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Truth number one: Walking in the light results in fellowship and cleansing (1:7), the antithesis of walking in darkness. “Walking” is an idiom for pursuing a certain way (cf. Ps 1); walking in the light implies actively living in conformity to God’s will, as well as complete transparency.
Fellowship in this context apparently has a dual reference, including both God and fellow believers. The Bible consistently emphasizes the inseparability of vertical and horizontal relations; both are essential to true religion.
Purifies connotes sanctification, as distinct from justification. It refers to the divine provision to purify the “defilement of our fallen nature” (Stott, 76). It is appropriate to attribute this cleansing to the blood of Jesus, since the shedding of blood in the cultic sacrifices refers to sanctification (see notes on 2:1-2). It is used in the same ceremonial sense as in Hebrews but—as there—with ethical overtones.
It is important to note that purifies is in the present progressive tense and implies an ongoing provision for a moment-by-moment relationship.
Truth number two: Confession of sins results in forgiveness (1:9). John is not laying out the order of salvation but simply responding to the gnostic claim not to have sinned. (The issues are addressed in reverse to the traditional understanding of the order of salvation. Forgiveness of sins precedes cleansing from sin, both in experience and in theology.)
Faithful and just means dependableness or being true to promises given. God’s promise is the basis of faith, confession is the human condition that becomes the occasion for claiming God’s promise of forgiveness (cf. Dt 7:9; 1Co 1:9; 2Ti 2:13).
Truth number three: All have sinned and are in need of forgiveness (1:10). God’s judgment is that the human race is universally in need of redemption (Ro 3:23). To claim otherwise is to make him out to be a liar. This is even more heinous than lying to ourselves (1:6).
Taken out of context, 1:10 appears to affirm the impossibility of freedom from sin in this life. But it ought to be interpreted in light of the larger context, including 3:6-10. The author is speaking against a position that claims never to have sinned, affirming the ongoing necessity of sinning after conversion.