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AI & Data Usage Policy

THIS LICENSE AGREEMENT (HEREINAFTER "AGREEMENT") IS AN AGREEMENT BETWEEN YOU (THE PERSON OR COMPANY, HEREINAFTER "YOU" OR "CLIENT," WHO IS BEING LICENSED TO USE THE SOFTWARE OR SERVICES) AND ZOWTA, LLC d/b/a SHIPPERHQ (HEREINAFTER WE/US/OUR OR SHIPPERHQ). UNLESS THE CLIENT HAS ANOTHER VALID AGREEMENT FOR THE PURCHASE AND USE OF THE SERVICES, THIS AGREEMENT APPLIES TO ALL PRODUCTS, SOFTWARE, SCRIPTS OR SERVICES YOU USE WHICH ARE OWNED BY US INCLUDING BUT NOT LIMITED TO SHIPPERHQ, SHIPPERHQ EXTENSIONS FOR MAGENTO AND SHIPPERHQ APPLICATIONS FOR BIGCOMMERCE, SHOPIFY, WOOCOMMERCE AND OTHER PLATFORMS (COLLECTIVELY, THE "SERVICES" OR "SOFTWARE").

1. By using the Software you acknowledge that you have read this Agreement, and that you agree to the content of the Agreement and its terms, and agree to use the Software in compliance with this Agreement. Additionally, you agree to be bound by the terms of the ShipperHQ Privacy Policy located at https://shipperhq.com/privacy (“Privacy Policy”) which are incorporated by reference into this agreement.

2. The Agreement comes into legal force at the moment when you voluntarily access our Services by any means or use our Software from our site or receive it through email or on data medium at our discretion.

3. We are the copyright holder of the Software. The Software or a portion of it is a copyrightable matter and is liable to protection by the law. Any activity that infringes the terms of this Agreement or which violates copyright law will be prosecuted according to the current law. We reserve the right to revoke the license of any Client who is holding an invalid license.

4. This Agreement gives you the right to use the Software solely for your own personal or business use, subject to all other terms of this Agreement. Any distribution of the Software without our consent, including noncommercial distribution is regarded as violation of this Agreement and entails liability, according to the current law.

5. You shall not yourself nor shall you authorize or permit a third party to: (a) modify, adapt, or create any derivative works using any part of the Software or Service except as allowed by this Agreement or (b) reverse engineer, decompile, decode, decrypt, disassemble, or attempt to derive any source code from the ShipperHQ SaaS Services.

6. You may not give, sell, distribute, sub-license, rent, lease or lend any portion of the Software or access to the Service to anyone. You may not place the Software on a server so that it is accessible via a public network such as the Internet for distribution purposes.

7. You are bound to preserve all copyright information intact; this includes all text and/or links included with the Software.

8. We reserve the right to publish a selected list of Clients of our Software unless prevented by law, contract, or written request from doing so. You may decline us this right by contacting us by email to admin@shipperhq.com stating that you do not wish us to use your company name in our marketing.

9. You are responsible for procuring and maintaining all devices, machines, equipment, and access to other services required to use the Software or Services. You are also responsible for ensuring the confidentiality of all credentials provided by ShipperHQ to access or use the Services or Software. We will not be liable to you for any damages (including any loss of profits/saving, or incidental or consequential) caused to you, your information, and/or your business arising out of the use or inability to use this Software or the unauthorized use of your credentials.

10. We are not liable for prosecution arising from use of the Software against law or for any illegal use.

11. If you fail to use the Software in accordance with the terms and conditions of this Agreement, it constitutes a breach of the Agreement, and your license to use the Software and the Services is revoked.

12. ShipperHQ may charge a fee or fees for access to or use of the Service or any portion thereof (collectively, “Service Fees”). If your access or use is subject to such fees you will be required to select a subscription plan for access to the Service (“ShipperHQ Plan”) as described at https://shipperhq.com/plans and provide ShipperHQ with payment information of a payment instrument accepted by ShipperHQ. Any information you provide must be accurate and by providing this information you represent and warrant that you are authorized to use such payment instrument.You also agree to promptly inform ShipperHQ of changes to your contact and payment information (for example, a contact email address, your billing address or credit card expiration date) by updating your information in your account or by contacting us.

