Earlier this week, global crowdfunding platform Indiegogo announced it has recently updated its Terms of Use and added it plans to go after campaign organizers who fail to deliver products to backers.
The funding portal revealed:
“We often get asked about the feasibility of projects and, while we may not review every project, we will work with the campaign owner directly if we receive questions or concerns. We respect quality, honesty and accountability. That being said, we will not tolerate abuse of our platform. If an entrepreneur breaches our Terms of Use or doesn’t fulfill their obligations to backers, we will take appropriate action against the campaign. We will do everything in our power to recover funds for our backers, including contacting third-party collections agencies. In some cases, if the situation is not egregious, we will reach out to the campaign owners to try to work with them before taking definitive action. Overall, we pledge to do what is fair.”
Along with using third-party collections services, Indiegogo also stated that campaign organizers who fail to adequately fulfill their campaign’s obligations (i.e. presents what backers put funds towards) might result in the platform removing the initiative from its website and seeking reimbursement of the funds raised. Indiegogo went on to reveal:
“In addition to these routine reviews, our team also investigates real-time feedback and concerns from our community and partners. We hold our campaign owners accountable, from identity verification to monitoring communication and transparency with backers.”
To see the newly updated Terms of Use, click here.
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