MSC Genuine Claim Protection Framework

1. Framework Overview

This framework defines how claims are validated, investigated, and approved.

The goal is simple:

• Reward genuine victims
• Deter fraud
• Protect legitimate merchants
• Maintain trust in the ecosystem

4. Chain-of-Custody Verification

MSC validates the journey of the product through:

• Merchant shipment records
• Warehouse dispatch logs
• Delivery confirmation
• Batch traceability data
• Manufacturer authentication channels where necessary

If the integrity of custody is broken outside MSC-approved handling, eligibility may be void.

5. Investigation Process

Every claim goes through a structured review:

Stage 1 — Intake Review

Check documentation completeness and purchase legitimacy.

Stage 2 — Merchant & Manufacturer Inquiry

Supplier is notified and required to submit authenticity proof.

Stage 3 — Technical Verification

MSC may:

• Request sample return
• Conduct independent quality checks
• Involve regulators or brand owners

Stage 4 — Decision

Claim approved / rejected / needs more evidence.

6. Claim Validity

6.1 What Counts as a Valid Counterfeit Case

• Fake or cloned batch numbers
• Expired products relabelled as valid
• Packaging inconsistent with manufacturer standards
• Confirmed falsification by brand owner or regulator

6.2 What Is NOT Eligible

The promise does not cover:

• Damage after delivery due to poor storage
• Products purchased outside MSC
• Pricing disputes
• Change of mind
• Slow sales
• Errors caused by pharmacy handling
• Claims submitted after resale
• Missing batch identifiers
• Attempts to manipulate packaging

Fraudulent claims may lead to account suspension.

8. Patient Harm Protocol (Disclaimer)

Pharmacy remains solely responsible for:

1. Patient care and treatment
2. Patient compensation (if Pharmacy is liable)
3. Medical costs arising from harm
4. Legal defense against patient lawsuits
5. Professional duty of care under PCN regulations

9. Compensation Structure

If approved:

• Pharmacy receives 3× the product value.
• MSC then recovers liabilities from the responsible merchant under contractual agreements.

Repeat Claim Monitoring: Frequent claims from the same pharmacy trigger enhanced audits. Unusual patterns may lead to investigation before payout.

10. Legal & Compliance Safeguards

Submission of a claim equals a declaration that the information provided is true.

False claims may attract:

• Recovery of paid amounts
• Suspension
• Permanent removal
• Legal reporting

11. Why This Protects Honest Pharmacies

Because abuse would:

• Increase prices
• Discourage genuine merchants
• Weaken trust
• Slow approvals

Strong validation ensures fast payout for real cases.

12. Margin, Deposit & Risk Control Addendum

To ensure the sustainability of the "Fake product? Get paid back three times" promise while keeping merchant entry barriers reasonable, MSC operates a progressive margin and settlement control system.

This system balances:

• Merchant growth
• Buyer trust
• Platform protection
• Genuine claim funding

12.1 Flexible Entry — No Mandatory Upfront Deposit

Merchants are not required to pay a security deposit at onboarding. Instead, merchants select their preferred level of commitment and grow into higher responsibility tiers as their transaction volume increases.

This reduces resistance to joining the platform while still maintaining a path toward stronger guarantees.

12.2 Merchant Security Deposit & Commission Deduction Mechanism

To support the Genuine Claim Protection Framework and ensure the platform can respond quickly to verified counterfeit claims, MSC may implement a merchant security deposit mechanism funded through temporary commission deductions.

Deposit Threshold

The maximum security deposit required from a merchant shall not exceed ten (10) times the merchant's estimated daily sales volume on the MSC platform.

Commission Deduction Process

Instead of requiring an upfront payment, MSC may temporarily deduct a portion of the merchant's commission during the settlement cycle until the required deposit threshold is reached. If the maximum deposit amount has not yet been reached, deductions will continue during each settlement period. Once the required deposit amount is achieved, no further deductions will be applied.

Settlement Period

The commission settlement cycle is one (1) month.

At the end of the settlement cycle, one of the following outcomes will apply:

• Deposit Not Fully Collected: If the required deposit amount has not been fully accumulated within the settlement period, the deducted commission amount will be refunded to the merchant at the end of the month.
• Deposit Fully Collected: If the required deposit amount is fully accumulated within the settlement period, commission deductions will stop, and the deposit will remain on record to support compensation obligations under the Genuine Claim Protection Framework.

Use of Deposit Funds

The deposit may be used exclusively for verified compensation claims relating to counterfeit or non-compliant products, as determined under the MSC dispute resolution and verification procedures.

Future Adjustment of Deposit Ratio

As the platform grows and merchant activity increases, MSC reserves the right to adjust the deposit calculation methodology. The effective deposit level may be revised to represent approximately 5%–8% of a merchant's transaction value, depending on operational risk levels, platform scale, and regulatory considerations. Any such adjustments will be communicated to merchants in advance.

12.3 Incentives After Deposit Payment

Merchants who commit financially receive operational and visibility benefits. After payment:

• More SKUs can be displayed
• Products receive stronger ranking priority
• Orders may be matched preferentially
• Participation in major campaigns increases
• Trust badges become available

In short: higher commitment → higher opportunity.

12.4 Trust Badge / Compensation Identifier

Merchants who participate in the protection programme receive a visible label such as "First-Party Compensation" or "Threefold Compensation for Counterfeits".

This badge:

• Improves pharmacy confidence
• Increases conversion rates
• Differentiates responsible merchants
• Signals platform-backed reliability

If a merchant does not participate in the deposit programme, the badge is not displayed and the commitment is not advertised. No badge = lower trust perception.

12.5 Settlement Cycle as Risk Protection

MSC uses settlement timing as a financial safety buffer.

• Pharmacy Obligation: Users must confirm receipt and product verification within 3 days of delivery.
• Merchant Settlement: Payouts are released after one month.

This creates a verification window that allows for authenticity review, claim submission, and preliminary investigation before funds are released.

If a claim is raised, settlement can be paused.

12.6 Funding Priority During Claims

When counterfeit is confirmed:

1. Platform first checks merchant deposit / escrow
2. If insufficient → funds recovered from receivables
3. If unresolved → legal & recovery procedures

This ensures pharmacy compensation remains credible while maintaining financial discipline for merchants.

13. Behavioural Impact of the System

This model:

• Discourages risky suppliers
• Rewards reliable merchants
• Builds visible trust signals
• Reduces fraud incentives
• Protects MSC cash flow
• Keeps platform promise believable

14. Strategic Outcome for MSC

By linking deposits, visibility, and settlement controls, MSC:

• Aligns incentives across the ecosystem
• Builds long-term market confidence
• Enables scalable growth without uncontrolled financial exposure
• Creates a structured pathway for merchants to unlock greater opportunity

The framework ensures that protection promises remain strong, enforceable, and commercially sustainable.

16. Contact

For support, legal queries, or disputes regarding this framework:

• Email: hr@msc.store