13. We reserve the right to seek collection of any unpaid amount owed for a ShipperHQ Plan or other Software or Services. You hereby authorize ShipperHQ to bill your payment instrument with any amount owed to us. If we are unable to collect any unpaid amount owed to us by means of your provided payment instrument you must immediately provide a valid payment instrument for this purpose. We reserve the right to terminate access to ShipperHQ accounts for non-payment. We must receive payment in full prior to reinstating an account.

14. We reserve the right to change the Service Fees we charge. We will provide notice by email at least 30 days prior to these changes taking effect if these changes apply to the cost of your ShipperHQ Plan.

15. ShipperHQ expressly reserves the right to limit the volume and rate of API requests permitted to the Services for your ShipperHQ account up to the Usage Limit of your ShipperHQ Plan described at https://shipperhq.com/plans. If your account exceeds this limit you will need to immediately either (a) upgrade your account to a ShipperHQ Plan which includes a sufficient Usage Limit or (b) reduce the rate of API Calls to an appropriate rate for your ShipperHQ Plan. At ShipperHQ’s discretion, if neither of these actions have been taken successfully within 15 business days, we may terminate access to your ShipperHQ account. Notwithstanding other provisions in this section, ShipperHQ reserves the right to immediately and without prior notice terminate your access to the Services temporarily or permanently if (a) the number of API Calls made to the Service within a certain calendar month exceeds 200% of the Usage Limit included with your then-current subscription plan or (b) in ShipperHQ’s sole discretion, the API Call activity in question presents a risk to the Service as a whole.

16. Along with Service Fees, ShipperHQ will collect from you all taxes, duties, or other governmental fees which we are required by law or statute to collect. ShipperHQ has the right to adjust the amount charged to you for such fees without prior notice to ensure compliance with our obligations under relevant laws or statutes.

17. Requests for cancellation of your subscription to the Service must be received in writing (which may be by email) at least three (3) business days prior to the processing of any scheduled renewal payments in order to permit cancellation of the upcoming payment. Neither cancellation of your subscription to the Service nor Termination of this Agreement bind us to return, refund, or credit to you any amount previously paid to ShipperHQ for use of the Software or access to the Service.

18. ShipperHQ reserves the right to change this Agreement at any time and impose its clauses at any given time. We will provide notice of any changes thirty (30) days prior to the date such changes become effective to all active ShipperHQ subscribers. Notice will be provided by way of email to the contact email associated with your ShipperHQ account or by way of a notice posted at ShipperHQ.com. Any use of the Service after the date on which the revised Agreement becomes effective will constitute acceptance of the Agreement as revised. If you do not wish to agree to the revised Agreement, you must contact us in writing to request termination of this Agreement and, if applicable, cancellation of your subscription to the service.

19. This Agreement remains effective until terminated. We retain the right to terminate your license to use the Software at any time, if in our sole discretion, you are not abiding by the terms of the Agreement, including, but not limited to, obscuring or removing any link or copyright notice as specified in this agreement or failure to submit sufficient payment for Service Fees or other charges owed to ShipperHQ in a timely manner.

20. You may terminate this Agreement at any time by destroying all copies of the Software and requesting in writing (which may be by email) cancellation of your subscription to the Service in accordance with section 17 of this Agreement.

21. Failure to access the Service or use the Software for any reason and for any period of time does not in itself constitute notice of Termination of this Agreement or cancellation of your subscription to the Service. For example, if you discontinue use of an ecommerce platform on which you had previously installed the Software and subscribed to the Service, your Agreement with ShipperHQ will not be Terminated and your subscription to the Service will remain active until you have requested cancellation in writing as described in section 20.

22. If you continue to use the Software after ShipperHQ gives you notice of termination of your license, you hereby agree to accept an injunction to enjoin you from its further use and to pay all costs (including but not limited to reasonable attorney fees) to enforce our revocation of your license and any damages suffered by us because of your misuse of the Software.

