3.1. Presentation of products and opportunities by club members with consumer or distributor status.

3.1.1. Information provided by a club member regarding cooperation opportunities with the company and the related rights and obligations must be accurate, complete, and consistent with the company’s official materials. A distributor must not present facts that cannot be substantiated or make promises that cannot be fulfilled. When describing opportunities, it must be clearly stated that income is not guaranteed and depends on personal effort, time, market factors, and compliance with company rules. A distributor must not present misleading or false information when promoting products.

3.1.2. A club member undertakes not to use unfair, deceptive, or misleading recruiting practices.

3.1.3. A club member undertakes not to make misleading, exaggerated, or false statements about products and to describe products only using terms established in the company’s official materials. It is prohibited to attribute therapeutic, preventive, or other medical properties to products, or to create the impression that products are intended for diagnosis, treatment, or prevention of diseases.

3.1.4. It is prohibited to publish materials that claim the possibility of treating or preventing diseases by using food supplements, or to provide direct or indirect examples of cures, reduced disease risks, or replacing medical therapy with product-use recommendations.

3.1.5. A club member is prohibited from providing incorrect or incomplete information about the quality, purpose, availability, payment terms, or delivery of company products. All descriptions of product properties must comply with the company’s approved materials and applicable advertising laws for food supplements.

3.1.6. A club member is prohibited from repackaging, changing packaging or labels, or otherwise modifying products supplied by the company.

3.1.7. A club member must refrain from using inappropriate comparisons with other companies that may mislead consumers. Only neutral, verifiable comparisons based on objective criteria (e.g., composition, package volume) and supported by sources are acceptable. Club members must not directly or indirectly communicate false information about any company or product.

3.1.8. A Distributor may not disclose their personal earnings or present their lifestyle as evidence of typical results. Only aggregated and anonymized data officially published by the company may be used (for example, statistical ranges), provided that such data is accompanied by a clear statement that it represents general statistics, does not constitute a promise of income, and that actual results may vary significantly from person to person. Personal examples, projections, and comparisons are prohibited.

3.1.9. When offering products or business opportunities, it is prohibited to advertise or promote any other company, organization, or individual unrelated to the company. A club member may not use literary sources or other materials that advertise any religious, political, commercial, or public organizations, or imply any association between Coral Club and another organization, without company approval.

3.1.10. It is prohibited to use tools, channels, or mechanisms intended for hiring employees (specialized job sites, online or mass media job postings, etc.) for the purpose of attracting potential consumers or distributor partners.

3.1.11. A club member who uses electronic or other testing tools when communicating with clients must, when advertising or describing the procedure, use the designation “client testing” and clearly state that such procedures are not medical services and do not replace consultation with a physician. The terms “diagnosis,” “scan,” “treatment,” and other designations of medical procedures are prohibited.

3.1.12. A club member is prohibited from making diagnoses or giving therapeutic recommendations. The result of testing (using electronic or other tools) may be described as a “consultant’s recommendation,” and it must be indicated that health-related questions should be addressed to a qualified specialist.

3.2. Advertising and business promotion.

3.2.1. In their activities, a distributor uses only those advertising and informational materials that are distributed and/or approved by the company and complies with all legal requirements for advertising food supplements and professional communication.

3.2.2. A club member may not, without the company’s permission, fully or partially copy, reprint, edit, supplement, or alter any printed, audio, or video materials prepared by the company. All informational and advertising materials issued or approved by the company are protected by copyright—registered or unregistered—and are considered the property of the company or their authors.

3.2.3. The use of company logos, trademarks, or names on business cards or other personal promotional materials of a club member must fully comply with the recommendations published on the company website.

3.2.4. A club member must not advertise or mention Coral Club product names, trademarks, or designations in any video or audio recording produced by them, on their behalf, or at their instruction, except where the use of such recording is approved by the company.

3.2.5. A club member is prohibited from broadcasting any recording on television that relates to, mentions, advertises, or in any way directly or indirectly promotes the awareness of product names, materials, business opportunities, or the company’s methods of operation without the company’s written consent. Otherwise, the company reserves the right to seek recovery through legal proceedings for reputational, direct, and indirect damages.

