Many of you have reached out to us about the coverage of QNET on a business news channel channel this week, which alleges that QNET is a fraudulent money circulation scheme. Understandably, this may have raised questions about the company’s credibility.

We take this opportunity to clarify our position since we were not given the opportunity to respond to the allegations before the report was aired. We have listed the allegations made in the report with our responses, for your benefit. This also serves to assure you of the company’s legitimacy, and our commitment to you, our IRs.

Allegation: QNET is a fraudulent Direct Marketing Company
Response: QNET is a Legitimate Direct Selling Company

It is important to understand what is the business model of QNET is. QNET is a direct selling company that has adopted a network marketing business model for promoting its products and services.  Direct Selling is a 100-year-old business model and a global industry that generated $182 billion last year. Approximately 100 million people around the world are involved in direct selling as independent distributors, who earn commissions based on products they sell for their company. QNET is part of this well-established industry since 1998 and was in fact, a pioneer in adopting eCommerce in the direct selling industry. Today, QNET ships products to over 100 countries around the world.

Read: Direct Selling – Top 10 Questions Answered

Allegation: QNET is a Deposit and Investment Scheme
Response: QNET only sells high quality products and services

QNET does not accept any deposits or promote any type of investment schemes. This is very clear on our website and all our marketing material. QNET sells a number of different lifestyle products that are created exclusively for QNET by reputed, international experts. In India, QNET sells wellness and lifestyle products, such as nutrition supplements, air purification systems, skin care and holiday packages. All products are of very high quality and have received the necessary certifications and approvals wherever applicable.  Anyone who purchases a product on our eCommerce portal in India receives their product within 10 business day.

Allegation: QNET is a get-rich-quick scheme
Response: There is no opportunity to make ‘Quick-Money’ with QNET

QNET offers a business opportunity along with its products to all customers. Those who wish to take up the business need to understand that it is a business like any other. It requires the person to put in hard work and effort, build a team, offer training and development, and spend long hours building the business just as he would if he were an entrepreneur starting a new business venture in any other industry.

Read: 7 Network Marketing Myths Busted

Allegation: QNET does not refund customers
Response: QNET has a clear refund policy

When a customer decides to purchase a product from QNET, he/ she needs to register on the QNET website to create an account and read through and agree to the terms and conditions which includes a clearly stated refund policy.

Any customer who is unsatisfied with his product purchase, with justified reasons, should contact the company within a 30 day buy back time period and QNET will accept the refund request. We encourage anyone who signs up with QNET to familiarise yourself with our clearly stated and visible terms and conditions before they agree to a product purchase from us. Visit the official QNET India website for further information.

Allegation: Agents make money by recruiting others
Response: QNET Pays commissions only on Product Sales

QNET does not have any agents, only independent representatives who are distributors of our products.  Distributors are compensated only on the volume of product sales. There is no “Recruitment” requirement.

Allegation: QNET claims agents can make several lakhs a month
Response: QNET does not make any guaranteed income statements

QNET has a clearly started Earnings Disclaimer that is available on our website as well as other marketing and promotional materials. All earnings are entirely commensurate with the effort of the distributor. Any income estimate provided by a representative is only indicative of the potential of the compensation plan offered by QNET. What a person earns in commissions is completely dependent on the work he puts into it, just like in any business.

Note: There have been cases of unscrupulous individuals who have made misleading claims and misrepresented the company. They are not authorised to make such statements and all prospects who are approached by a representative are advised to visit our website to obtain official information and confirm or clarify any claims they have heard.

Read: I am a Network Marketing Professional

Allegation: The Minimum Product Price at QNET is Rs.3 Lakhs
Response:  QNET products in India range from INR 1,485 to a maximum of INR 315,300

More than 50 different products are offered by QNET to our customers in India ranging from nutritional supplements and herbal teas to air purifiers, high-end luxury watches and vacation packages for the entire family.

Allegation: QNET’s Operations in India are illegal
Response: QNET Operates in India through a licensing agreement with Vihaan Direct Selling (India) Pvt Ltd.

The company’s operations are fully compliant with Indian laws and business regulations. The company is a good corporate citizen in all aspects, including compliance and all tax matters which are duly lodged and filed accordingly.

We want to assure you, our IRs that QNET is a legitimate business with a 17-year global history. The lack of legislation to govern direct selling companies in India has at times wrongly resulted in QNET being accused of running a money circulation scheme. QNET has been actively advocating for legislation to help legitimate direct selling companies distinguish themselves from Pyramid and Ponzi schemes that operate under the guise of direct selling.

QNET is an advocate for professional marketing and ethical behaviour of its IRs.  The company takes significant measures in working transparently and standardising ethical business practices. Our IRs, as distributors, are held to a very strict code of ethics and are held responsible for misrepresenting the business. We encourage that any misrepresentation be reported to the compliance department via email to our support center. We have already reached out to the public through a number of published public notices in leading newspapers around the country.

Thank you for your continued support. Join us in advocating for legislating this powerful industry that has helped so many people.

Read also:  Indian Direct Selling – Facts and Figures

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