Terms of Service

The terms governing your use of VirtualBackroom.ai

Last updated: June 2026

1. Acceptance of Terms

These Terms of Service (the "Terms") are provided in draft for transparency and will govern your use of VirtualBackroom.ai (the "Service") once finalized following legal review.

The Service is operated by Koala Tea with Neel LLC (doing business as Koalat.ai), 2520 Wolfe Drive, Woodridge, IL 60517, United States ("VirtualBackroom.ai", "we", "us", or "our"). VirtualBackroom.ai is a product offered by Koala Tea with Neel LLC.

When finalized, by accessing or using the Service you will agree to be bound by these Terms. If you are using the Service on behalf of an organization, you represent that you have authority to bind that organization. If you do not agree to these Terms, do not use the Service.

2. The Service

VirtualBackroom.ai is an AI-powered platform that provides regulatory compliance tooling for quality and regulatory professionals, including audit simulations, gap analysis, FDA enforcement analytics, and multi-standard guidance.

Informational only. The Service is provided for training and advisory purposes and is not a substitute for licensed regulatory, legal, or professional advice. Outputs may be incomplete or inaccurate and must be independently verified before any compliance decision.

3. Accounts & Access

  • The Service offers public self-service signup (including a free tier); you create an account by signing in with a supported identity provider such as Google.
  • You are responsible for safeguarding your account credentials and for all activity under your account.
  • You must provide accurate registration information and keep it current.
  • You must be of legal age to form a binding contract to use the Service.
  • We may suspend or revoke access for violations of these Terms or for security reasons.

4. Subscriptions & Billing

The Service offers a free tier and paid subscription tiers. Current published pricing:

  • Free — $0/month. Includes a limited monthly allowance of AI regulatory scans, regulatory radar browsing, and the Compliance Exposure diagnostic.
  • Pro — $99/month or $1,069/year ("Founding Member — rate locked").
  • Premium — $399/month or $4,309/year ("Founding Member — rate locked").
  • Enterprise — custom; arranged via a QMS.coach managed-service consult.
Automatic renewal. Paid subscriptions renew automatically until you cancel. You are charged in advance for each billing period (monthly or annual, depending on the plan you select) through our payment processor, Stripe, and by subscribing you authorize these recurring charges until you cancel. You can cancel at any time from the Manage Subscription billing portal; cancellation stops future renewals, and your access continues until the end of the period you have already paid for.
  • "Founding Member — rate locked" means the rate in effect at the time of your subscription will be honored for the duration of your continuous active subscription, subject to confirmation in writing.
  • Refunds. Except where required by applicable law, all fees are non-refundable, including for partial subscription periods and unused time.
  • We may change pricing prospectively; changes will not affect a rate-locked subscription while it remains continuously active.
  • Applicable taxes may be added to the amounts charged.

Billing is handled by Stripe under their terms; we do not store full payment card details on our servers.

5. Acceptable Use

You agree not to:

  • Use the Service for any unlawful purpose or in violation of any applicable regulation.
  • Attempt to gain unauthorized access to the Service, other accounts, or our systems.
  • Reverse engineer, scrape, or resell the Service except as expressly permitted.
  • Upload malicious code or content that infringes the rights of others.
  • Misrepresent AI-generated output as independently verified regulatory or legal advice.

6. AI-Generated Output

The Service uses third-party AI providers to generate content. AI output:

  • May contain errors, omissions, or outdated information and is provided "as is".
  • Does not constitute legal, regulatory, medical, or professional advice.
  • Must be independently reviewed and verified by a qualified professional before use.
  • Remains your responsibility to validate against authoritative regulatory sources.

See our AI Boundaries page for details on capabilities and limitations.

7. Intellectual Property

  • The Service, including its software, design, and content, is owned by Koala Tea with Neel LLC (dba Koalat.ai) and protected by applicable IP laws.
  • You retain ownership of the documents and data you upload ("Your Content").
  • You grant us a limited license to process Your Content solely to provide the Service to you.
  • We do not sell Your Content, and we do not use it to train third-party AI models. See the Privacy Policy and Security pages.
  • Business customers who require one may request our Data Processing Agreement (DPA) covering our processing of personal data on their behalf.

8. Disclaimers & Limitation of Liability

Disclaimer of Warranties. The Service is provided "AS IS" and "AS AVAILABLE" without warranties of any kind, express or implied, including fitness for a particular purpose, accuracy, or non-infringement, to the fullest extent permitted by law.
Limitation of Liability. To the maximum extent permitted by law, VirtualBackroom.ai shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or for any loss arising from reliance on AI output or compliance decisions. Our total aggregate liability arising out of or relating to the Service shall not exceed the greater of (a) the fees you paid to us in the twelve (12) months preceding the event giving rise to the claim, or (b) US $100. [ Carve-outs to this cap (e.g., liability that cannot be limited by law) to be confirmed with counsel. ]

9. Termination, Changes & Governing Law

  • Termination. You may stop using the Service at any time. We may suspend or terminate access for breach of these Terms.
  • Changes to the Terms. We may update these Terms; material changes will be posted on this page with a revised "Last updated" date.
  • Governing Law & Venue. These Terms are governed by the laws of the State of Illinois, USA, without regard to its conflict-of-laws rules. The exclusive venue for any dispute is the state and federal courts located in DuPage County, Illinois, and you consent to their jurisdiction.

Continued use of the Service after changes take effect constitutes acceptance of the revised Terms.

Questions about these Terms?

Contact us with any questions about these Terms of Service.

Koala Tea with Neel LLC (dba Koalat.ai)
2520 Wolfe Drive, Woodridge, IL 60517, United States
neel@qms.coach

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