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.
- 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.
Kickstarter updates terms: 'The creator must complete the project'
The popular crowdfunding site has added some serious new stipulations to its terms of service -- which are designed to ensure backers get what they back.