23. In the course of providing the Services to you, we process certain personally identifiable data about you or your customers ("Personal Information") on your behalf. By accepting this Agreement and using the Services you agree to be bound by the terms of the ShipperHQ Privacy Policy which governs our collection, processing, and storage of Personal Information unless alternate terms are agreed in writing between you and ShipperHQ.

24. With regard to the processing of Personal Information about your customers, you shall act as the Data Controller, ShipperHQ shall act as the Data Processor. With regard to the processing of Personal Data about you and your company or employees and/or agents thereof we shall act as both the Data Controller and Data Processor. ShipperHQ shall collect, process, and/or store Personal Data only for the purpose of providing the Services or other legitimate business interests in compliance with all applicable laws and regulations and all published ShipperHQ policies and shall treat Personal Information as confidential information to the extent required or allowed by law and/or contract.

25. Residents of the European Economic Area have the right to, at any time, object to our processing of their Personal Data, ask us to restrict processing of their Personal Data, or request portability of their Personal Data. ShipperHQ will comply with all such requests as required and permitted by law. Residents of the European Economic Area also have the right to complain to a data protection authority about the collection and processing of their Personal Data. ShipperHQ will fully comply with any such authority to the extent required by law. You have the right to withdraw consent at any time and ShipperHQ will respond to all such notifications of withdrawal of consent in a reasonable and timely manner. Withdrawal of consent does not affect the lawfulness of collection, processing, or storage of Personal Data which took place prior to withdrawal of consent nor does it impact the lawfulness of such activities which are performed under a legal basis other than consent.

26. In the event that a court holds that the Software infringes any third party intellectual property right, we shall, in our sole discretion, do one of the following: (a) obtain for you the right to continue using the Software; (b) replace or modify the Software so that it becomes non-infringing while providing substantially equivalent performance; or (c) terminate this Agreement and provide to you a pro rata refund of the prepaid, unused fees.

27. ShipperHQ shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by ShipperHQ or by third-party providers, or because of other causes beyond ShipperHQ’s reasonable control, but ShipperHQ shall use reasonable efforts to provide advance notice in writing or by email of any scheduled service disruption. However, ShipperHQ does not warrant that the Services will be uninterrupted or error free; nor does it make any warranty as to the results that may be obtained from use of the Services. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES AND IMPLEMENTATION SERVICES ARE PROVIDED "AS IS" AND SHIPPERHQ DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

28. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. This Agreement shall be governed by the laws of the State of Texas without regard to its conflict of laws provisions, and the parties herein expressly agree that the sole venue for any legal action between them arising under or relating to this Service Agreement shall be filed in and resolved by a federal or state court in the State of Texas, County of Travis, and the parties further consent and agree to the exercise of personal jurisdiction over them by such courts.

Last Updated: August 5th, 2019

 

This AI and Data Usage Policy ("Policy") describes how ShipperHQ (Zowta, LLC d/b/a ShipperHQ, "ShipperHQ", "we", "us") uses artificial intelligence (AI) and machine learning (ML) technologies in the provision of our shipping rate management and related services (the "Service"), and how we use Client and Customer data in connection with those technologies.

This Policy applies to all Clients who use the Service and forms part of the End User License Agreement ("Agreement") between ShipperHQ and Client. Defined terms used in this Policy have the same meaning as in the Agreement and the ShipperHQ Privacy Policy, unless otherwise stated.

This Policy governs external use of data by ShipperHQ. Internal data governance and operational procedures are addressed in ShipperHQ's internal policies and are outside the scope of this document.

