If any distributor of Coral Club identifies a violation of the company’s rules, they are required to appropriately inform the other participant about the relevant provisions of the company’s rules, offer assistance in correcting the violation, and explain the possible consequences of non-compliance. If the violation is not corrected or the actions continue, the distributor must report this to the company through the approved feedback form.

10.1. In the event that a Club Member violates the provisions and/or conditions of Coral Club’s written rules and instructions, the company may temporarily restrict access to distributor activities and apply one or more of the measures provided, in accordance with the company’s internal procedures and applicable legal requirements.

10.2. The company may set a probation period and require the distributor to correct the identified violations within a specified period.

10.3. The company may temporarily restrict the following actions:

• Order placement,
• Recruiting new club members,
• Participation in the company’s privilege programs,
• Speaking at or attending company events for a certain period or until certain conditions are met.

10.4. Temporarily suspend rank advancement in accordance with the Compensation Plan until the violations are corrected.

10.5. Temporarily suspend the distributor’s participation in achievement recognition programs (such as the mention of new ranks at events or in corporate communications) until the situation is resolved.

10.6. Temporarily restrict the accrual or use of bonus discounts until the violations are corrected and the established conditions are met.

10.7. The following violations may result in disciplinary measures, taking into account the nature, severity, frequency of the violations, and their potential impact on the company’s business community:

• Re-signing – from 500 to 10,000 units, depending on the circumstances and number of instances;
• Violation of promotion rules – from 500 to 5,000 units, considering the severity of the violation;
• Improper invitations (recruiting) – from 500 to 5,000 units, depending on repetition and context;
• Dumping – from 500 to 10,000 units, based on the scale and consequences of the violation.