Zalchos Compliance & Responsible Alcohol Delivery

Zalchos Inc. is a technology marketplace platform. Zalchos connects customers with independently operated, licensed liquor retailers (“Vendors”) and authorized delivery personnel (“Drivers”).

Zalchos does not sell, own, warehouse, or distribute alcohol. All alcohol purchases are transactions between the customer and the applicable licensed Vendor. Vendors independently set their own product listings, pricing, and inventory, and are solely responsible for fulfilling orders in compliance with applicable provincial liquor legislation.

Zalchos provides technology infrastructure — including order management, payment processing facilitation, delivery coordination, and compliance tooling — and collects a technology service fee for these services.

Zalchos operates in Alberta in accordance with the Alberta Gaming, Liquor and Cannabis Act (AGLC) and applicable AGLC regulations governing liquor retail and delivery.

Under this model:

• All alcohol sold through the platform is sold by AGLC-licensed liquor retailers who hold valid retail liquor store licences.
• Licensed Vendors are solely responsible for their regulatory compliance, including compliance with all AGLC licence conditions.
• Vendors are responsible for inventory management, product pricing, order preparation, and ensuring orders are fulfilled in accordance with their licence.
• Zalchos does not hold a liquor licence and does not engage in the sale of alcohol.
• Delivery of alcohol is performed by authorized delivery personnel who are trained in responsible alcohol service.

All retailers onboarding to Zalchos must hold a valid provincial liquor retail licence issued by the applicable regulatory authority (e.g., AGLC in Alberta). Vendors must provide their licence documentation during the vendor registration process.

Licences are verified by Zalchos before the Vendor account is activated and can accept orders on the platform.

Vendors remain fully responsible for maintaining their licence in good standing and complying with all conditions attached to their licence. Zalchos does not assume any regulatory responsibility on behalf of Vendors.

Vendors whose licences are suspended, revoked, or expire will be immediately suspended from the platform.

Licensed Vendors on the Zalchos marketplace are solely responsible for:

• Uploading and maintaining a valid liquor licence document during the onboarding process.
• Setting accurate product listings, pricing, and inventory on the platform.
• Preparing and packaging orders in compliance with applicable regulations.
• Ensuring orders are ready for pickup within the agreed preparation time.
• Maintaining accurate transaction records for regulatory audit purposes.
• Complying with all provincial and federal laws governing the sale of alcohol.
• Ensuring orders are not fulfilled to individuals under the legal drinking age.
• Complying with all conditions attached to their liquor licence.

Customers must meet the legal drinking age in their province to place orders on the Zalchos platform.

Age verification occurs at two stages:

• At checkout — customers must confirm they meet the legal drinking age for their province before completing an order.
• At delivery — a valid government-issued photo ID must be presented to the delivery driver before the order is handed over.

Authorized delivery personnel on the Zalchos platform are trained in responsible alcohol service and are required to follow strict delivery guidelines:

• Verifying government-issued photo ID confirming legal drinking age for all alcohol deliveries.
• Refusing delivery to anyone who appears visibly intoxicated.
• Refusing delivery to anyone who cannot provide valid identification.
• Never delivering alcohol to individuals under the legal drinking age.
• Never leaving alcohol unattended at a delivery address.
• Complying with all provincial regulations governing alcohol delivery.
• Completing mandatory responsible alcohol service training before making deliveries.

Payments are processed using Stripe Connect marketplace payments. This payment structure reflects the marketplace model: the alcohol sale revenue is remitted directly to the licensed Vendor who made the sale.

Zalchos collects a separate technology service fee for facilitating the order, payment processing, and delivery coordination. Zalchos does not receive revenue from the sale of alcohol itself.

Zalchos operates in accordance with provincial alcohol delivery regulations across Canada and partners only with licensed retailers. Zalchos does not hold a liquor licence and does not engage in the sale of alcohol.

Vendors are solely responsible for maintaining valid liquor licences and complying with all applicable liquor control authorities, including the AGLC in Alberta. Zalchos provides technology tools to support compliance but does not assume regulatory responsibility on behalf of Vendors.

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