1. AI Features — What We Do

1.1 AI-Powered Features

ShipperHQ uses artificial intelligence and machine learning to power certain features within the Service including but not limited to:

  • Shipping Audit: AI-assisted review of Client's shipping activity to surface opportunities for cost reduction and service improvement.
  • Rule & Policy Intelligence: AI-generated recommendations to assist Clients in refining their shipping rules and policies.
  • Performance Benchmarking: Contextual analysis of Client's shipping performance using industry reference data derived from ShipperHQ's aggregated, anonymized dataset.
1.2 AI Technology Partner

To power certain AI features, ShipperHQ uses a large language model developed by our approved AI Sub-processor ("AI Sub-processor"). When AI-powered features are used, relevant shipping data (as described in Section 3) may be processed by our AI Sub-processor's systems as a sub-processor of ShipperHQ. Our AI Sub-processor processes this data solely to provide the Service to ShipperHQ and its Clients. ShipperHQ's agreement with our AI Sub-processor expressly prohibits our AI Sub-processor from using ShipperHQ Client data to train its general-purpose AI models. ShipperHQ transmits only the minimum data necessary to generate the requested analysis or recommendation, and does not transmit raw Customer personal details (names, email addresses, phone numbers, or payment information) to our AI Sub-processor.

1.3 AI Risk Classification

ShipperHQ has assessed its AI use against the risk categories established by the EU AI Act (Regulation (EU) 2024/1689) and applicable guidance. ShipperHQ's AI use is classified as lower-risk based on the following assessment:

  • ShipperHQ's AI systems are not used for the High-Risk purposes listed in Annex III of the EU AI Act (such as biometric identification, critical infrastructure, employment decisions, or access to essential public services).
  • AI-generated recommendations are advisory only and do not automatically implement changes to Client's shipping configuration without human review and approval (see Section 5).
  • No profiling of natural persons for purposes that produce legal or similarly significant effects is performed.

Notwithstanding the above, ShipperHQ is committed to transparency about its AI use as required by the EU AI Act transparency obligations (applicable from August 2026) and other applicable regulations.

2. Data Used in AI Processing

2.1 Client Data Used for AI Features

When a Client uses AI-powered features, the following categories of data may be processed by ShipperHQ's AI systems:

  • Shipping transaction data: historical and real-time shipment records, including origin and destination (city/region level), package dimensions and weight, carrier and service level selected, rates quoted, rates charged, and delivery performance data.
  • Order metadata: order values, product identifiers, and order frequency patterns.
  • Carrier configuration data: carrier accounts configured in the Service, negotiated rate structures (where provided by Client), and service level preferences.

ShipperHQ does not use the following data categories in AI processing: individual Customer names or contact details, payment information, precise individual residential addresses (only city/region level is used for analysis), or any special categories of personal data.

2.2 Data Submitted to Our AI Sub-processor

When our AI Sub-processor is used to process Client data, ShipperHQ transmits only the minimum data necessary to generate the requested analysis or recommendation. ShipperHQ does not transmit raw Customer personal details (names, email addresses, phone numbers, or payment information) to our AI Sub-processor. Shipping data submitted is processed by our AI Sub-processor under its Data Processing Agreement with ShipperHQ, which includes standard contractual safeguards. Our AI Sub-processor does not use ShipperHQ Client data to train its general-purpose AI models.

2.3 Data Architecture — Rates Data and Intelligence Layer

ShipperHQ maintains a separation between:

  • The core rates engine: which processes live carrier API requests, rate table lookups, and real-time shipping rate calculations for Client platforms. This layer handles rate data in real time and does not feed raw carrier rate responses into AI systems.
  • The intelligence layer: which anonymizes and aggregates historical transaction data for analysis, benchmarking, audit, and AI model improvement purposes.

Client's raw, identifiable transaction data in the rates engine is not directly accessible to the intelligence layer without an intermediate anonymization and aggregation step. This is both an architectural design principle and a compliance requirement: raw Customer Personal Data from any individual Client is anonymized and aggregated before it is combined with data from other Clients for benchmarking, AI model improvement, or any cross-client analytical purpose. No cross-client aggregation takes place at the level of identifiable personal data. Only once data has been irreversibly anonymized such that it cannot reasonably be linked to any individual Client, Customer, or natural person does it enter the shared intelligence layer.

