VCN INCOME DISCLOSURE STATEMENT
1. Purpose and Legal Foundation of this Policy
a. This Income Disclosure Statement and Anti-Misleading Representation Policy (“Policy”) has been adopted by Falcon Marketing Pvt. Ltd., operating under the brand name VCN (hereinafter referred to as the “Company”), in order to ensure full transparency, lawful business practices, and strict compliance with the regulatory framework governing direct selling operations in India.
b. The Company operates a product-centric direct selling model involving the distribution and sale of wellness products, nutraceuticals, health supplements and personal care products through a network of independent direct sellers. In conducting such business, the Company recognizes that representations regarding income potential, earnings opportunities, product benefits, and business growth must be communicated responsibly and must not mislead customers, prospective direct sellers, or the general public.
c. This Policy is therefore implemented in accordance with the Consumer Protection Act, 2019 and the Consumer Protection (Direct Selling) Rules, 2021, which require direct selling entities to ensure that no misleading, deceptive or exaggerated claims are made in connection with the direct selling business opportunity. The Policy further aims to safeguard consumers and prospective participants against unrealistic expectations, misrepresentations or inducements that may otherwise arise from unverified statements regarding financial outcomes or business success.
d. All direct sellers, employees, representatives, promoters, consultants and agents associated with the Company are required to adhere strictly to the provisions of this Policy.
2. Nature of the Company’s Direct Selling Business
a. The Company operates a direct selling model wherein revenue is generated through the legitimate sale and distribution of products to customers for personal consumption or retail sale. Participation in the Company’s direct selling business does not involve any compulsory joining fee, mandatory investment, or guaranteed income entitlement.
b. Individuals who participate as direct sellers may earn commissions or incentives in accordance with the Company’s approved compensation plan, which is based on
genuine product sales and lawful business activities. Earnings, if any, arise from actual product transactions, network performance where applicable, and adherence to the compensation structure officially published by the Company.
c. The Company does not operate any money circulation scheme, investment plan, profit-sharing arrangement, or financial return program. Participation in the Company’s business opportunity is not equivalent to employment, investment, franchise ownership or financial security.
3. No Guarantee of Income or Financial Returns
a. The Company expressly declares that it does not guarantee any level of income, profit, financial return, or business success to any person participating in the direct selling network. Earnings in the direct selling business depend on multiple factors including, but not limited to, individual effort, product demand, market conditions, compliance with company policies, customer engagement, lawful promotional practices, and time dedicated to business development.
b. Accordingly, no direct seller, employee, promoter or representative of the Company is authorised to represent that participation in the Company’s direct selling model will necessarily lead to financial success, stable income, lifestyle improvement, career advancement, or financial independence.
c. Any income examples, illustrations, testimonials, or hypothetical earnings scenarios must be presented strictly for explanatory purposes and shall not be construed as guarantees or assurances of actual earnings.
4. Mandatory Income Disclaimer for All Promotional Materials
The Company requires that whenever any Direct Seller or representative refers to income potential, earnings illustrations, or compensation plan explanations in presentations, seminars, social media posts, marketing materials, digital promotions, or public communications, such communication must clearly state that “income earned by Direct Sellers depends on individual effort, product sales, and market conditions and is not guaranteed.” Failure to include such disclosure may constitute a violation of Company policy and applicable consumer protection laws.
5. Income Variability and Individual Effort
a. Income earned by direct sellers may vary significantly depending on individual business activity, market engagement, customer satisfaction, product sales volume, compliance with company guidelines, and adherence to lawful promotional practices.
b. Some direct sellers may choose to engage in the business occasionally or on a part-time basis, while others may devote substantial effort toward business development. As a result, earnings across the direct selling network may differ widely.
c. The Company therefore cautions all prospective participants to understand that the direct selling opportunity should be approached as a performance-based commercial activity rather than a guaranteed income source.
