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Questnet opened in [[Turkey]] during 2010 with about 150 people participating, 80 of them were later detained while police investigated them From that investigation 42 peope were charged with gainaing an unfair advantage.<ref>[http://www.trt.gov.tr/Haber/HaberDetay.aspx?HaberKodu=a57387a7-efd2-458c-8fbc-b882386b63fe TRT HABER – Saadet Zinciri Operasyonu]. Trt.gov.tr (2010-10-22). Retrieved on 2011-11-12. <small> source in turkish translated to english through google translate 2011-19-12</small></ref> In April 2011 the Industry and Trade Ministry announced they were investigating Qnet when the ministry recieved complaints that it was a rebrand of Questnet operating under the smae circumstances. The Ministry also reveal that Quest was fined a [[Turkish lira|TL]]3.64 million([[United States dollar|USD]] 1.9 million) for its illegal activities in 2010.<ref>http://www.todayszaman.com/newsDetail_getNewsById.action?load=detay&newsId=240912&link=240912</ref>
Questnet opened in [[Turkey]] during 2010 with about 150 people participating, 80 of them were later detained while police investigated them From that investigation 42 peope were charged with gainaing an unfair advantage.<ref>[http://www.trt.gov.tr/Haber/HaberDetay.aspx?HaberKodu=a57387a7-efd2-458c-8fbc-b882386b63fe TRT HABER – Saadet Zinciri Operasyonu]. Trt.gov.tr (2010-10-22). Retrieved on 2011-11-12. <small> source in turkish translated to english through google translate 2011-19-12</small></ref> In April 2011 the Industry and Trade Ministry announced they were investigating Qnet when the ministry recieved complaints that it was a rebrand of Questnet operating under the smae circumstances. The Ministry also reveal that Quest was fined a [[Turkish lira|TL]]3.64 million([[United States dollar|USD]] 1.9 million) for its illegal activities in 2010.<ref>http://www.todayszaman.com/newsDetail_getNewsById.action?load=detay&newsId=240912&link=240912</ref>


In 2009 people protested to [[The Sudan]] government until QuestNet was banned, main complaints were about receiving very cheap products in exchange for money sent to the company or even not receiving anything at all. Cheap products like copper necklaces that was supposed to be golden and not working mobile phone lines that was supposed to be connected to satellite<ref>http://www.alnilin.com/news.php?action=show&id=7622</ref>. Even after shutting down the company, another Agent wanted to renew the contract of QuestNet in [[the Sudan]], the government refused stating that it wouldn't renew the contract of such company after a [[Fatwa]] has been issued to ban dealing with it and specially when watching other countri's suffer from it, the government in [[Sri Lanka]] had suffered withdrawing more than 15 million dollars out of the country which led the Sri Lankan government to issue a punishment of 3 year in jail for any one caught in promoting or dealing with that company.<ref>http://www.alnilin.com/news-action-show-id-7056.htm</ref>
In 2009 people protested to [[The Sudan]] government until QuestNet was banned, main complaints were about receiving very cheap products in exchange for money sent to the company or even not receiving anything at all. Cheap products like copper necklaces that was supposed to be golden and not working mobile phone lines that was supposed to be connected to satellite <ref>http://www.alwatansudan.com/index.php?type=3&id=13772&bk=1</ref><ref>http://www.alnilin.com/news.php?action=show&id=7622</ref>. Even after shutting down the company, another Agent wanted to renew the contract of QuestNet in [[the Sudan]], the government refused stating that it wouldn't renew the contract of such company after a [[Fatwa]] has been issued to ban dealing with it and specially when watching other countri's suffer from it, the government in [[Sri Lanka]] had suffered withdrawing more than 15 million dollars out of the country which led the Sri Lankan government to issue a punishment of 3 year in jail for any one caught in promoting or dealing with that company.<ref>http://www.alnilin.com/news-action-show-id-7056.htm</ref>


===Products===
===Products===

Revision as of 11:27, 20 December 2011

Qnet ltd, or QuestNet or GoldQuest, is a Hong Kong based direct selling owned by the QI Group. The company that sells a variety of products including energy products, nutrition, watches, jewelry and vacation packages.[1]

The company's marketing strategy is based on a multi-level marketing model which depends on a group of independent representatives who refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams who are arranged in a binary fashion.

Qnet is a member in the Direct Selling Association of Malaysia and Singapore,[2][3] it has offices in some Asian countries such as Indonesia, Philippines and Taiwan [4] and it also operates in other countries such as India, Saudi Arabia, Egypt and Cote d'Ivoire.

The company has also been accused of operating a product-based pyramid scheme in some countries, these accusations have often resulted in the shut down of the company by the government and the arrest of key members involved with the company.[5][6][7][8] Other forms of criticism revolve around the actual worth of the products sold by the company, the compensation plan implemented by the company which encourages the sales of products to new independent representatives rather than real consumers and degree of which the independent representatives follow the code of ethics of direct selling.[citation needed]

History

A typical MLM binary tree structure. The blue individual will receive compensation from the sales of the downline red members.

