Reward crowdfunding (Kickstarter, Indiegogo) involves backers pledging money in exchange for a reward — a product, experience, or recognition. Unlike investment crowdfunding, there is no equity or regulatory requirement. However, consumer protection laws apply and backers have rights if rewards are not delivered.

• Consumer Rights Act 2015 applies to reward crowdfunding with consumers
• If reward not delivered, backers may claim refund under Consumer Rights Act or via chargeback
• Distance Selling: 14-day cancellation right may apply to pre-orders
• Equity crowdfunding (investing for shares) is FCA-regulated — different rules apply
• HMRC: crowdfunding receipts are taxable income for most campaigns

Legal reference: Consumer Rights Act 2015; Consumer Contracts Regulations 2013; HMRC BIM40351