First, as the head of the National Crowdfunding Association and the World Crowdfund Federation for a year now, and having given about 40 speeches on the subject nationwide, I am rather accustomed to the nay-sayers. I understand that many simply find it hard to fathom that a horseless carriage could actually exist.... er, I mean that the general population might give small amounts of money to support something. So, while it is happening, indeed flourishing, right in front of them, they continue to wring their hands and stomp their feet as to whether or not such a contraption should ever begin.
I am not saying that I think my fellow counselor of the law and author of this article is decrying crowdfunding in its entirety. But, he certainly sounds to be coming from the room where those naysayers mingle to shield themselves from the reality outside, that life as they knew it is already changing at a meteoric rate.
First, by stating my opinions here, I am NOT giving legal advice but only a lay opinion. You should seek the counsel of your own attorneys and/or accountants on these matters.Just as with my above comments, the article has a hyperbolic ring to it. Though perhaps legally defensible, it appears written by someone not particularly familiar with the realities of what is happening in crowdfunding (on Kickstarter and the many other portals). For starters, the author fails to mention that after 2 1/2 years and over $5 BILLON dollars (yes, B B B B Billion) through reward-based crowdfunding and peer-to-peer lending, there hasn't been an instance of any of these sky-falling things becoming a legally punitive issue. Nevertheless, I appreciate him looking at the crowdfunding transaction in a proscribed, statutory manner, and his cautions deserve our attention. I will take each point and comment:
Yes, of course the producers must "accurately state the facts regarding their project on the website"! Not full Reg D disclosure requirements, mind you, but certainly the producers must be clear and accurate in their disclosures. I have seen no evidence that the Veronica Mars Crowdfunders have been anything other than transparent and accurate, thus the inclusion of this point seems unnecessary. Perhaps the author might also wish to remind us that the producers must "not threaten to wedgie anyone who doesn't contribute to their crowdfunding campaign".