CONSUMER PROTECTION (DIRECT SELLING)
COMPLIANCE STATEMENT

1. LEGAL FRAMEWORK DECLARATION

STCNET Private Limited operates as a Direct Selling Entity (“DSE”) and an E-
Commerce Operator and conducts its business in accordance with the
applicable provisions of the following laws and regulations, as amended from
time to time:

The Consumer Protection (Direct Selling) Rules, 2021 regulate the conduct of
Direct Selling Entities and Direct Sellers operating in India. The Consumer
Protection (Direct Selling) Amendment Rules, 2023 further clarified the
regulatory framework, including the concept of a network of sellers.

These Rules broadly apply to:

• Direct Selling Entities;
• Direct Sellers;
• Sale of goods and services through direct selling;
• Networks of sellers;
• Consumer protection; and
• Prevention of unfair trade practices, pyramid schemes and money
  circulation schemes.

2. SELF-DECLARATION OF COMPLIANCE

In accordance with the applicable provisions of the Consumer Protection (Direct
Selling) Rules, 2021, STCNET Private Limited declares that:

• it operates a product-centric direct selling business;
• it does not promote or operate any Pyramid Scheme or Money Circulation
  Scheme;
• it maintains policies and operating procedures intended to comply with
  applicable direct selling laws; and
• it shall review and update such policies whenever required by changes in
  law or regulatory requirements.

The Company shall maintain such declarations, certifications and compliance
records as may be required under applicable law.

3. PROHIBITION OF PYRAMID & MONEY
CIRCULATION SCHEMES

STCNET maintains a strict zero-tolerance policy against Pyramid Schemes, Money
Circulation Schemes and any similar prohibited business models.

3.1 Pyramid Scheme Prohibition

STCNET does not promote, operate, participate in or encourage any Pyramid
Scheme under the guise of direct selling.

No person earns any income merely because another person joins, registers,
enrols or occupies a position within a network.

3.2 Money Circulation Scheme Prohibition

STCNET does not promote or participate in any Money Circulation Scheme or any
arrangement designed primarily to generate income through enrolment rather
than genuine product or service sales.

3.3 STCNET Business Position

STCNET follows a Product Sale First business philosophy.

Accordingly:

• Registration alone does not generate income.
• Joining alone does not generate income.
• Recruitment alone does not generate income.
• Referral alone does not generate income.
• Network size alone does not generate income.
• Position or rank alone does not generate income.

Any commission, incentive or payout, where applicable, is linked only to eligible
completed product or service sales and remains subject to Company policy,
verification, refund and return adjustments, statutory deductions and
compliance review.

4. PROHIBITION OF UNFAIR TRADE PRACTICES

STCNET is committed to conducting its business fairly, transparently and
ethically.

The Company and its Promoters / Referrers shall not:

• make false or misleading product representations;
• make false or misleading income representations;
• engage in fraudulent, deceptive or misleading sales practices;
• use coercion, harassment or undue influence;
• collect any joining fee, entry fee or compulsory subscription;
• create fake customer reviews or testimonials;
• impersonate consumers;
• conceal material product information; or
• engage in any practice prohibited under applicable consumer protection
  laws.

The Company expects every Promoter / Referrer to comply with the published
Promoter / Referrer Code of Conduct.

5. STATE COMPLIANCE ACKNOWLEDGEMENT

STCNET acknowledges that State Governments may establish mechanisms for
monitoring, supervising or regulating Direct Selling activities within their
respective jurisdictions.

Accordingly:

• the Company shall cooperate with competent authorities wherever
  required by law;
• where applicable, the Company shall comply with State-specific enrolment,
  registration or monitoring requirements; and
• the Company shall maintain appropriate records required under
  applicable State laws and regulations.

For State-specific compliance matters, the Company’s designated Nodal Officer
may be contacted at:

nodal@stcnet.in

6. CONSUMER ASSISTANCE

Consumers are encouraged to first contact the Company’s Grievance Redressal
Officer for any complaint or service-related issue.

Where applicable and available under law, consumers may also avail themselves
of Government consumer grievance mechanisms, including the National
Consumer Helpline and other competent consumer dispute resolution forums.

The Company shall participate in Government consumer grievance or
convergence mechanisms wherever such participation is applicable or required
under law.

7. STCNET’S COMPLIANCE COMMITMENT

STCNET is committed to operating a transparent, product-centric and consumer-
focused business model.

The Company is guided by the following principles:

• Consumer protection first.
• Product sale before commission.
• No recruitment-based income.
• No compulsory purchases.
• No inventory loading.
• No guaranteed income.
• Fair pricing.
• Transparent grievance handling.
• Responsible marketing.
• Continuous legal and regulatory compliance.

8. RELATED POLICIES

This Policy should be read together with:

1. Legal Entity & Statutory Disclosures

2. Promoter / Referrer Code of Conduct

3. Compensation Structure & Commission Disclosure

4. Grievance Redressal & Consumer Complaints

5. Returns, Refunds & Cancellation

6. Pricing, Payments & Charges

7. Shipping, Delivery & Fulfilment

8. Privacy Policy

9. Terms & Conditions (Website Use)

10. Product / Service Regulatory Disclosures

11. Cookie & Tracking Consent Policy

12. No Income Guarantee Disclaimer

13. Compliance Index & Statutory Mapping

9. POLICY UPDATES

This Policy may be amended, revised or updated from time to time to reflect
changes in applicable laws, judicial decisions, Government notifications,
regulatory guidance or the Company’s compliance framework.

The latest version published on this website shall prevail.

End of Policy #2 – Consumer Protection (Direct Selling) Compliance

Statement