6. Prohibition on Misleading Income Claims
a. Direct sellers, employees, promoters and representatives are strictly prohibited from making any statements, representations or claims that could create unrealistic or misleading expectations regarding income potential.
b. Without limitation, the following types of statements shall be considered misleading and are strictly prohibited:
i. Any representation that participation in the Company’s business guarantees financial success, high income, rapid wealth creation, early retirement, passive income, or financial freedom.
ii. Any statement suggesting that individuals can earn large sums of money with little effort or within a short period of time.
iii. Any use of exaggerated lifestyle imagery, luxury depictions, or financial symbols intended to imply that such outcomes are typical or guaranteed for participants.
iv. Any misrepresentation regarding the number of participants earning a particular level of income.
v. Any statement implying that income is derived primarily from recruitment rather than legitimate product sales.
c. Such conduct shall constitute a violation of Company policy and may result in disciplinary action including suspension or termination of the direct seller relationship.
7. Social Media Promotion Controls
Direct Sellers shall exercise particular caution when promoting the Company’s business opportunity through digital platforms including social media channels, messaging applications, video platforms, websites, blogs, or other online forums. Direct Sellers must not publish or circulate income screenshots, bank balances, luxury lifestyle images, expensive vehicles, foreign travel photographs, or similar material that may create the impression that such outcomes are typical or guaranteed for participants in the Company’s business. Any online content that may reasonably create
unrealistic expectations of financial gain or misrepresent the nature of the direct selling opportunity shall be treated as a violation of this Policy. The Company reserves the right to require removal of such content and may initiate disciplinary action against any Direct Seller who engages in misleading digital promotion.
8. Responsible Presentation of the Business Opportunity
a. When presenting the Company’s direct selling opportunity to prospective participants, direct sellers and representatives must ensure that the business model is explained accurately and responsibly.
b. All discussions regarding the compensation plan must be accompanied by a clear explanation that commissions and incentives arise only from genuine product sales and lawful network activity. Prospective participants must be informed that earnings are neither guaranteed nor assured and that individual performance, compliance and effort play a critical role in determining potential outcomes.
c. Direct sellers must refrain from presenting hypothetical earnings examples in a manner that could mislead prospective participants into believing that such outcomes are typical or guaranteed.
9. Use of Testimonials and Success Stories
a. Testimonials or success stories may occasionally be shared by individuals who have achieved notable results within the Company’s business model. However, such testimonials must be presented responsibly and must include a clear clarification that individual results may vary.
b. Under no circumstances shall testimonials be used to imply that the achievements described are typical outcomes for all participants. Direct sellers must avoid using isolated success stories to create unrealistic expectations among prospective participants.
c. The Company reserves the right to review and approve promotional materials or presentations containing testimonials to ensure compliance with applicable laws and company policies.
10. Product Claim Compliance
a. Direct sellers and representatives must also exercise caution when making statements regarding the Company’s products. Health supplements, nutraceuticals and wellness products must be promoted strictly in accordance with regulatory guidelines and approved marketing materials.
b. No direct seller shall make unauthorised medical claims, therapeutic claims, disease treatment claims, or guaranteed health outcome claims regarding any product unless such claims are specifically authorised under applicable regulatory approvals.
c. Any misleading product representation may expose the Company to regulatory liability and shall therefore constitute a serious violation of this Policy.
11. Distributor Training Requirement
The Company may conduct training sessions, compliance workshops, or orientation programs to ensure that Direct Sellers understand and comply with the provisions of this Policy.
12. Typical Earnings Disclosure Requirement
The Company may publish a typical earnings disclosure from time to time reflecting statistical income distribution among Direct Sellers so that prospective participants can form realistic expectations. Such disclosures may be updated periodically based on verified internal data maintained by the Company.
13. Regulatory Reporting / Cooperation Clause
The Company shall cooperate with regulatory authorities and consumer protection agencies in investigating complaints relating to misleading income claims or unlawful promotional practices.
