Kickstarter and distance selling

Threepints

Hi Guys,

I think this is a complex issue but would be interested if any legal experts in consumer law may have an idea on the following.

I and many others backed a kickstarter project. The company are based in London and incorporated as a UK limited company with a UK address.

The money paid through kickstarter (no VAT included) was in dollars and the product under development is to be shipped from Taiwan (although this has only recently been disclosed), most EU backers thought that as a UK company goods would be shipped from the UK. Hence no duty payable. However with it being shipped direct to backers from Taiwan HMRC will obviously charge duty, adding approx £50 to the unit price paid.

A discussion has taken place that the product would come under the distance selling regulations and could be returned for a full refund including duties paid.

The company has issued the following response:


Technically we were and still am an US entity. That's why the campaign was in dollars. On top of that, all these laws have to go through Kickstarter before us. Pre order page says there may be custom duties and there's a terms and conditions page attached as well. Feel free to send us the legal stuff you find via email and we can cross check internally. This really feels like a legal audit but hey we don't mind, nothing to hide :P
Plus I'm not legal guy, the more deeper you go, there less helpful I can be. At least with emails I can forward it on to the right people.

For info the reference to the pre order page has no relevance to the Kickstarter page that backers pledged through. This is a website separate to the Kickstarter u.

Sorry for such a long post. As I said it's rather complex.

Thanks for any advice or thoughts.

neilmcl

What makes you think they are a UK company, they seem to think they're from the US.

Hintza

Sounds like an investment to me.

bris

Isn't the item made specifically for you as a backer? Not sure if distance selling is even correct for what you are doing.


1.As it's made specifically for you then the regs don't count.


2 As it's an investment then it's a business transaction so the regs don't count.


3 Kickstarter is American and everything goes through them so I doubt you can really say it's a UK company.


4. Far to complicated for this forum, you would need proper legal advice but it doesn't look good for you.

DoaM

Search this board for Kickstarter - this same question comes up from time to time.

NCC-1701

Have the Distance Selling Regulations not been superseded?

wealdroam

Threepints wrote: »

Hi Guys,

I think this is a complex issue but would be interested if any legal experts in consumer law may have an idea on the following.

I and many others backed a kickstarter project. The company are based in London and incorporated as a UK limited company with a UK address.

The money paid through kickstarter (no VAT included) was in dollars and the product under development is to be shipped from Taiwan (although this has only recently been disclosed), most EU backers thought that as a UK company goods would be shipped from the UK. Hence no duty payable. However with it being shipped direct to backers from Taiwan HMRC will obviously charge duty, adding approx £50 to the unit price paid.

A discussion has taken place that the product would come under the distance selling regulations and could be returned for a full refund including duties paid.

The company has issued the following response:


Technically we were and still am an US entity. That's why the campaign was in dollars. On top of that, all these laws have to go through Kickstarter before us. Pre order page says there may be custom duties and there's a terms and conditions page attached as well. Feel free to send us the legal stuff you find via email and we can cross check internally. This really feels like a legal audit but hey we don't mind, nothing to hide :P
Plus I'm not legal guy, the more deeper you go, there less helpful I can be. At least with emails I can forward it on to the right people.

For info the reference to the pre order page has no relevance to the Kickstarter page that backers pledged through. This is a website separate to the Kickstarter u.

Sorry for such a long post. As I said it's rather complex.

Thanks for any advice or thoughts.

Who is this UK limited company with a UK address you mention?

Threepints

wealdroam wrote: »

Who is this UK limited company with a UK address you mention?

Blocks Wearable Ltd
Company no 09199732 - Incorporated on 2 September 2014
20 Cambridge Mansions Cambridge Road,
London,
SW11 4RU

Threepints

neilmcl wrote: »

What makes you think they are a UK company, they seem to think they're from the US.

See above post.

Threepints

NCC-1701 wrote: »

Have the Distance Selling Regulations not been superseded?

Yes, but I could not remember the new Act. However the same principles pretty much still apply.

Threepints

Threepints wrote: »

Yes, but I could not remember the new Act. However the same principles pretty much still apply.

DoaM wrote: »

Search this board for Kickstarter - this same question comes up from time to time.

I have and previous posts have not quite been the same.