Kickstarter's New Rules: Creators Must Complete Projects, or Fess Up

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Crowdfunding campaigns can help turn creators' dreams into reality -- unless backers hand over the money, just to watch everything fall apart. Now Kickstarter is trying to codify the current swampy situation around projects canceled after creators have the cash in hand. Kickstarter's new policies mandate that creators complete their projects, or at least make their best effort to bring the project to the "best possible conclusion for backers." If creators don't make good on the promises made in their campaigns, they must explain what happened, return any unused funds, and could face potential legal action from backers. "This update reflects the best practices we’ve seen from our community to get the best possible outcomes from challenging situations," Kickstarter co-founder and CEO Yancey Strickler said in a blog post. The new terms are effective for all campaigns launched on or after October 19, and the announcement comes one day after science-fiction writer Neal Stephenson canceled a video game for which he raised more than $526,000.


--- Julianne Pepitone