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28 AGs Call on GoFundMe for Changes in Terms of Service

  • New Mexico AG Hector Balderas, Mississippi AG Lynn Fitch, and Louisiana AG Jeff Landry led a coalition of 28 AGs that sent a letter calling on the online crowdfunding platform GoFundMe to make improvements in the clarity and disclosure of the site’s Terms of Service for consumers who use the platform.
  • The AGs alleged that GoFundMe has the ability to “suspend or remove a user’s account, freeze a donation, or stop payment to a fundraiser for ‘any activity that GoFundMe may deem, in its sole discretion, to be unacceptable,’” and criticized the company’s unclear parameters for which it may block, freeze, redirect, or refund a donation without the user’s consent. The AGs stated that, if GoFundMe makes “opaque and unilateral” decisions about a fundraiser’s legitimacy, it “has likely crossed the line from fundraising platform to fundraiser itself.”
  • The AGs requested that GoFundMe explain in a responsive letter its criteria for investigating and analyzing fundraisers, how the company determines whether to block, freeze, re-direct or refund donations, and how the company then handles such donations. In addition, the AGs asked that GoFundMe ensure that its Terms of Service and user interface adequately explain such policies and that the company explain in detail to the AGs how it defines the term “unacceptable” in its Terms of Service.