Crowdfunding campaigns that don’t deliver are part of the risk that comes with the platform. Indiegogo is looking to tackle that particular problem as it has updated its Terms of Use today which includes some…rather drastic consequences for people that do so.
In a blogpost publlished by the company itself, Indiegogo has outlined what the company will require from people who are looking to start their campaign on the website. For starters, aspiring campaign starters will now need to provide information about their residence that matches their project’s address upon ID verification in order to prove that they’re not impostors.
In addition to that, campaign owners will now be required to provide frequent updates about the project’s development. Indiegogo will not allow a campaign owner to launch another crowdfunding project if the owner has a project that is currently active.
As for campaign owners who couldn’t deliver despite having a successful crowdfunding campaign, Indiegogo has stated that it will “do everything in its power to recover funds for our backers, including contacting third-party collection agencies.” Curiously enough, no changes were made to the requirements needed for someone to launch their crowdfunding campaign, so launching a project on its own will remain comparitively easy when compared to the likes of Kickstarter.
