Light Harmonic (LH Labs). Scam? USD$6 million not delivered since 2014

[firedog]

3 hours ago, avta said:

You have been more than accommodating. If you paid with a credit card I would contact the CC company and ask them for help. If not I would suggest filing a police report.

One of the prolems with crowdfuding is that you are not buying a product - you are financing, as it were, a startup project in which you "invest" money but get no stock - just the promise of the finished product. If the promise isn't fulfilled you are screwed.

Basically, you are gambling money in order to "win", by getting a future product at a discounted price. When your gamble doesn't pay off, you lose. The police can't help you b/c you haven't been cheated. You've simply gambled and lost.

 

That said, in his position I'd ask for my money back or turn to my CC company and ask them to void the sale. He's certainly waited more than enough time and shouldn't be strung along by the company.

[firedog]

I remember that Scoggins article from way back.

There isn't really anything wrong with what Scoggins wrote, except: he didn't take into account that there are dishonest people who have no issue ripping off trusting consumers. His praise for the LH principals is thus quite ironic. Even manufacturer direct to consumer is more secure than crowdfunding. Part of what you pay for in more traditional channels is security, someone who backs up a product, and products that actually exist.

 

So far I've only been burned a couple of times with crowdfunding. Fortunately both were for very small amounts for pocket type gadgets. One turned out to be a pure scam with no intent to make the product at all. What most bothered me about it was that the site let the scammer continue the scam long after it was obvious the thing was a scam. Protests from the crowd to the site were ignored for a long time. The other was just a guy who couldn't manage to produce the product with the amount he collected.  Not a crook, just not competent. 

 

I wouldn't put a significant sum into a crowdfunded product. People seem to forget that crowdfunding isn't a purchase or an investment - it's a speculative gamble. You don't own anything until/unless the product is actully delivered.