14. Monitoring and Enforcement
a. Direct Sellers participating in the Company’s business operate as independent participants and are not employees, agents, partners, or representatives authorised to legally bind the Company. Any representation, promise, or assurance made by a Direct Seller that is inconsistent with the Company’s officially published policies, compensation plan, or marketing guidelines shall be treated as an unauthorised act for which the Company shall not be responsible. Direct Sellers shall therefore exercise due diligence and adhere strictly to all policies issued by the Company in order to prevent consumer confusion or regulatory violations.
b. The Company may monitor promotional activities conducted by direct sellers, including presentations, social media communications, digital promotions, printed materials and public statements in order to ensure compliance with this Policy.
c. Where the Company determines that a direct seller or representative has engaged in misleading income representation or unauthorised promotional conduct, the Company may initiate disciplinary measures including warning notices, suspension of benefits,
termination of the direct seller registration, or other corrective actions as deemed appropriate.
15. Consumer Protection and Grievance Redressal
a. Any customer, direct seller, or member of the public who believes that misleading income claims or promotional misrepresentations have been made in connection with the Company’s business may report such concerns through the Company’s designated grievance redressal mechanism.
b. The Company shall investigate such complaints in accordance with its grievance handling procedures and take appropriate action where violations are confirmed.
16. Policy Amendments
The Company reserves the right to amend or update this Policy from time to time in order to reflect changes in law, regulatory requirements, or operational practices. The latest version of the Policy shall be published on the Company’s website and shall be binding upon all direct sellers and representatives.
17. Acknowledgement and Acceptance
All direct sellers and representatives of the Company shall be deemed to have read, understood and agreed to comply with the provisions of this Income Disclosure Statement and Anti-Misleading Representation Policy. Continued participation in the Company’s direct selling business constitutes acceptance of the terms contained herein.
VCN TYPICAL EARNINGS DISCLOSURE STATEMENT (TEDS)
1. This Typical Earnings Disclosure Statement (“TEDS”) is issued by Falcon Marketing Pvt. Ltd., operating under the brand name VCN (Vcare Network) (“Company”), in order to provide transparency regarding the potential earnings of individuals participating in the Company’s direct selling business. This disclosure is intended to assist prospective Direct Sellers, customers, and members of the public in forming a realistic understanding of the income potential associated with participation in the Company’s business model.
2. The Company operates a product-centric direct selling model in which income opportunities arise solely from the legitimate sale and distribution of the Company’s products and from incentives paid under the Company’s approved compensation plan. Participation in the Company’s direct selling opportunity does not involve any compulsory joining fee, investment scheme, financial contribution, or guaranteed return. Earnings are not assured and depend entirely upon individual effort, sales activity, customer demand, compliance with Company policies, and adherence to applicable laws and regulatory requirements.
3. The income earned by Direct Sellers may vary significantly depending upon several factors, including but not limited to the amount of time devoted to the business, personal sales performance, product demand within the market, the ability to build and maintain a customer base, adherence to the Company’s compensation plan, and compliance with all applicable regulatory and operational guidelines. Some Direct Sellers may choose to participate in the business only occasionally or as a part-time activity, while others may pursue the opportunity more actively. Consequently, the earnings of Direct Sellers may differ widely and there is no guarantee that any participant will earn any particular level of income.
4. The Company emphasises that participation in the VCN direct selling business should not be interpreted as a promise or assurance of income, employment, financial stability, or business success. Any earnings that may be generated are entirely dependent upon lawful product sales and genuine business activity. The Company strictly prohibits any representation suggesting that income can be earned primarily through the recruitment of new participants or through activities that do not involve genuine product sales.
5. For the purpose of promoting transparency and compliance with applicable consumer protection regulations, the Company may from time to time compile internal statistical information regarding the earnings of Direct Sellers across its network. Such information may include average earnings, median earnings, and the distribution of income across different categories of participants. Where the Company publishes such statistical information, it shall be based on verified internal records and shall be presented solely for illustrative and informational purposes.
