Study On Protection Of Consumers' Rights And Interests In Pre-sales Crowdfunding

With the continuous development of China's market economy,financial consumption is playing an increasingly important role in the lives of ordinary people.We usually associate it with investment and financial management behavior in the past,when mentioned financial spending.We do not think that our daily lives are inseparable from the convenience brought by financial institutions,such as the consumption of credit cards and the repayment of loans.The joining of the Internet economy has made the concept of “finance”,which sounds like a tall,fly into the homes of ordinary people.The rise of crowdfunding is a good testimony.The so-called crowdfunding is that the project sponsor sends a project offer to most unspecified consumers in the society.The consumer provides a certain amount of funds to the sponsor to participate in a crowdfunding project and obtain a return.Chinese academia divides crowdfunding into four categories based on the ultimate reward for crowdfunding participants: equity crowdfunding,creditor crowdfunding,donated crowdfunding,and pre-sale crowdfunding.Pre-sale crowdfunding is also called product crowdfunding.As the name suggests,the products of such crowdfunding projects are mostly related to science and technology innovation products or sports and entertainment products.Many times project sponsors have an innovative idea and have the ability to actually operate their ideas,but they can't help but be trapped in limited funds and can't predict the market's response to their projects.Pre-sale crowdfunding just provides an ingenious business model,where the project sponsors can obtain startup funding,promote their project products and communicate with consumers to reduce risks.Pre-sale crowdfunding has attracted much attention since its emergence in China.The earliest crowd-funding website in China,the on-line calling time,attracted a large number of consumers on the line,especially the domestic first public funded movie “One Hundred Trick-Jokes in 2013”.The successful release of the magazine has pushed pre-sale crowdfunding to the peak of development and gained recognition and participation from numerous consumers.However,due to the relative lag of laws and regulations and the non-establishment of the supervision system during the rapid development of pre-sale crowdfunding,many consumer rights violations have occurred.Pre-sale crowdfunding differs from traditional financial services in that consumers who support projects are ultimately rewarded not for currency but for a variety of physical products.More crowdfunding projects provide consumers with a commitment to provide professionalism.Services,such as invitations to participate in concerts,photo opportunities with project sponsors,etc.This shows that pre-sale crowdfunding is closer to life and should be a type of living consumption.If the legal supervision system that regulates traditional financial activities is used to supervise pre-sale crowdfunding,it will produce a series of applicable problems.Although the amount of money involved in the pre-sale crowdfunding financial consumer's participation in each transaction is small,the disputes generated are very frequent,and the scope of the disputes is also very extensive,if the pre-sale crowdfunding is not regulated the protection of consumer rights will have very serious social impacts and even hinder the development of the entire crowdfunding industry.Compared with the domestic countries,the crowdfunding industry in the United States,Japan,and other countries developed earlier,relatively established a relatively complete supervision system,and the protection of pre-sale crowdfunded financial consumers' rights and interests is reflected in their laws and regulations.Learn from the advanced experience of foreign countries,speed up the legislative activities for pre-sales crowdfunding and even the entire crowdfunding industry,and form a legal system and supervision system that suits the characteristics of China's market economy.It is all for the development of China's crowdfunding industry and the diversity of economic growth help.While writing protection for the interests of pre-sale crowdfunded financial consumers into the law,conducting strict project audits on pre-sale crowdfunding projects,real-time supervision of progress,and effective resolution of disputes,we must not ignore the intelle ctual property rights of project sponsors.Trade secrets,personal privacy protection.Improv e the special protection system of the “Intellectual Property Law”,strengthen the risk educ ation for pre-sale crowd-raising consumers,and set up a reasonable consumer withdrawal mechanism,plus the application of small lawsuits and public interest litigation in the proc ess of dispute resolution.Next,the supervision of pre-sale crowdfunding will be more effe ctive,and consumer protection will be more comprehensive.