Kickstarter Changes the Rules | NBC Bay Area
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Kickstarter Changes the Rules



    Crowdfunding startup Kickstarter updated its terms of service Friday to protect itself from lawsuits and encourage creators to keep an open dialogue with backers even if a project tanks.

    The terms change comes just after news that a new Federal Trade Commission rule could make online retailers "abide by a 30-day shipping requirement" or give customers a refund, according to TechCrunch.

    Amanda Palmer Funds New Album Through Kickstarter

    [BAY] Amanda Palmer Funds New Album Through Kickstarter
    Tech Now's Scott Budman tech and social networking with Amanda Palmer at a San Francisco nightclub, days before the release of her new album. (Published Wednesday, Sept. 26, 2012)

    Kickstarter denied any connection to the possible FTC rules.Instead, Kickstarter said it wanted to make its terms clear to both creators and funders alike: they are creating a legal agreement, not with Kickstarter.

    "HAPIfork" a New Tech Diet Tool

    [BAY] "HAPIfork" a New Tech Diet Tool
    Launched on Kickstarter this week, the HAPIfork is a smart eating utensil that tracks the speed at which you eat. Scott Budman reports. (Published Thursday, April 18, 2013)

    Kickstarter doesn't want any legal problems when a creator can't deliver a flying car or cat-powered boat, but it also wants to make it clear to the creators that they owe their backers communication when the project can't go on. This means creators will have to explain what happened to backers, document what went wrong and how the funds were used or how they will be used. The startup also will pressure them to be "honest" and not misrepresent themselves or their projects.
     The new terms will go into effect Oct. 19.