6. Prospective participants should carefully evaluate their personal circumstances, available time, marketing capabilities, and willingness to undertake genuine product sales activities before deciding to participate in the Company’s business opportunity. Individuals are encouraged to treat the VCN direct selling business as a commercial activity that requires effort, discipline, and compliance with applicable rules rather than as a guaranteed or passive source of income.
7. The Company also emphasises that any testimonials, success stories, or examples of individual achievements presented by Direct Sellers or representatives must not be interpreted as typical or guaranteed outcomes. Individual results may vary considerably, and success achieved by certain participants may not be representative of the experience of the majority of Direct Sellers.
8. Any person who receives representations regarding income potential that appear exaggerated, misleading, or inconsistent with this disclosure is encouraged to report such concerns to the Company through its designated grievance redressal mechanism. The Company treats misleading income claims as a serious violation of its policies and may initiate disciplinary action against any Direct Seller who engages in such conduct.
9. This Typical Earnings Disclosure Statement should be read together with the VCN Income Disclosure Statement and Anti-Misleading Representation Policy, the Direct Seller Agreement, and the Company’s other policies governing lawful direct selling activities. By participating in the Company’s direct selling business, Direct Sellers acknowledge that they have read and understood these disclosures and agree to comply with the standards and obligations set forth therein.
10. The Company reserves the right to update or revise this Typical Earnings Disclosure Statement from time to time in order to reflect changes in law, regulatory guidance, or operational practices.
VCN INCOME CLAIM GUIDELINES FOR DIRECT SELLERS
(Social Media & Business Presentation Rules)
This document, titled “VCN Income Claim Guidelines for Direct Sellers (Social Media & Presentation Rules)” (“Guidelines”) has been issued by Falcon Marketing Pvt. Ltd., operating under the brand name VCN (Vcare Network) (hereinafter referred to as the
“Company”), in order to ensure that all Direct Sellers promote the Company’s business opportunity in a lawful, transparent, and responsible manner.
The Company recognises that the direct selling model depends significantly on personal presentations, digital communication, and online promotion conducted by independent Direct Sellers. In the absence of clear rules governing such promotional activities, there exists a risk that exaggerated, misleading, or unlawful claims may be made regarding the potential income opportunity associated with the Company’s business. Such claims may create unrealistic expectations among prospective participants and may expose the Company as well as the Direct Sellers involved to regulatory scrutiny or legal consequences.
These Guidelines are therefore intended to establish clear standards governing how the VCN business opportunity may be presented in meetings, training sessions, social media platforms, online advertisements, public communications, and all other promotional contexts.
1. Responsible Representation of the VCN Business Opportunity
a. Direct Sellers must ensure that all explanations of the Company’s business opportunity are accurate, balanced, and consistent with the Company’s official policies and compensation plan. The VCN direct selling business must always be presented as a product-centric commercial activity in which income is derived from genuine product sales and legitimate network development activities permitted under the Company’s compensation structure.
b. Direct Sellers must clearly communicate that participation in the Company’s business does not guarantee income, financial success, or lifestyle improvements. Prospective participants must be informed that earnings, if any, depend on individual effort, sales activity, market demand, customer engagement, compliance with Company policies, and adherence to lawful marketing practices.
c. Any statement that may reasonably create the impression that financial success is guaranteed or typical shall be treated as a violation of Company policy.
2. Mandatory Income Disclosure During Business Presentations
a. Whenever a Direct Seller explains the Company’s compensation plan, potential commissions, or earnings illustrations during meetings, seminars, training sessions, webinars, online presentations, or personal discussions with prospective participants, the Direct Seller must clearly disclose that income earned by Direct Sellers depends on individual effort, product sales, customer demand, and compliance with Company policies and is not guaranteed.
b. Direct Sellers must refrain from presenting hypothetical earnings examples in a manner that may lead prospective participants to believe that such results are typical or assured outcomes. Any numerical examples used to explain the
compensation plan must be clearly described as illustrative scenarios only and must not be presented as projections or promises of actual earnings.
