Business

Coolest Cooler’s Settlement Could Return Just $20 To Backers Who Paid $200

By Mike Rogoway
The Oregonian, Portland, Ore.

WWR Article Summary (tl;dr) Kickstarter has been a boon to craftspeople, artists and some entrepreneurs who turn to crowdfunding for niche projects that might otherwise have no way to pay for themselves. However, “Coolest Cooler” is just one of several examples of projects that started small but quickly grew overwhelmed by the demand.

The Oregonian, Portland, Ore.

Thousands of people who paid $200 for a tricked-out ice chest on Kickstarter might get as little as $20 back if the company never delivers.

That’s one provision in the Oregon Department of Justice’s settlement with Coolest Cooler, a Portland company that failed to ship more than 21,000 coolers to those who backed its crowdfunding campaign three years ago.

Oregon officials, who described broad outlines of the deal to The Oregonian/OregonLive on Monday, have now provided a copy of the full agreement.

Under terms already reported, Coolest Cooler agreed to provide 873 coolers to all its Oregon backers and others who complained to the state by mid-October. It also requires the company to set aside 10 percent of its profits from future sales to fulfill commitments to other backers.

The full agreement includes other important provisions, among them:

–A pledge by Coolest Cooler and crowdfunding campaign founder Ryan Grepper to pay $20 per cooler to all backers who still don’t have their product by the middle of 2020. And the agreement states that Grepper cannot avoid the obligation through bankruptcy.

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