FTC’s first Crowdfunding Scammers Case is a Big Deal, sort of

fed trade

Now get this: So this week, the Federal Trade Commission entered a settlement on its first case involving scammers using crowdfunding sites like Kickstarter and GoFundMe to raise money without following through on their promises..

It settled charges against man who raised $122,000 to produce a board game, but then canceled the project and used the money to pay his rent and move.

The agency is looking for this case to be a warning to other online scammers to back off!

Only part that sucks is the judgment ordering Erik Chevalier to pay donors back their money has been suspended because he doesn’t have any.

So for now, Chevalier is just ordered to not lie in future crowdfunding campaigns.


h/t PBS