United States:
Washington State Attorney General Addresses Consumer Protection In The Age Of Crowdfunding
03 September 2014
Arent Fox LLP
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A recent lawsuit in Washington State suggests that so-called
"crowdfunded" fundraising campaigns could be in for
greater scrutiny from consumer protection regulators.
"Crowdfunding" — in which projects are funded by
raising contributions from a large number of people — are
growing in popularity, driven in large part by the success of
online crowdfunding platforms such as Kickstarter, Indiegogo, and
RocketHub. These platforms allow just about anyone with an idea to
raise money from the general public, but at least some regulators
are starting to wonder whether the public is getting its
money's worth.
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