All QNET codes unequivocally describe the company`s zero-tolerance stance towards illegality and ethical violations and warn against immediate termination in the event of a breach. To answer this question and dispel these QNET rumors, it`s important to first understand the difference between a legitimate direct selling company and a Ponzi scheme. The main difference is that in an illegal Ponzi scheme, you get a commission to recruit more people from among them; While in a true direct selling business, commissions are only paid on the basis of the sale of products. Even if a person has a large network of people under his command, but has not sold or bought any product, he does not earn commissions. Rwanda banned QuestNet in 2009 for violating the law after the National Bank of Rwanda labeled the company a Ponzi scheme. [83] [84] Questnet appealed and was granted his release on condition that he obey the laws of the land. [38] [85] [86] QNET operates in countries with the most stringent and stringent laws and regulations for this industry, such as Singapore, Hong Kong and Germany, where our business is completely legal and complies with local laws. QNET has been labeled a Ponzi scheme or fraud, but the company has refuted these claims in a variety of ways, including through legal victories. Ponzi schemes are illegal, while QNET is a legitimate direct selling company recognized and accepted by several direct selling associations that require a high level of compliance and a strict code of conduct.
Add to that compliance with local regulations in all countries, paying taxes, community engagement, and reinvesting in the local economy. It operates legally in some countries, but has been in charge of the Ponzi scheme and multi-level marketing in countries like India. [3] [4] [5] The Indian government and the Indian telecom regulator banned the location in India after a protest spread to Bangalore. [6] [7] [8] QNET is often accused of operating an illegal Ponzi scheme. But a Ponzi scheme is defined as “a fraudulent attempt to make money where the first participants are paid from money received from subsequent recruits, with final recruits depositing money and getting nothing back”. With a proud 150-year history, the brand would have a lot to lose if it were associated with an illegal scam. Thus, trust in QNET is proof of our legitimacy. An illegal Ponzi scheme pays a commission to participants when they recruit people who then buy the product offered by the company. The entire business model is based on constantly recruiting new employees to make a significant initial investment.
Ponzi schemes are illegal and the vast majority of their participants lose money. They rely on recruiting new reps rather than selling products to make a profit, charge members high upfront fees, and convince them to buy large amounts of inventory that won`t be returned. Their products usually have little or no real value. In India, Qnet has been prosecuted and/or arrested in Kukatpally,[280] Cyberabad,[281][282][283][284][285][286][287][288] Bangalore,[289][290][291][292][293], Hyderabad,[294] Goa,[295] Rajasthan,[296] Telangana[297] and Powai. [298] Cyberabad police began investigating the suicide of a former technician for alleged losses he incurred after investing 25 Indian lakh rupees in the Qnet Ponzi scheme. Becoming a QNET India and direct seller for QNET India is completely legal in India. QNET is a company registered in India and operates through its sub-franchisee, Vihaan Direct Selling India Pvt. Ltd. The company is incorporated under the Companies Act 1956 and has company number U52399KA2011PTC060730. Illegal. Pyramid scheme. Fraud.
In more than two decades of activity, we have heard it all. Unfortunately, such claims, stemming from misinformation and lack of awareness, tend to promote an unfavorable narrative on QNET. Yet thousands of people around the world continue to trust QNET and promote our products and services to friends and family. In Maharashtra, a court ruled that Qnet`s operations were not legal. [205] In February, the Delhi Supreme Court rejected a request to annul a first information report characterizing Qnet as fraud. [206] In March, forty-seven IRs were arrested and several bank accounts frozen. [207] In April, the Enforcement Branch provisionally seized over 150 crores of Qnet properties. [208] [209] In May, Economic Offences Wing Mumbai announced that a unit would be formed to compensate Qnet investors pending a court order. [210] IRs were arrested in Kerala,[211][212] Thiruvananthapuram,[213] Meerut[214] and Kochi. [215] Complaints were filed in Hyderabad, Madhapur,[216] and Mumbai. [217] Let`s start with the basics.
