Florida Statutes 501.2042 – Unlawful acts and practices by online crowd-funding campaigns
Current as of: 2023 | Check for updates
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(1) As used in this section, the term:
(a) “Crowd-funding campaign” means an online fundraising initiative that is intended to receive monetary donations from donors and is created by an organizer in the interest of a beneficiary.
Terms Used In Florida Statutes 501.2042
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: includes individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. See Florida Statutes 1.01
(b) “Crowd-funding platform” means an entity doing business in this state which provides an online medium for the creation and facilitation of a crowd-funding campaign.
(d) “Organizer” means a person who:
1. Resides or is domiciled in this state; and
2. Has an account on a crowd-funding platform and has created a crowd-funding campaign either as a beneficiary or on behalf of a beneficiary, regardless of whether the beneficiary or the crowd-funding campaign has received donations.
a. For crowd-funding campaigns related to and arising out of a declared disaster, a crowd-funding platform must:
(I) Collect and retain, for 1 year after the date of the declared disaster, the name, e-mail address, phone number, and state of residence of the organizer.
(II) Require the organizer to indicate, on the crowd-funding campaign, the state in which they are located.
(III) Cooperate with any investigation by or in partnership with law enforcement.
(IV) Clearly display and direct donors to fundraisers that comply with the crowd-funding platform’s terms of service.
b. When an organizer arranges a crowd-funding campaign related to and arising out of a declared disaster, the organizer must attest that:
(I) All information provided in connection with a crowd-funding campaign is accurate, complete, and not likely to deceive users.
(II) All donations contributed to the crowd-funding campaign will be used solely as described in the materials the organizer posts or provides on the crowd-funding platform.