Crowdfunding website Kickstarter updated its terms of use to clarify what is at stake for campaign creators should they fail to deliver their end of the bargain, reports ZDNet.
Kickstarter CEO Yancey Strickler revealed the update in a blog post last Saturday.
"Over the past year, we've been working to make sure every part of the Kickstarter system is clear and straightforward. Today, we're updating our Terms of Use. The updated terms go into effect for all projects launched on or after October 19, 2014."
Strickler said the updates involved a "detailed outline of what's expected from everyone involved in a project," and for the most part, it is expected that "creators finish the work they planned, backers are happy, and nobody sweats the details."
There are exceptions, however, as Strickler acknowledged. "Sometimes problems come up, projects don't go according to plan, and people wind up in the dark about what's supposed to happen next. So we're spelling it out - what's expected from backers, what's expected from creators, and what needs to happen if a project runs into trouble."
The specific terms of use, published on Kickstarter's website, says that "when a project is successfully funded, the creator must complete the project and fulfill each reward. Once a creator has done so, they've satisfied their obligation to their backers."
"If a creator is unable to complete their project and fulfill rewards, they've failed to live up to the basic obligations of this agreement. To right this, they must make every reasonable effort to find another way of bringing the project to the best possible conclusion for backers," according to Kickstarter.
"If they're unable to satisfy the terms of this agreement, they may be subject to legal action by backers."
However, Harrison Weber of Venture Beat points out that Kickstarter still warns project creators and backers that the website "has no legal obligation to intervene" in case a funded project fails.
According to the new terms, "Anyone who backs a project is accepting the creator's offer, and forming that contract. Kickstarter is not a part of this contract."