Scratchy — Terms of Service

These Terms of Service (“Terms”) are an agreement between Scratchy, Inc. (“Scratchy,” “we,” “us”) and the business that uses Scratchy (“you”). They cover our website at scratchy.ai, the Scratchy dashboard at app.scratchy.ai, Scratchy devices and their software, and the notifications we send, including text messages (together, the “Services”).

By creating an account, using the dashboard or installing a Scratchy device, you agree to these Terms. If you accept them for a business, you confirm that you’re authorized to bind that business. If you have a signed order form or other written agreement with us, it controls where it conflicts with these Terms.

Our Privacy Policy explains how we handle information. Please read Section 14 (Limitation of liability) and Section 16 (Governing law and disputes) carefully, because they limit what you can recover from us and say where disputes are heard.

1. The Services

Scratchy helps retailers detect lottery ticket theft. Scratchy devices connect between barcode scanners and the registers and lottery terminals they serve. They record lottery ticket sales and cash-outs and report them to the Scratchy dashboard, which raises alerts when the records don’t match.

We keep improving the Services, so we may add, change or remove features. Some features may be labeled beta or early access. Those are provided as they are and may change or be withdrawn. If we remove a feature you rely on, we’ll give you reasonable notice.

2. Accounts and your team

You must be at least 18 years old and use the Services for business purposes.
Give us accurate account information and keep it up to date.
Keep your sign-in details secure. You’re responsible for activity under your account.
When you invite someone to a store, they get the same access to that store as its owner, except that only the owner can delete the store. You’re responsible for who you invite, for their use of the Services, and for removing anyone who should no longer have access.
Tell us right away at hello@scratchy.ai if you think your account or a device has been compromised.

3. Scratchy devices

Installation. Install and use devices according to our instructions. Don’t open, modify or tamper with a device, move its storage card to other hardware, or connect it to equipment we don’t support.
Ownership. Ownership of devices, and any obligation to return them, is set out in your order. The software on every device is licensed to you under these Terms, not sold.
Updates. Devices update their software automatically over the internet. Keep them powered and connected so they receive updates and report scans.
Power and internet. You’re responsible for providing power and an internet connection for each device.
When something goes wrong. Devices are designed to get out of the way rather than stop your store. If a device loses its connection or can’t get an answer from us quickly, scans go through to the register or lottery terminal as normal and aren’t checked in real time. Scans made while a device is unplugged or switched off aren’t recorded at all.

4. Blocking and pass-through

Scratchy devices can change what reaches your register or lottery terminal:

At the register, a device stops scans that would ring up a lottery ticket the wrong way, such as the ticket’s UPC or the barcode on the front of the ticket, so staff scan the correct barcode. Every other scan passes through unchanged.
At the lottery terminal, if redemption blocking is on for a device, the device may hold back a ticket scan that our checks flag, such as a ticket that was never sold or has already been cashed. Redemption blocking is on by default, and you can turn it off for each device in the dashboard. With it off, flagged tickets are still recorded and raise alerts, but they aren’t blocked.
With POS pass-through on, a register device sends every scan through unchanged and records it.

A blocked scan doesn’t void a ticket or decide whether a prize is owed; the lottery’s rules and systems decide that. You’re responsible for how your store handles a blocked ticket, including paying valid winning tickets as your lottery retailer agreement requires.

5. Your responsibilities

Lottery and equipment agreements. You’re responsible for confirming that installing and using Scratchy is allowed under your lottery retailer agreement, your agreements with your register and equipment providers, and the lottery rules where you operate.
Your employees. You’re responsible for giving your employees any notice, and getting any consent, that the law requires for the information you put into Scratchy and for monitoring scans at your registers and lottery terminals.
Acting on alerts. A Scratchy alert points to activity that may need investigating. It isn’t proof that anyone did anything wrong. Investigate before you act, and follow employment and other laws when you do. Don’t discipline, dismiss or report anyone based only on a Scratchy alert.
The law. Use the Services in compliance with all laws that apply to you.

6. Acceptable use

You won’t, and won’t let anyone else:

use the Services for anything unlawful, or to defraud a lottery, a retailer or anyone else;
interfere with or disrupt lottery terminals, registers, the Services or other customers’ use of them, beyond the device behavior described in these Terms;
access accounts, stores, devices or data you aren’t authorized to access;
reverse engineer, decompile or copy the Services or device software, except where the law allows it despite this restriction;
probe, scan or test the security of the Services without our written permission;
resell, sublicense or provide the Services to anyone else unless we agree in writing;
upload malicious code, or use the Services to build a competing product.

7. Notifications and text messages

You choose which alerts you receive, and how, in Settings › Notifications.

Scratchy SMS alerts. If you add and verify a mobile number and opt in, Scratchy will send you automated text messages about your stores, such as theft, inventory, device and shift alerts.

Message frequency varies with activity at your stores.
Message and data rates may apply.
Consent to receive text messages is not a condition of purchase.
Reply STOP at any time to opt out. You’ll receive one message confirming that you’ve opted out. You can also turn SMS off in your notification settings.
Reply HELP for help, or email hello@scratchy.ai.
Carriers are not liable for delayed or undelivered messages.
Only add a mobile number you’re authorized to use, and remove it if the number changes hands.

How we handle phone numbers is described in our Privacy Policy.

Notifications can be delayed or fail for reasons outside our control, such as carrier or email provider problems, quiet hours you’ve set, or a device being offline. Don’t rely on notifications as your only way of monitoring your stores. The dashboard is the record of what happened.

