Commercial Risk Disclosure & FTC Disclaimers
Statutory disclosures regarding business intelligence simulations, advertising capital risk, stop-loss ceilings, and the non-guarantee of commercial revenue under FTC guidelines.
Commercial Risk & FTC No-Revenue-Guarantee Notice
MeritSKU provides analytical product intelligence and theoretical simulations based on user assumptions and historical market benchmarks. MeritSKU makes no promise, representation, or guarantee of commercial revenue, profitability, conversion rates, or return on ad spend (ROAS). Past performance and MeritScore benchmarks do not guarantee future results. Paid advertising campaigns carry capital risk, including the possible loss of 100% of allocated ad spend. Recommended ad ceilings ($200 to $1,000) are stop-loss risk mitigation bounds, not earnings promises. Merchants are solely responsible for supplier quality, regulatory compliance, and storefront publishing decisions.
1. Statutory Framework & Platform Purpose
The Federal Trade Commission (FTC) requires commercial software platforms offering market intelligence, unit economics modeling, and e-commerce workflows to clearly disclose the realistic nature of analytical forecasts.
2. Express No-Revenue & No-Profit Guarantee
MeritSKU expressly disclaims any representation or warranty regarding:
- Sales Volume & Gross Merchandise Value (GMV): Using MeritSKU does not guarantee that any product listing will receive visitor traffic or generate sales.
- Profitability & Margins: Theoretical Contribution Margins (CM1 / CM2) do not guarantee positive cash flow or net profitability.
- Advertising Return (ROAS): Break-even ROAS targets and target CPAs are mathematical thresholds, not performance guarantees.
- Market Persistence: Ingested historical market signals do not guarantee continued future demand.
3. Theoretical Simulations vs. Live Market Realities
MeritScore™ Modeling
The MeritScore (0–100) measures empirical alignment across six dimensions based on user inputs and public data. A high score signifies favorable theoretical conditions under tested assumptions, NOT guaranteed profitability.
Landed Cost Sensitivities
Unit economics matrices simulate landed margins across retail pricing and CAC variations. Real-world landed costs fluctuate due to tariffs, currency rates, freight volatility, and payment processing fees.
4. Advertising Capital Risk & Stop-Loss Ceilings ($200–$1,000)
Testing commercial products via digital advertising involves capital risk. Merchants may lose 100% of their allocated advertising budget without acquiring a customer or generating profitable transactions.
The mandatory Authorized Ad Spend Ceiling ($200 to $1,000 USD) enforced in MeritSKU test plans functions strictly as a stop-loss boundary to cap downside financial exposure. The ceiling is NOT an earnings projection or promise of customer acquisition.
5. Merchant Sole Operational Responsibility
Draft-Only Invariant: MeritSKU strictly exports products to Shopify as unpublished drafts (status: DRAFT). The merchant retains 100% unilateral discretion and responsibility for publishing or activating listings on a public storefront.
Regulatory & Product Safety: Merchants are exclusively responsible for auditing supplier credentials, inspecting physical samples, verifying FTC claims substantiation, ensuring CPSC/FDA compliance, and managing customer support and fulfillment.
6. Case Studies & Benchmark Suites
All case studies, test datasets, or benchmarks (such as the 30-Opportunity Curated Golden Benchmark Regression Suite) illustrate algorithm performance under controlled, isolated historical test conditions. They do not represent typical or average merchant earnings.
Regulatory & FTC Compliance Contact: compliance@meritsku.com
MeritSKU Inc. • Legal & Regulatory Compliance • 1209 Orange Street, Wilmington, DE 19801, USA