"Vous lui dites."
Translation:You tell him.
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Lui is the indirect object, while le is the direct object. You use lui here because something is being told to him. In English, we don't use the structure "I tell to him," but it is still understood that he is the indirect object. For example, "je le jette" would mean "I throw him," as in he is the thing that I am actually throwing. "Je lui jette" would mean "I throw to him," as in I am throwing something to him.