3. Restrictions on Social Media Income Promotion
a. Direct Sellers frequently utilise digital platforms such as Instagram, Facebook, YouTube, WhatsApp, Telegram, LinkedIn, blogs, and other online channels to promote the Company’s products and business opportunity. While the Company encourages lawful digital marketing activities, such promotions must comply strictly with these Guidelines.
b. Direct Sellers must not publish, circulate, or display content that may reasonably create unrealistic expectations of income potential. This includes, but is not limited to, posting screenshots of bank balances, commission statements, luxury lifestyle imagery, expensive vehicles, foreign travel photographs, large cash displays, or similar material that may imply that participation in the Company’s business will ordinarily lead to such outcomes.
c. Content that suggests rapid wealth creation, early retirement, financial independence within a short period of time, or passive income without effort is strictly prohibited. Social media content must not portray the VCN business opportunity as an investment scheme, employment opportunity, or guaranteed source of income.
d. The Company reserves the right to request removal of any digital content that may violate these Guidelines or create regulatory risk.
4. Use of Testimonials and Success Stories
a. Direct Sellers may occasionally share personal experiences or success stories relating to their participation in the Company’s business. However, such testimonials must be presented responsibly and must include an appropriate clarification that individual results may vary.
b. Direct Sellers must avoid presenting exceptional success stories as typical outcomes. Testimonials must not imply that most participants will achieve similar financial results. Any testimonial shared publicly must accurately reflect genuine personal experience and must not exaggerate earnings or business growth.
5. Prohibition on Recruitment-Based Income Representations
a. The Company strictly prohibits any representation suggesting that income within the VCN business is derived primarily from recruiting new participants into the network. Direct Sellers must emphasise that commissions and incentives arise from genuine product sales and lawful activities permitted under the Company’s compensation plan.
b. Statements implying that participants can earn substantial income merely by enrolling new members without genuine product sales are strictly prohibited and may constitute unlawful promotion of a money circulation scheme under applicable law.
6. Compliance with Product Advertising Regulations
a. In addition to income-related claims, Direct Sellers must exercise caution when describing the Company’s products. Health supplements, nutraceuticals, and wellness products must be promoted only in accordance with approved marketing materials and applicable regulatory guidelines.
b. Direct Sellers must not make unauthorised medical claims, therapeutic claims, disease treatment claims, or guaranteed health outcome claims regarding any product. Product representations must remain consistent with the information provided in official Company literature and regulatory approvals.
7. Monitoring of Promotional Activities
a. The Company may periodically review presentations, promotional materials, digital content, and public communications made by Direct Sellers in order to ensure compliance with these Guidelines. Where necessary, the Company may request clarification, modification, or removal of promotional material that may violate the Company’s policies or applicable laws.
b. Direct Sellers are expected to cooperate fully with the Company in maintaining lawful promotional practices.
8. Consequences of Non-Compliance
a. Any violation of these Guidelines may result in disciplinary measures including warning notices, suspension of privileges, removal of promotional material, withholding of incentives where permitted under Company policy, or termination of the Direct Seller relationship.
b. The Company treats misleading income claims as a serious compliance issue and reserves the right to take corrective action in order to protect consumers and maintain regulatory compliance.
9. Relationship with Other Company Policies
These Guidelines must be read together with the VCN Income Disclosure Statement and Anti-Misleading Representation Policy, the Direct Seller Agreement, the Company’s Compensation Plan, and all other policies issued by the Company from time to time. In the event of any inconsistency, the Company’s officially published policies and regulatory requirements shall prevail.
10. Acceptance and Compliance
By participating in the VCN direct selling business, Direct Sellers acknowledge that they have read, understood, and agreed to comply with these Income Claim Guidelines for Direct Sellers. Continued participation in the Company’s business constitutes acceptance of the standards and obligations contained herein.
