September 28, 2022

Is QNET Legal or Illegal?

QNET is a legitimate, legal direct selling company that utilizes an e-commerce platform to offer a wide range of products in the health, wellness, lifestyle, and education fields to customers in nearly 100 countries. “Our distributors are present in many different regions around the world that is why we offer a diverse portfolio to suit different demographics. In addition, we work with international vendors to design unique, high quality, and advanced technology products that are only available at QNET,” says CEO Malou Caluza. So why do QNET scam allegations come up in the media? “Unfortunately, due to lack of understanding of the direct selling business in many parts of the world. While direct selling is more than a century old, it is still in very early stages in many emerging economies and, hence, not properly understood. Many people assume it is some type of financial or investment scheme, and they are wary of it,” Caluza explains.

There is often confusion surrounding whether QNET is legal or illegal in India. The truth is that QNET operates in India through a franchisee company Vihaan Direct Selling (India) Pvt. Ltd that is registered and incorporated under the Companies Act 1956. According to The Economic Times report, the direct selling industry’s compound annual growth rate (CAGR) is 4.8%, with 12.1% year-over-year growth. 

Is QNET Legal or Illegal in India? 

It’s not only legal in India, but it also actively contributes to the economy and the community. More than 80% of the products offered by QNET in India are sourced locally supporting the government’s Make in India initiative. The company offers an excellent opportunity for entrepreneurial advancement and success especially for women. QNET also works with a number of NGOs and grass roots organisations on projects that support economic empowerment of women in rural India, provides quality education to children in underserved communities, and brings solar powered solutions to remote communities in the mountains.  

Direct selling is one of the fastest-growing industries in India and is expected to create self-employment opportunities for over 18 million people and reach a value of 64,500 Crore by 2025. A lot of this has to do with the fact that in 2016 India’s Ministry of Consumer Affairs, Food, and Public Distribution instituted the Direct Selling Guidelines. The guidelines have been instrumental in helping prevent fraudulent business practices while also protecting the consumers’ lawful rights and interests. 

QNET is a very transparent company that’s been in business for over two decades, while the majority of illegal scam companies can’t last that long. It also created a compliance department to investigate all complaints about violations of company policies and procedures and “enforce penalties on those who misuse the QNET name and/or harm the company’s reputation,” explains Caluza.

What Makes QNET a Legal Success?

“We tapped into the rise in micro-entrepreneurship. The gig economy that everyone is talking about today is popularized by tech companies, but direct selling was the original gig economy business,” explains Caluza. “I think one of the smartest things our founders did was to merge the concept of direct selling with the then very new concept of e-commerce. This definitely disrupted traditional direct selling, which at the time was all about personal or face-to-face interactions and establishing retail shops, and so we experienced some challenges, but we invested a lot of excitement, passion, and belief into what we were doing and the experiment paid off. As a result, we have won a number of awards for our work.”

Caluza says another aspect that sets QNET apart is that the direct selling business “is a great equalizer. It is gender-neutral and does not discriminate on the basis of age, education, or socioeconomic background. Anyone can have access to the opportunity to become an entrepreneur at a very low cost, provided they are willing to put in the hard work and have the right mindset to build a business.” According to The World Federation of Direct Selling Association’s (WFDSA) 2019/2020 report, some 120 million people from all walks of life are part of the direct selling industry, and more than 74% of direct selling distributors globally are women. 

“Direct selling is truly an industry where gender or background does not dictate one’s success; hard work and a passion for building relationships with people is the most integral part of our distributors’ success stories,” says Caluza. 

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