Regular people will find the intent clear, but by the letter of the turn sequence, if I have one action card in my hand and play it (as required) in step 2, then when I reach step 3 I now have no action cards in my hand and should thus discard one. To remove this potential for misinterpretation, you might try "3. If you did not play an ACTION card (because you had none), then you MUST..."
Also, I was momentarily confused by the instruction that a player with no CANDY is "skipped during the defense phase of the game." At first I thought this might mean that such a player is not allowed to play a defense card before settling on the more likely interpretation that a defense card that redirects an "I'll Take That" goes to the next CANDY PILE, so players without a CANDY PILE are skipped over. This might be clearer if the note were included with the explanation of the cards. Something like "A player with no CANDY has no CANDY PILE, so they are ignored when identifying the new CANDY PILE."