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By his logic wouldn't Kickstarter be illegal? Many KS projects charge users before making a product (they use Amazon to process the payment, but the user's cred
by sciguy77 13y ago
By his logic wouldn't Kickstarter be illegal? Many KS projects charge users before making a product (they use Amazon to process the payment, but the user's credit card is still charged, which may very well be a Visa). I think this is a little silly.
- pavlov 13y agoIn Finland, crowdfunding concepts are actually illegal for that reason. If you're collecting money without selling something, you need a license from the authorities. To get a license, you need to be a registered charity. You can't just say "we'll probably use your donation to build something you might like and may send you one when it's ready".
- aclimatt 13y agoI mentioned a reply to that as a parent above. The difference is the way Kickstarter presents the projects and the terminology they use. They are not asking for pre-orders, they are asking for pledges, and have a very clear disclaimer in the top right about what that means. If the product page itself were to claim that they were pre-orders for a product that couldn't ship yet, then it as well could potentially be violating card agreements as well as the rule from the FTC.