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It's a murky area the FTC has stepped into, with hopes of stopping unscrupulous project creators who take backers' money but don't hold up their end of the bargain.
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Not every Kickstarter project actually comes to life — and the U.S. Federal Trade Commission is showing it’s willing to wade into the murky crowdfunding waters to ensure customers aren’t getting duped. For the first time ever, the FTC is going after the founder of a Kickstarter campaign that failed to deliver on its promise, the Washington Post reports, implementing a fine and prohibiting any future misrepresentations.
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