LXBN TV interviewed Venable partner Melissa Landau Steinman
on July 23, 2014 about crowdsourcing and the potential repercussions for the entrepreneurs who renege on their campaign promises. Crowdsourcing is a way for individuals to offer product or rewards in return for money donations to back projects like new product development, arts ventures or charitable undertakings.
In the interview, Steinman discussed a recent, high-profile crowdsourcing example involving a person raising over $50,000 to make potato salad. Citing a suit filed by the Washington attorney general, Steinman explained that individuals are subject to advertising laws if they fail to follow through with their promises to potential funders.