FTC Settles With Alleged Kickstarter Scammer

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Posted 2 years ago

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4,497 projects Successfully Funded By Kickstarter In Last 3 MonthsThe Federal Trade Commission has issued a verdict in the very first case they have heard concerning Internet crowdfunding.

The case, which involved a board-game manufacturer who raised more than $120,000 via a Kickstarter campaign, was resolved by a settlement.

Investigators found that Erik Chevalier had begun the campaign to help produce a board game entitled “The Doom That Came To Atlantic City.”

The game was designed by two notable artists, a fact that Chevalier used to draw attention to his campaign which raked in donations of $75 or more from 1,246 people.

The campaign lasted six months, and instead of sending out copies of the game or even pewter figurines from the game as promised, Chevalier instead used the money to relocate to Portland, Oregon.

In July of 2013, he declared that the project was cancelled. The F.T.C. stepped in and began to take legal action against Mr. Chevalier.

The settlement ruled that he was liable to pay back $111,794 but suspended it because he had no ability to pay.

The board game was eventually made thanks to the contributions of another board-game manufacturing member of the Kickstarter community.

Jessica Rich of the F.T.C. commented on the matter by saying, “Consumers should able to trust their money will actually be spent on the project they funded.”

Christopher A. Smith

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