3. Anonymized and Aggregated Data

3.1 ShipperHQ's Right to Use Aggregated Data

Client acknowledges and agrees that ShipperHQ may collect, anonymize, and aggregate Client's shipping transaction data and use such anonymized aggregated data for purposes including but not limited to:

  • Improving the accuracy and performance of ShipperHQ's optimization algorithms and AI Services.
  • Improving ShipperHQ's proprietary AI and ML Services.
  • Generating aggregate industry insights, reports, and analytics, which may be shared with Clients or third parties in aggregated, non-attributable form.
3.2 Anonymization Standard

Data is considered anonymized for the purposes of this Policy where it has been processed in such a way that it cannot reasonably be used to identify any individual Client, Customer, or natural person, taking into account all means reasonably likely to be used. Anonymized data is not Personal Data for the purposes of applicable Data Protection Law and is not subject to the restrictions on processing of Personal Data in this Policy or the Privacy Policy.

3.3 Raw Data Retention

Raw (non-anonymized) Customer Personal Data is retained for a maximum of 12 months from the date of collection, after which it is either deleted or irreversibly anonymized to aggregated form. This period reflects the balance between AI model quality, audit capability, and privacy risk minimization. Aggregated anonymized data derived from Client data may be retained by ShipperHQ indefinitely.

3.4 Client Ownership of Input Data

Client retains ownership of its raw input data (including Customer Order Information) submitted to the Service. ShipperHQ's rights to use Client's data are limited to the purposes described in this Policy and the Privacy Policy. ShipperHQ does not sell Client's raw data to third parties.

3.5 ShipperHQ Ownership of Derived Insights

ShipperHQ owns all aggregated, anonymized data and all AI model outputs, benchmarks, insights, and analytics derived from processing Client data in accordance with this Policy. Nothing in this Policy prevents ShipperHQ from using such derived data to improve the Service, develop new products, or provide industry benchmarking to other clients on an aggregated basis.

4. Human Oversight — No Automated Decision-Making

ShipperHQ's AI systems generate recommendations and analysis. All AI-generated recommendations are advisory only. No shipping configuration changes, policy amendments, or carrier selection decisions are automatically implemented without a human decision by an authorized representative of Client.

In particular:

  • Shipping audit reports produced by ShipperHQ contain findings and recommendations, not automatic changes. Client is solely responsible for deciding whether to implement any recommended policy change.
  • Rule optimization suggestions are presented to Client administrators for review and approval before taking effect.
  • Carrier recommendations and policy changes are approved by Client personnel before being applied to Client's live shipping configuration.

This human-in-the-loop requirement is fundamental to ShipperHQ's approach to responsible AI deployment and to its classification as a lower-risk AI system under the EU AI Act.

5. AI Output — Accuracy and Limitations

5.1 ShipperHQ's AI systems are designed to provide accurate and useful analysis. However, Client acknowledges and agrees that:

  • AI-generated recommendations are based on historical data, carrier rate information available to ShipperHQ, and statistical modeling, and do not constitute guaranteed outcomes.
  • Carrier rates displayed or recommended by the Service are derived from carrier APIs, rate tables, and ShipperHQ's models, and may differ from rates actually charged by carriers due to Client-specific negotiated contracts, dimensional weight adjustments, fuel surcharges, accessorial charges, or other carrier-side factors not known to ShipperHQ.
  • Shipping policy changes recommended by ShipperHQ are based on projected outcomes using available data, and actual results following implementation of any recommended change may differ from projected results.
  • ShipperHQ makes no warranty as to specific profitability outcomes, cost savings, or carrier performance improvements resulting from implementing AI-generated recommendations.

5.2 Client is solely responsible for evaluating AI-generated recommendations and for all decisions to implement changes to its shipping configuration or policies. ShipperHQ accepts no liability for the outcome of decisions made by Client in reliance on AI-generated recommendations.

6. Restrictions on Data Use

ShipperHQ shall not use Client's data (whether raw or aggregated) for the following purposes without Client's explicit written consent:

  • Training our AI Sub-processor's general-purpose AI models or any third-party AI model not controlled by ShipperHQ.
  • Selling, licensing, or otherwise making available Client's raw or identifiable data to third parties for commercial purposes.
  • Profiling individual Clients or Customers in a manner that produces legal or similarly significant effects.
  • Using Client's data for purposes materially different from those described in this Policy and the Privacy Policy.

