Thursday, June 30, 2022

QNET Responds to Allegations in Media Reports in UAE

We understand that the recent media coverage about QNET in UAE has raised concerns in the network about QNET’s business in UAE and in India. We have received many queries about this on various channels and take this opportunity to address the concerns.

As you are aware, we have launched a global campaign to create awareness about QNET’s zero-tolerance policy towards any misleading or unethical practices using the company’s name. In line with this, we recently took action to terminate over 400 QNET IRs in 22 countries who were found to be in violation of QNET’s policies and code of conduct. To ensure that we inform the general public to be aware and protect customer interests, we placed a public notice ad about this action in a leading daily in UAE.

We are since surprised that a public notice placed in good faith to protect the interests of all of our valued Independent Representatives has generated media reports that are misleading, filled with factual inaccuracies and even malicious in nature. None of these publications contacted QNET for a comment or for a response to the allegations made by parties with vested interests.

We are engaging with the media houses in question to address the misleading reports and have them publish our side of the story. Meanwhile, we are listing here the key allegations and our responses to them.

1. The public notice ad by QNET is being misconstrued and presented as an attempt to deflect blame.

QNET has always taken necessary disciplinary action against any distributor found guilty of violating its policies. It is unfortunate that these media reports attempt to mislead readers and viewers about an initiative that is meant to inform and alert the public against fraud. One media channel has reported that the list of 400+ names included some of our leaders in the UAE. This is information is completely untrue and intended to mislead our network.

2. The news reports continue to refer to QNET as an investment or money chain scheme and our Independent Representatives (IRs) as investors.

QNET does not offer any type of investment opportunity, scheme, or job opportunity. We either have retail customers who purchase our products for personal use or independent representatives who not just use our products but actively promote them to others to earn commissions through such product sales.

The people interviewed for the media reports who claim to be IRs of QNET have never contacted the company to register a complaint. Our office address and phone number are available on our website. If someone feels that they have been misled about the business, we encourage them to contact our customer support and provide us with all the details. They can also email to alert us of such instances.

3. These media reports reference an old and outdated order from 2016 from the Bombay High Court.

This old order was from an Anticipatory Bail hearing and did not even examine the business model of the company. Since then, the legitimacy of the QNET business in India is testified by the following orders from various courts.

a. The High Court of Karnataka quashed the charges against QNET’s Indian franchisee in February 2017 and observed in the order that:

“the activities undertaken by QNET and Vihaan do not constitute offences under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. The activities of the company do not fall within the definition of ‘Money Circulation Scheme’ under Section 2(c) of the act, nor does it fall within the definition of ‘Prize Chit’ under Section 2(e) of the Act.

Direct Selling industry is legal and based on the most familiar of commercial transactions; a willing seller offering legal products to willing buyers in exchange for money. Ponzi schemes and other deposit-taking scams are illegal as the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 is being misinterpreted to victimise lakhs of buyers and sellers involved in entirely legal direct selling industry”

b. The Supreme Court of India in March 2017 stayed all further proceedings against company QNET and its Indian franchisee Vihaan Direct Selling Pvt Ltd.

c. The High Court of Telangana and Andhra Pradesh have stayed all proceedings against the company in late 2016.

4. Media reports make references to crackdown on QNET’s Indian franchisee by Cyberabad Police Commissioner

The Telangana high court on February 6, 2019 ordered the Telangana government, the Hyderabad police commissioner, and the Cyberabad police commissioner, to refrain from taking any “coercive action” against the distributors of QNET in India.

In fact, the Supreme Court of India issued a contempt notice to the Cyberabad police commissioner in the same month for violation of the high court order.

QNET operates its India business through its franchisee Vihaan Direct Selling (India) Pvt. Ltd. and is compliant with all statutory requirements of the State of Telangana and all other states that it operates in. It is also aligned and operates in full compliance with the Direct Selling Guidelines issued by the Ministry of Consumer Affairs, Government of India in September 2016. The Guidelines have now been accepted in 14 States in India. QNET has never been convicted of anything in any court of law.

5. Some of the reports claim that QNET is banned in all the countries where it operates.

Please note that QNET is a legitimate company that operates in full compliance in all the countries where we operate. QNET has a local presence through branch offices, franchisee companies and local agents in more than 30 countries.


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