So they're getting a 10% merchant commission, a 15% discount on the sale, a 5% referral bonus, and a 10% SP allocation, which can be converted into money. So all in all, they're actually ending up with a total of 40% below market value off each purchase. Anything above that would give them a profit, and likely lower the market value as well.
So the question is, is it wrong, or is it just business? And should it be reneged and/or regulated.
Well, the thing with it is that there's no information about how one can become a merchant. If no one can become a merchant besides SmartMonsters and a couple of other services, no one can compete.
As a sidenote, the +75 packs for buying 500 gives a discount of a bit less than 15%. They could get packs for about $1.30 this way, which is a 35% discount.
Sorry I didn't listen to you. I tend to like facts and figures. I am pretty sure though, that the merchant terms have been changed now, due to this misunderstanding with a merchant that stands to show that this could happen again.