ShipperHQ shall not permit our AI Sub-processor or any other sub-processor to use Client data for purposes beyond the provision of the Service to ShipperHQ. ShipperHQ's contract with our AI Sub-processor expressly prohibits the use of ShipperHQ Client data to train our AI Sub-processor's general models.

7. Output Ownership

7.1 AI-generated analysis, reports, and recommendations produced by the Service in response to Client's use of AI-powered features are owned by Client for Client's own use. ShipperHQ does not claim ownership of the specific outputs generated for Client.

7.2 ShipperHQ retains the right to use anonymized and aggregated learnings derived from AI processing across its client base (not the specific outputs generated for any individual Client) for the purposes described in Section 3 of this Policy.

8. Client Access and Download Rights

The Service provides Client with access to data and outputs across three distinct tiers. Client's rights and access differ by tier:

Tier 1 — Outputs and Results (Client's Property)
Reports, analysis documents, shipping audit findings, policy recommendations, and other results generated by the Service in response to Client's use of AI-powered features are owned by Client (see Section 7.1). These outputs are the core deliverables of the Service. ShipperHQ does not claim ownership of Client-specific outputs.

Tier 2 — Raw Customer Personal Data (DSR Compliance Access Only)
Customer Personal Data submitted to the Service (including shipping addresses and recipient contact details) is owned by Client (see Section 3.4) but is not available for general ad-hoc browse or download as an operational feature of the Service. Client's access to this data is provided solely for the purpose of fulfilling Data Subject rights requests (access, portability, correction, deletion) made by Client's Customers under applicable Data Protection Law. Upon termination of the Agreement, Client may request a full export of its Customer Personal Data in a portable, machine-readable format. During the Agreement term, Client may submit Data Subject rights requests to ShipperHQ, which ShipperHQ will facilitate in accordance with applicable laws and this Agreement.

For the avoidance of doubt: the right of Client's Customers (as data subjects) to request access to, correction of, or deletion of their Personal Data is a legal right exercised through the Client-ShipperHQ Data Subject rights mechanism, not a self-service feature of the ShipperHQ platform.

Tier 3 — Algorithms, Models, Benchmarks, and Intelligence (ShipperHQ's Exclusive Property)
ShipperHQ's proprietary algorithms, machine learning models, intelligence systems, carrier benchmarking data, and all derived analytical insights are ShipperHQ's exclusive intellectual property (see Section 3.5). Client has no right of access to, download of, or claim over any of these assets, whether during or after the subscription term. The Service is licensed to Client as a platform; Client acquires no rights in the underlying technology, models, or intelligence that power the Service.

9. EU AI Act Compliance

ShipperHQ is preparing for compliance with the EU AI Act (Regulation (EU) 2024/1689), which enters into full application in August 2026. As a deployer of AI systems, ShipperHQ will comply with applicable obligations under this Act.

10. International Transfers of AI-Processed Data

When Client data is submitted to our AI Sub-processor for AI processing, such data may be processed in the United States. Our AI Sub-processor processes this data as a sub-processor of ShipperHQ, subject to ShipperHQ's Data Processing Agreement with our AI Sub-processor, which includes Standard Contractual Clauses or equivalent transfer mechanisms. ShipperHQ's primary transfer mechanism for EEA data to its US sub-processors is enrollment in the EU-US Data Privacy Framework (DPF), with SCCs maintained as a fallback mechanism.

11. Changes to This Policy

ShipperHQ may update this Policy from time to time to reflect changes in our AI capabilities, applicable law, or our data practices. Updated versions will be posted on ShipperHQ's website with a revised effective date. Continued use of the Service after the effective date of an updated Policy constitutes acceptance of the updated terms.

The date of the most recent update to this Policy is indicated on the document.

If you have questions about this Policy or ShipperHQ's AI practices, please contact us using the contact information in the Questions and Contacts section of the Privacy Policy.

ShipperHQ AI and Data Usage Policy v1.0
Last Updated: March 2026