Kickstarter updates terms: 'The creator must complete the project'

Right as a a high-profile campaign sputters out, Kickstarter has made some drastic changes to its terms of use which now stipulate that "the creator must complete the project and fulfill each reward." That doesn't mean projects won't fail anymore, of course. In a section headed "how projects work," Kickstarter now says that if a project does fail, its creator has "failed to live up to the basic obligations of this agreement" and those which do not meet its new terms of service, as detailed below, "may be subject to legal action by backers." The new terms say that a creator "has only remedied the situation and met their obligations to backers if":

- they post an update that explains what work has been done, how funds were used, and what prevents them from finishing the project as planned; - they work diligently and in good faith to bring the project to the best possible conclusion in a timeframe that’s communicated to backers; - they’re able to demonstrate that they’ve used funds appropriately and made every reasonable effort to complete the project as promised; - they’ve been honest, and have made no material misrepresentations in their communication to backers; and - they offer to return any remaining funds to backers who have not received their reward (in proportion to the amounts pledged), or else explain how those funds will be used to complete the project in some alternate form.

Earlier this year, the Washington State attorney general filed suit against a Kickstarter campaign creator that failed to deliver the goods. Again, you can see the updated terms on Kickstarter's site right here.