While we all know that backing a company/project on Kickstarter has significant risk, The BrewBot campaign is somewhat unique given the size of each individual investment and International customer base, press articles, and subsequent $1.5M investment in 2014.
It is one thing to submit $10-20 or even $200 for a "trinket", game, book, record, etc., that may or may not deliver but there is quite a different level of expectation when one invests several thousand. Hopefully, this has not posed a financial hardship to any of the backers, yet I am sure that every one of us backed this project with the expectation of receiving something of value. Certainly those that placed orders directly with BrewBot post-Kickstarter have even a stronger expectation of delivery.
So it is time to start looking at our situation from a broader legal framework. Being based in the US, I'll start here and expand Internationally as my research grows.
One obvious starting point for US based people is Mail and Wire Fraud.
There are three elements to mail and wire fraud:
- Intent;
- A "scheme or artifice to defraud" or the obtaining of property by fraud; and,
- A mail or wire communication.
To be fraudulent, a misrepresentation must be material.
Perhaps a bit of a hurdle to prove, but after three years we certainly have a long runway to collect evidence.
Does this cover International transactions? Fortunately yes, "wire fraud has been expanded by Congress to include foreign wire communication or interstate connections via (e.g.) an e-mail server or telephone switch or radio communication."
What are your thoughts? Is there sufficient evidence of fraud?
I wouldn't imagine raising large amounts of money and the non-delivery of machines was intentional from the outset, but since the opening of a very successful bar (so we are lead to believe) and countless production issues it seems the initial business plan - of a beer making machine - has well and truly been placed on the back burner.
ReplyDeleteAgreed, a £10, £20 or even £100 punt is ok, £2000 is quite different.
Anyone looking at the website Brewbot.io is greeted with B.S., can that be classed as fraud?
A team of 16 members and offers such as....
Under the hood
Brewbot is a mix of both hardware and software, providing a complete brewing setup out of the box. Using your WiFi network to connect to the internet, Brewbot becomes connected to your smartphone and the rest of the community.
Brewbot Core is the embedded brain that communicates with both the app and an array of sensors. Core talks to your smartphone, providing you with the information you need, when you need it. Brewing just got a whole lot smarter.
Say hello to your new favourite appliance. — Wired
Specifications *
Dimensions: 1193mm x 1230mm x 480mm
Voltage Input: 220/230v
Power Rating: 3KW
Wi-Fi: 802.11 b/g/n
Output Volume: 25 litres
Brew time: 5-8 hours
Includes
Brewbot
Ingredients for your first brew
Full brewing kit and cleaning kit
Digital scales
Manual
Brewbot iOS app
With recipes from breweries like; Russian River, Stone Brewing, Brooklyn Brewery and many more.
* Specifications can change from now until your unit is ready to ship but we’ll notify you of any changes.
Customise your Brewbot
Create your very own Brewbot. Our customisation options are basically endless. Whether it’s a simple engraving of your company’s logo or a Victorian copper-plated steampunk brewing machine, we’re happy to help you out. Register your interest below and we'll be in touch.
Thanks for all this information, this has been picked up on reddit:
ReplyDeletehttps://www.reddit.com/r/northernireland/comments/68u7qo/brewbot_answers_is_it_fraud/
Maybe this is the route we need to go, varies by state/country. But if they get enough complaints there may be action taken.
ReplyDeletehttps://oag.ca.gov/contact/consumer-complaint-against-business-or-company