Re:Patreon as a Platform Is in Trouble
by sweisman on Monday August 03, 2020 @08:50AM
(#24037053)
Patreon is on the hook for all arbitration costs, minus $250 that the aggrieved consumer must pay as a filing fee.
The risk is because Patreon's liability is open-ended. Each arbitration is a MINIMUM of $10K, and escalates from there, depending on the number and nature of claims.
If the claimants are not motivated by money, and they are not, they can push each arbitration to a full hearing and decision, rather than accept a settlement offer. Since they violated their own ToS by suing in court and doing so in a class action (two separate violations), they are in serious peril.
If they do that, Patreon could easily end up paying $100K per user.
Finally, ANY Patreon user can file a claim because of how badly they've botched the multiple revisions to the ToS since then.
The risk is because Patreon's liability is open-ended. Each arbitration is a MINIMUM of $10K, and escalates from there, depending on the number and nature of claims.
If the claimants are not motivated by money, and they are not, they can push each arbitration to a full hearing and decision, rather than accept a settlement offer. Since they violated their own ToS by suing in court and doing so in a class action (two separate violations), they are in serious peril.
If they do that, Patreon could easily end up paying $100K per user.
Finally, ANY Patreon user can file a claim because of how badly they've botched the multiple revisions to the ToS since then.