This is why Kickstarter is doomed in its current incarnation. With no sense of accountability, backers will be abused more and more by individuals or groups just looking to spend other peoples' money. Worse, fraud is going to ramp up because it always follows the money and Kickstarter is taking a hands-off approach that will fail.
Kickstarter should promote the trust of backers in a similar fashion to the way that Ebay promotes the trust of purchasers. Kickstarter should be seeking to increase accountability in any way that it can through reputation systems, project completion metrics, background checks, and full transparency of the entire process.
Besides the sad response to the Arduino founder in this article, I would point to the backer-only forums and updates on each Kickstarter project. How are potential donors to see what's going on in that project?
>Kickstarter should promote the trust of backers in a similar fashion to the way that Ebay promotes the trust of purchasers.
I would certainly hope not. Get screwed by a buyer? Tough luck, deal with it, cost of doing business. Ebay is the most merchant-hostile pack of morons I've ever had the displeasure of doing business with, on par with PayPal.
Also, if they go that route (even not into full idiot mode territory like Ebay), their reason for existing will go away - make it more onerous for small startups and individuals to operate while making way for the larger, more organized companies, and Kickstarter as we know it dies.
I'm not ready to sacrifice kickstarter on the legislation altar, especially considering how many amazing things have been launched from it and how many more are still in the works. I'd say the occasional trademark kerfluffle is well worth what KS provides.
“We think the most disruptive aspect [of Kickstarter] is the removal of the investment component,” Chen said. “People are supporting projects because they want to see them happen. It’s so different than giving money because you want to make a profit.”
It is DEFINITELY (almost DEFINITELY, IANAL, nor am I a broker) against current securities laws. Securities laws and regulations make it very onerous to sell shares to the public (i.e. to become a "publicly traded company").
Kickstarter should promote the trust of backers in a similar fashion to the way that Ebay promotes the trust of purchasers. Kickstarter should be seeking to increase accountability in any way that it can through reputation systems, project completion metrics, background checks, and full transparency of the entire process.
Besides the sad response to the Arduino founder in this article, I would point to the backer-only forums and updates on each Kickstarter project. How are potential donors to see what's going on in that project?