My first experience of crowd funding came in 2012 when a group of heroes from a gaming forum I moderated paid for me to attend Gamescom in Germany. At the time I was feeling pretty low, I had just been made redundant and I was having one of those break ups that lasts for years because despite it being terrible you keep trying to get back together.
Having the support of individuals who didn’t really know me was a wonderful and curious thing. For a start the support of strangers made me feel worthwhile and like the project really mattered in a way that I hadn’t originally considered. It gave me personally a sense of value but also brought with it a feeling of obligation – these people had, between them, donated almost €100. Many of those donating were still in education and their contribution must have been hard felt. For their troubles, I wrote thousands of words, took hundreds of pictures and several mortifying videos of myself that I would gladly burn.
Crowdfunding like Go Fund Me, Kickstarter or Steam’s Greenlight have now become a legitimate way of funding projects as wide ranging as an artist selling real-estate on her body for tattoos to the record breaking campaign to bring Shenmue 3 to the world. By offering different tiers of rewards proposers encourage backers to part with their cash.
But what happens when proposers fail to meet their promises? Until now the situation had been untested but in a landmark case in America, a court has ordered a Kickstarter-backed project to deliver. Altius Management promised backers of the Asylum card game that they would receive rewards ranging from the basic deck of cards at $9 to higher contributions and signed original works of art all to be delivered by the end of 2012. When, in 2014, backers had not received their rewards despite the project smashing their target by over $10,000 a case was brought against the company by a backer in Washington.
Ultimately the courts decided that compensation should be awarded to the 31 Washington-based backers of $668 each. Altius Management has also been fined $1,000 and ordered to cover the court’s legal cost of $23,168.
While this verdict only extends to backers in Washington and backers in other places have been encouraged to bring their own cases where they are the results of this landmark case will undoubtedly have further reaching consequences. In the US as well as the UK consumers are protected by laws that aim to prevent fraudulent transactions and now, thankfully, it seems that these laws will also be extended to crowdfunding in the future.
Thanks to Polygon for the figures.

