Determining the scope and intent of vague terms is a difficult task. John says in verse 1:6, if we say we have fellowship with Him yet walk in darkness , we lie and do not practice truth. In no way is John saying John walks in darkness and does not practice truth. John is simply using an inclusive term to avoid coming on like a holier than thou person. Notice in verse 7, John again uses the very same we, speaking of the behavior of born again believers. Therefore the "we" does not connotate an exclusive group of believers. Again, in verse 8 John is speaking of folks who may think they are saved, but based on the inability to see sin in their lives, their true condition is they are not born again and indwelt. The first step in not sinning is recognizing our sins. Hence verse 9, says if we confess our sins, speaking to the unsaved, God will justifiy us in Christ. Then, verse 10, but if we do not recognize our sins, God's word, the good news of the gospel is not in us, we have not fully accepted the gospel and committed to Christ.