FTC Investigating Kickstarter Campaign

Crowdfunding buyers of the iBackPack have recently received inquiries from the Federal Trade Commission about the Kickstarter and Indiegogo crowdfunding campaigns that raised over $700,000 but have, as yet, fundamentally failed to deliver a product to its consumers.

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While the FTC, like other government agencies, does not confirm or deny the existence of an investigation, Kickstarter noted to the reporter that they had been contacted last year by the FTC for a civil investigative demand for information.

The FTC has no issues with crowdfunding as a concept, but they are concerned that companies fulfill their promises.

In the meantime, iBackPack and its creator have virtually disappeared.

https://www.theverge.com/circuitbreaker/2018/8/29/17793720/ftc-ibackpack-investigation-indiegogo-kickstarter

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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: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, VC, Venture Capital and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink.

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