Must Crowd Funding Be Politically Neutral?

Kickstarter has found itself in the middle of a controversy as to whether it is engaged in “censorship” with respect to a couple of pro-life documentaries.

One, about Kermit Gosnell, the convicted Philadelphia abortionist, claimed that Kickstarter asked for several changes to the money plea that forced the filmmakers to move to Indiegogo, where, apparently they were not bothered. Kickstarter says that they just suggested changes on the Gosnell campaign to make it less graphic (e.g.,  delete the reference to “1,000s of babies stabbed to death”).

Somehow this situation has now made it to Fox News.

The other film, Stolen Moments, was rejected by Kickstarter for offering  “self help” which does not comply with the website’s terms of service.

Historically, the SEC has not been a “merit” regulator (ie, it did not regulate based on the content of the offering; although some states do). The SEC’s proposed rules presently do not allow “curation” per se.

Query: Will the federal Crowd Fund Act require political agnosticism from all funding portals?

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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