponsors. Last week the state of Washington became the first state to require that the sponsors of a failed Kickstarter campaign pay fines and restitution. Washington initiated a civil action against Asylum Playing Cards for failure to deliver donor rewards in a timely manner and the court ultimately agreed that the donors were entitled to relief. The restitution was only for residents of Washington who donated to the Kickstarter, nonetheless, the decision has the potential to shake up project sponsors, who up until this point, faced no liability for failure to deliver the goods.

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~ by profjacobs on September 15, 2015.

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