QNET Responds to Media Reports about Alleged Winding up of India Operations:
We would also like to respond to the main allegations being made as a result of this RoC report in the media. Allegation 1 – QNET is an investment scheme. QNET is an e-Commerce based direct selling company, which markets a high-quality range of products in the categories of Home Care, Personal Care, Skin Care, Health Food Supplements, Watches and Holiday Packages. Our distributors are not investors. They buy our products and also promote them to others to earn commissions on product sales. QNET operates in India through its sub franchisee, Vihaan Direct Selling (India) Pvt. Lt, which operates in is full compliance of the Direct Selling Guidelines issued by the Ministry of Consumer Affairs in Sep 2016. Allegation 2 – QNET Products are overpriced giving the company large profit margins This is a baseless claim as QNET only sells unique products that are developed exclusively for the company. Hence, there is no comparison with any other product available in the market. Every company is free to have its own pricing for different classes of buyers. The selling price factors in a number of things including marketing expense, licensing fees, and various other operational costs. The allegations in the notice takes into consideration only the selling and buying cost, which is incorrect as per trade practice. The difference between sale price and purchase price cannot by any stretch of imagination be construed as profit. Allegation 3 – Aspersions about the quality of QNET’s products QNET invests significantly into research and development to procure only the highest quality of products and services. All our products come with appropriate certifications, and proven benefits. Allegation 4 – Misrepresentations made to new distributors about the business and earning potential The details of the company’s sales incentive plan, also known as the compensation plan are clearly stated on the company website. Also, this is explained to any new distributor by the existing distributor before they decide to enrol. Acceptance of the terms and conditions of the plan, and compliance to the company’s policies is a compulsory part of the registration process, as per the Indian Contract Act. All new distributors also sign a form to acknowledge that they have understood the business as presented to them. A comprehensive database of all direct sellers is maintained by the company. The company also has a clearly stated earnings disclaimer on the website and makes no claims about any form of guaranteed income. All registered distributors are issued with identity cards. Details pertaining to sales, commission and other details as contemplated in the Direct Selling Guidelines, 2016, are provided to all direct sellers every week. We strongly refute any claims to the contrary. Allegation 5 – QNET does not have a proper grievance redressal mechanism or refund process The company has a well-established grievance redressal cell. All complaints received have a complaint number and the same is addressed in a time-bound manner. Proper records are maintained and are available with the company. All distributors are informed about the details of their purchase and the probable date of delivery over phone, and invoices are raised and the products sent by courier. All the products despatched contain the warranty and replacement details. At the time of registration, distributors are also informed that they can claim a full refund within 30 days with no questions asked. Further, if any claim is received after 30 days, the same is referred to a retired High Court Judge who serves as an ombudsman for the Grievance Cell and based on his opinion the claim is either accepted or rejected. Thus, even though the direct selling guidelines by the government suggest only 30 days, cases beyond 30 days are also considered by the company. Allegation 6 – Celebrities Endorse QNET and promote the business We have stated this in many media reports that QNET has no contractual agreements with any celebrity to promote the QNet brand. Certain personalities in the past were invited to our company events as motivational speakers. Beyond that, QNET has no connection to any celebrities as alleged. QNET is willing to speak to any media to answer further questions and is fully cooperating with all investigations. Read More : https://qnet-india.in/qnet-responds-t.
We would also like to respond to the main allegations being made as a result of this RoC report in the media. Allegation 1 – QNET is an investment scheme. QNET is an e-Commerce based direct selling company, which markets a high-quality range of products in the categories of Home Care, Personal Care, Skin Care, Health Food Supplements, Watches and Holiday Packages. Our distributors are not investors. They buy our products and also promote them to others to earn commissions on product sales. QNET operates in India through its sub franchisee, Vihaan Direct Selling (India) Pvt. Lt, which operates in is full compliance of the Direct Selling Guidelines issued by the Ministry of Consumer Affairs in Sep 2016. Allegation 2 – QNET Products are overpriced giving the company large profit margins This is a baseless claim as QNET only sells unique products that are developed exclusively for the company. Hence, there is no comparison with any other product available in the market. Every company is free to have its own pricing for different classes of buyers. The selling price factors in a number of things including marketing expense, licensing fees, and various other operational costs. The allegations in the notice takes into consideration only the selling and buying cost, which is incorrect as per trade practice. The difference between sale price and purchase price cannot by any stretch of imagination be construed as profit. Allegation 3 – Aspersions about the quality of QNET’s products QNET invests significantly into research and development to procure only the highest quality of products and services. All our products come with appropriate certifications, and proven benefits. Allegation 4 – Misrepresentations made to new distributors about the business and earning potential The details of the company’s sales incentive plan, also known as the compensation plan are clearly stated on the company website. Also, this is explained to any new distributor by the existing distributor before they decide to enrol. Acceptance of the terms and conditions of the plan, and compliance to the company’s policies is a compulsory part of the registration process, as per the Indian Contract Act. All new distributors also sign a form to acknowledge that they have understood the business as presented to them. A comprehensive database of all direct sellers is maintained by the company. The company also has a clearly stated earnings disclaimer on the website and makes no claims about any form of guaranteed income. All registered distributors are issued with identity cards. Details pertaining to sales, commission and other details as contemplated in the Direct Selling Guidelines, 2016, are provided to all direct sellers every week. We strongly refute any claims to the contrary. Allegation 5 – QNET does not have a proper grievance redressal mechanism or refund process The company has a well-established grievance redressal cell. All complaints received have a complaint number and the same is addressed in a time-bound manner. Proper records are maintained and are available with the company. All distributors are informed about the details of their purchase and the probable date of delivery over phone, and invoices are raised and the products sent by courier. All the products despatched contain the warranty and replacement details. At the time of registration, distributors are also informed that they can claim a full refund within 30 days with no questions asked. Further, if any claim is received after 30 days, the same is referred to a retired High Court Judge who serves as an ombudsman for the Grievance Cell and based on his opinion the claim is either accepted or rejected. Thus, even though the direct selling guidelines by the government suggest only 30 days, cases beyond 30 days are also considered by the company. Allegation 6 – Celebrities Endorse QNET and promote the business We have stated this in many media reports that QNET has no contractual agreements with any celebrity to promote the QNet brand. Certain personalities in the past were invited to our company events as motivational speakers. Beyond that, QNET has no connection to any celebrities as alleged. QNET is willing to speak to any media to answer further questions and is fully cooperating with all investigations. Read More : https://qnet-india.in/qnet-responds-t.
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