COMPLIANCE POLICY

Last Updated: 09-June-2026

3.1 OVERVIEW

The Platform operates a multi-service marketplace ecosystem including:

  • Dropshipping Marketplace
  • Ecommerce Marketplace
  • Classified Ads Marketplace

This Policy defines compliance rules including verification, tax handling, prohibited items, risk controls, fraud prevention, and enforcement measures.

All users must comply with applicable laws and Platform policies.

3.2 SELLER VERIFICATION

3.2.1 Dropshipping Sellers

  • Identity verification may be required
  • No business license required
  • Must pass Platform risk and fraud screening

3.2.2 Ecommerce Business Sellers

Only verified business entities are allowed:

  • Valid business registration/license
  • KYC (identity verification)
  • Bank account verification
  • VAT/GST registration (where applicable)

3.2.3 Platform Rights

The Platform reserves the right to:

  • Approve or reject any user or seller
  • Request additional documentation at any time
  • Suspend accounts during verification
  • Reject applications at its sole discretion

3.3 VAT VALIDATION SYSTEM

3.3.1 Verification System

For ecommerce sellers, the Platform may use VAT validation systems to:

  • Validate VAT/GST registration numbers
  • Confirm business legitimacy
  • Reduce fraud and compliance risks

3.3.2 VAT Requirements

  • VAT verification may be required before approval
  • Invalid or unverified VAT details may result in rejection or suspension

3.3.3 Ongoing Monitoring

The Platform may:

  • Re-verify seller information periodically
  • Suspend accounts for non-compliance

3.3.4 Dropshipping Exception

VAT handling is managed by the Platform only where legally applicable.

Dropshippers are not required to independently register VAT under this model.

3.4 TAX POLICY (VAT & GST)

3.4.1 Dropshipping Marketplace

  • Platform may act as Merchant of Record in selected jurisdictions
  • Platform calculates, collects, and remits taxes where legally required
  • Prices may be displayed tax-inclusive depending on region

3.4.2 Ecommerce Marketplace

  • Sellers are fully responsible for VAT, GST, income, and corporate taxes
  • Platform only calculates and displays applicable taxes
  • Platform does not assume tax liability for sellers

3.4.3 Classified Ads Marketplace

  • No tax collection or remittance by the Platform
  • Users are fully responsible for their own tax obligations

3.4.4 Tax Transparency

  • All applicable taxes are displayed before checkout
  • No hidden fees are applied

3.5 PRODUCT COMPLIANCE & LEGAL RESPONSIBILITY

The Platform does not guarantee that products comply with all local laws, import rules, or usage requirements in the buyer’s jurisdiction.

Buyers are solely responsible for ensuring that products are:

  • Legal for import, ownership, resale, and use
  • Compliant with safety, certification, and licensing requirements
  • Used in accordance with local laws and restrictions

The Platform acts strictly as a marketplace facilitator and assumes no liability for misuse or legal non-compliance, except where required under applicable law.

3.6 PROHIBITED ITEMS POLICY

3.6.1 Strictly Prohibited

  • Illegal drugs or narcotics
  • Weapons, ammunition, and explosives
  • Counterfeit or stolen goods
  • Fraudulent or deceptive listings

3.6.2 Restricted Items

  • Hazardous or regulated chemicals
  • Medical products without approval
  • Wildlife or endangered species products
  • Illegal or restricted adult content

3.6.3 Enforcement Actions

The Platform may:

  • Remove listings immediately
  • Suspend or permanently ban accounts
  • Withhold or freeze payments
  • Report violations to authorities where required

3.7 CLASSIFIED ADS COMPLIANCE

  • Users are responsible for listing accuracy
  • The Platform does not fully verify all listings
  • Prohibited item rules apply in all cases

3.8 RISK & FUNDS ENFORCEMENT POLICY

3.8.1 Escrow Protection

  • Payments are held securely until order completion
  • Funds are released after delivery confirmation or dispute resolution

3.8.2 Fund Holds & Freezes

The Platform may freeze or withhold funds if:

  • Fraud or suspicious activity is detected
  • Chargeback risk exists
  • Compliance or verification issues arise
  • Policy violations are identified

3.8.3 Account Suspension

Accounts may be:

  • Temporarily suspended during investigation
  • Permanently banned for fraud, abuse, or illegal activity

3.8.4 Chargeback Protection

  • Funds may be withheld during chargeback disputes
  • Sellers must provide proof of delivery
  • Repeated chargebacks may lead to termination

3.9 FRAUD PREVENTION

The Platform actively prevents:

  • Fake orders or transactions
  • Refund and return abuse
  • Manipulated ratings or reviews
  • Fake tracking or delivery fraud
  • Misleading or duplicate listings

Enforcement may include cancellation, fund holds, or account termination.

3.10 PLATFORM RIGHTS

The Platform reserves the right to:

  • Monitor and audit user activity
  • Suspend or terminate accounts at any time
  • Withhold funds for risk or compliance reasons
  • Request additional verification documents
  • Update policies without prior notice where required by law
  • Report illegal activity to authorities

3.11 LIMITATION OF LIABILITY

The Platform is not responsible for:

  • Product quality, delivery, or seller performance
  • Tax filing or compliance failures by users
  • Funds held during investigations or disputes
  • User-to-user disputes (especially Classified Ads)
  • Misuse or illegal use of products

3.12 GOVERNING LAW

This Policy is governed by the applicable laws based on the operating entity:

  • LilBay
  • Sweden law
  • European Union regulations

3.13 ACCEPTANCE

By using the Platform, users confirm that they:

  • Comply with all applicable laws
  • Accept full responsibility for their actions
  • Agree to all Platform policies and enforcement rules