[jamesk_au]

"He didn't actually charge people before the product was finished and they were able to opt-out after they knew what happened. Would have been a whole different story if the cards had actually been charged."

He does note that he had to "authorize a $0 transaction" in order to store the details for each credit card.

But leaving that aside, not only was his conduct misleading, query whether legally enforceable contracts were entered into as soon as mutual promises were exchanged (promise to pay made by proffering means of payment in exchange for promise to deliver product).

If that is the proper analysis, a distinction based on whether the credit cards were ultimately charged does no more than draw the line between civil and criminal liability.

He should be glad that no one actually relied on what he said. Those who deal with him in the future might now do so with a degree of caution. He has probably copped enough flak in these comments to bring the message home to him - or at least I hope he has. I like the premise for PublicBeta, and it would be a shame if that service were tarred with the same brush.