3.2.6. Club members are prohibited from advertising Coral Club products or services to expand their customer base via channels where personal contact is absent, unless such advertising is approved by the company or complies with applicable law. It is prohibited to use such channels to describe the Compensation Plan or motivate others to become distributors without the company’s written permission.

3.2.7. If media outlets request an interview or information from a club member regarding the company’s products or activities, the member must recommend that the journalist contact the company directly and inform the company’s PR department about the request at pr@coral-club.com. We value the interest shown in our products and business opportunities, but only the company may provide interviews and advertise Coral Club and its products.

3.2.8. When conducting online advertising activities, a club member must follow all company rules and policies regarding advertising. Guidance on using this communication channel for advertising is provided in SECTION 4 of these Rules.

3.2.9. In addition to company policies, when advertising products and offering business opportunities, a club member must strictly comply with the laws of the country in which they operate, as well as any other applicable legislation. The club member is responsible for determining which laws apply and how they relate to their activities.

3.2.10. The use of trade names, trademarks, company symbols, and their facsimiles is permitted only in strict accordance with branding guidelines. Logos and other intellectual and industrial property containing the Coral Club name, various trademarks, brand names, and service marks appearing on company products and services and on various types of labels are the exclusive property of the company. Coral Club or its subsidiaries may revoke permission to use the above at any time at their discretion.

3.2.11. Distributors may use company advertising materials solely for the purpose of conducting activities as Coral Club distributors.

3.3. Promotional materials for business development not produced by the company:

• Must strictly comply with the Coral Club Brand Book and all other written rules and guidelines.

• Must not be used as an independent source of profit or replace the distribution of company products, but serve as auxiliary tools within approved activities.

• Must fully comply with the laws of the distribution country, including advertising rules for food supplements and the prohibition of guaranteed income claims.

3.3.1. The sale, display, and advertising of materials not produced by the company at events organized by distributors or the company require approval from the event organizers.

3.3.2. The retail price of materials not produced by the company for club members must correspond to existing prices for comparable promotional materials.

3.4. Distributor interaction with the structure.

3.4.1. The distributor is responsible for providing informational support to consumers within their downline regarding product use strictly within the company’s official materials; promotions, new products, the discount program, company rules, and order placement. Individual health questions must be addressed to medical professionals; the distributor does not provide medical advice.

3.4.2. A distributor may not participate in or interfere with the distributorship activities of their downline distributors if they object. Interaction must be based on mutual respect and partnership.

3.4.3. Distributors are encouraged to report, through approved feedback channels, any violations of company rules occurring within their distributor network.

3.4.4. Mass registration of new club members without subsequent order placement is considered an ethical violation and may lead to measures being taken by the company against the distributor.

3.5. Distributor responsibility for training structure members.

One of the distributor’s activities is to train club members, promote principles of well-being, ethical interaction, and goodwill, and foster relationships based on the company’s values: peace, kindness, respect, and unity on a non-commercial basis.

3.5.1. A distributor’s responsibilities include training consumers and downline distributors in:

• the purpose and characteristics of the products, as described in the company’s official materials, without medical claims or comparisons;

• the Compensation Plan, stating that income is not guaranteed and depends on numerous factors;

• the rules governing distributor activities;

• business tools recommended by the company.

3.5.2. Training, knowledge transfer, and practical experience sharing must be provided free of charge and on a non-commercial basis. Distributors are not permitted to conduct paid trainings, workshops, marathons, or coaching sessions, whether online or in person.

3.5.3. With approval from the company’s Ethics Committee, a distributor may charge a fee for educational events if necessary to cover additional expenses (venue rental, preparation of informational materials for participants, coffee breaks, etc.).

3.5.3.1. In such cases, the distributor contacts the company to organize receipt of participation fees. If the funds received exceed the event organization costs, the surplus must be returned to the company for safekeeping and may be used for the distributor’s next event.

3.5.4. The company may apply measures provided in SECTION 10 of the company rules to distributors who conduct paid training or other events in violation of the established rules.