8. Your data

Ownership. You own the information you and your devices put into the Services (“Customer Data”), including scans, store records, employee information and lottery reports.
Our use. You give us permission to host, process and use Customer Data to provide, secure, support and improve the Services, as described in our Privacy Policy.
Cross-store matching. To detect tickets cashed at a different store, you authorize us to compare your ticket records with those of other stores that use Scratchy, including stores run by other businesses. If a ticket from your inventory is cashed at another Scratchy store without being sold, both stores are told the ticket number and the other store’s name. The same applies when a ticket from another store’s inventory is cashed at yours.
Aggregated data. We may create aggregated or de-identified data from Customer Data that doesn’t identify you, your stores or any person, and use it for any lawful purpose, such as improving theft detection.
Your rights to the data. You confirm that you have the rights and permissions needed to give us Customer Data, including lottery reports and information about your employees.
Lottery reports. When you forward a report email to your store’s Scratchy address, you authorize us to download the report from the link it contains on your behalf.
Export. You can ask us for an export of your Customer Data at any time, including for 30 days after your account ends.

9. Fees

Fees for the Services and devices, and how they’re paid, are set out in your order or in pricing we agree with you in writing. If we haven’t agreed on fees, for example during a pilot, we provide the Services without charge until we tell you otherwise. We’ll give you at least 30 days’ notice before we start charging you or change your fees. Fees don’t include taxes, which you’re responsible for, other than taxes on our income.

10. Intellectual property and feedback

Scratchy and its licensors own the Services, including the dashboard, device software and hardware designs, and our names and logos. These Terms give you a limited, non-exclusive, non-transferable right to use the Services for your business while your account is active. We keep all rights we don’t expressly grant.

If you send us ideas or suggestions, we may use them without any obligation to you.

11. Third-party services

The Services work alongside systems we don’t control, such as lottery terminals, registers, scanners, mobile carriers, email providers and Pushover. We aren’t responsible for those systems, and your use of them is governed by your agreements with their providers.

12. Suspension and termination

These Terms apply from when you first use the Services until your account is closed.
You can stop using the Services and close your account at any time by emailing hello@scratchy.ai.
We may suspend access to the Services, or to a device, if we reasonably believe it’s needed to protect the Services, other customers or the public, or if you materially breach these Terms. When we can, we’ll tell you why and restore access once the problem is resolved.
We may end these Terms with 30 days’ notice, or right away if you materially breach them.
When these Terms end, your access ends and your devices stop reporting. We’ll handle Customer Data as described in Section 8 (Export) and our Privacy Policy.
Sections 8, 10, 13, 14, 15, 16 and 18 continue to apply after these Terms end.

13. Disclaimers

THE SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE.” TO THE FULLEST EXTENT THE LAW ALLOWS, SCRATCHY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT.

Scratchy helps you find theft. It doesn’t guarantee that it will find all theft or prevent any loss. We don’t promise that the Services will be uninterrupted or error-free, that every scan will be checked or recorded, that every alert will be accurate, or that every notification will arrive. Scratchy isn’t insurance, and it doesn’t replace your own inventory controls and lottery reconciliation.

14. Limitation of liability

TO THE FULLEST EXTENT THE LAW ALLOWS:

NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, OR FOR LOST PROFITS, REVENUE, DATA, INVENTORY OR TICKETS, INCLUDING LOSSES FROM THEFT, EVEN IF IT WAS TOLD THEY WERE POSSIBLE.
SCRATCHY’S TOTAL LIABILITY FOR ALL CLAIMS ARISING OUT OF OR RELATING TO THE SERVICES OR THESE TERMS WILL NOT EXCEED THE GREATER OF (A) THE FEES YOU PAID US FOR THE SERVICES IN THE 12 MONTHS BEFORE THE EVENT THAT GAVE RISE TO THE CLAIM, OR (B) $100.

These limits don’t apply to your obligation to pay fees, your obligations under Section 15, or your breach of Section 6.

15. Indemnification

You’ll defend Scratchy and its officers, employees and agents against any third-party claim, and pay the resulting losses and costs (including reasonable attorneys’ fees), to the extent the claim arises from:

Customer Data, including information about your employees;
actions you take based on the Services, including employment decisions; or
your use of the Services in breach of these Terms, your lottery retailer agreement or the law.

16. Governing law and disputes

These Terms are governed by the laws of the State of California, without regard to its conflict-of-laws rules. Before filing a claim, each party agrees to try to resolve the dispute informally by contacting the other and negotiating in good faith for at least 30 days. Any dispute arising out of or relating to these Terms or the Services will be heard only in the state or federal courts located in California, and both parties consent to the jurisdiction of those courts.

17. Changes to these Terms

We may update these Terms. We’ll post the new version on this page and change the effective date. If a change is material, we’ll tell you by email or in the dashboard at least 30 days before it takes effect, unless the law requires it to take effect sooner. If you keep using the Services after a change takes effect, you accept the updated Terms. If you don’t agree, stop using the Services and close your account.

18. General

Entire agreement. These Terms, our Privacy Policy and any order form are the entire agreement between you and Scratchy about the Services.
Assignment. You may not transfer these Terms without our written consent. We may transfer them as part of a merger, acquisition or sale of assets.
Events beyond control. Neither party is liable for delays or failures caused by events beyond its reasonable control, such as power or internet outages, carrier failures or natural disasters.
Severability. If any part of these Terms is found unenforceable, the rest stays in effect.
No waiver. Not enforcing part of these Terms doesn’t waive our right to enforce it later.
Independent parties. These Terms don’t create a partnership, agency or employment relationship.
Notices. We’ll send notices to your account email address or show them in the dashboard. Send notices to us at hello@scratchy.ai.

19. Contact us

For questions about these Terms, email hello@scratchy.ai.

Scratchy, Inc.