Kickstarter, the popular crowd-funding website that gives businesses and entrepreneurs with new ideas the opportunity to raise funds for their venture, has updated its terms and conditions in order to give backers more protection.
Under the new terms of use, when a project’s funding goals have been met, the creators must complete the project and execute each reward. Only then will all of the obligations to backers be fully met. The revised conditions offer a legally binding agreement between the creators and the investors.
The latest conditions also establish a premium on clear communication. However, Kickstarter did note that sometimes unforeseen problems can still occur, including when it comes to shipping the final item or service.
Here are what the newest terms state:
“Throughout the process, creators owe their backers a high standard of effort, honest communication, and a dedication to bringing the project to life. At the same time, backers must understand that when they back a project, they’re helping to create something new — not ordering something that already exists. There may be changes or delays, and there’s a chance something could happen that prevents the creator from being able to finish the project as promised.”
According to Relaxnews, there was backlash on social media when the Pebble smartwatch Kickstarter campaign, which raised more than $10 million, experienced manufacturing discrepancies and failed to meet its shipping deadline. This enraged the earliest supporters, and experts say the entire Twitter storm could have been averted if the project managers were prompt and more communicative.
In the end, the updated TOU will likely provide Kickstarter enthusiasts and new backers the confidence to roll the dice and take a chance on an interesting concept and offer the funds that could certainly help the project come to fruition.