Qnet is the main subsiduary of the QI Group and was founded in Hong Kong in 1998 it was initially known as GoldQuest, Qnet operates as a direct selling company providing a variety of consumer products including watches jewelery, holiday packages and energy products.[1] In 2003, the company rebranded to QuestNet. In 2010, the name of the company was shortened to Qnet.[9][10]

The company's marketing strategy is based on a multi-level marketing model which depends on a group of independent representatives who refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams who are arranged in a binary fashion.[11]

Qnets business model have been described as a simple pyramid scheme, where inital entrants to the scheme do make money but as the number of Independent Representatives(IR) increase the ability to find more IR's reduces until those that join late are unable to recover even their initial outlay and the model collapses. Qnet Public Relations manager counters this explanation as offering a business opportunity that doesnt have the high cost of startup as a limiting factor. When an IR recommends the product the customer makes a purchase through Qnets online system the IR recieves a commision based upon Qnets compensation plan.[12] [11]

The compensation plan operates by the recruitment of customers by existing Independent Representatives (IR). An IR is provided with an ID that gives access to a 'Tracking Centre' (TC) in its computer system through which the IR's sales are tracked. A TC has a left and right customer group. Every customer owns a TC which is then placed on the left or right customer side of the IR's TC. A 'direct' transaction (your sale) is counted as 1 transaction. An 'indirect transaction (someone in your TC sells) is also counted as 1 transaction. the company pays $250 each time 3 product sales on an IR's left customer group are matched by 3 product sales on the right.[citation needed][13][unreliable source?]


RYTHM foundation -derived from the acronym 'Raise Yourself To Help Mankind'- is a charity organization created by QI Group.[9]

Association memberhsips

Qnet is a member of the direct selling association of Malaysia,[2] and the direct selling association of Singapore,[3] In 2007, APLI, the direct selling Association of Indonesia, considered QuestNet a pyramid scheme.[7]

Controversies

According to Bill E. Branscum, the owner of FraudsandScams.com website,[citation needed] Qnet is considered a Hong Kong based pyramid scheme that markets gold coins, Swiss made Watches, Energy products and time share vacations.[14]

On the 4th of December, 2002, Cameron Thompson, member of the Australian Parliament, identified GoldQuest as an example of Pyramid Schemes during his speach in support of the governments proposal to amend the Trade Practices act(1974).[15][better source needed] The Iranian government banned GoldQuest after what is believe to have been one the largest economic corruption cases in the countries history, prosecutors found that the pryamid scheme activities by GoldQuest led to removal of around USD500 million from the country.[5]

Approxiamately 3000 people primarlily young men marched on the presdential palace in Kabul after the government temporarily withdraw QuestNets license to operate. The busness started in Afghanistan with around 600 IR's in 2006 and had expanded to 21,000 when the government temporarily withdrew the license to enable it to write operating laws.[16]

September 4, 2009 the Rwandan Government's Ministry of Finance issued statement banning QuestNet from operating in Rwanda due to controvening company and tax laws. The directive follows a declaration day before the by National Bank of Rwanda which descrbed QuestNet as operating a shadowy pryamid scheme. Citing article 4 of the companies act and articles 9, 10 of the tax act Minister James Musoni issued the order forcing Questnet and its IR's to immediately stop all activities.[17]

Questnet opened in Turkey during 2010 with about 150 people participating, 80 of them were later detained while police investigated them From that investigation 42 peope were charged with gainaing an unfair advantage.[18] In April 2011 the Industry and Trade Ministry announced they were investigating Qnet when the ministry recieved complaints that it was a rebrand of Questnet operating under the smae circumstances. The Ministry also reveal that Quest was fined a TL3.64 million(USD 1.9 million) for its illegal activities in 2010.[19]

In 2009 people protested to The Sudan government until QuestNet was banned, main complaints were about receiving very cheap products in exchange for money sent to the company or even not receiving anything at all. Cheap products like copper necklaces that was supposed to be golden and not working mobile phone lines that was supposed to be connected to satellite [20][21]. Even after shutting down the company, another Agent wanted to renew the contract of QuestNet in the Sudan, the government refused stating that it wouldn't renew the contract of such company after a Fatwa has been issued to ban dealing with it and specially when watching other countri's suffer from it, the government in Sri Lanka had suffered withdrawing more than 15 million dollars out of the country which led the Sri Lankan government to issue a punishment of 3 year in jail for any one caught in promoting or dealing with that company.[22]

Products

One of the products being marketed by the company, is the Amezcua Bio Disc (also spelled BioDisc and BioDisk) which the company claims that it can "redefine and harmonise the energy of water, greatly maximising its positive affect on the human body".[23] These and other detailed claims of often miraculous properties have been widely denounced as fraudulent by various scientists, media commentators and watchdog organizations.[24][25] Critics have noted that the claims are based on thoroughly debunked pseudoscientific concepts such as hexagonal water and that they have never been validated by a peer-reviewed process. The company, QNet, itself states in a document published to its IRs named FAQ – Amezcua Bio Disc[26] that there are no known test and approval bodies to date on such product.

References

  1. ^ a b "All Products". Retrieved 17 December 2011.
  2. ^ a b Members List | Direct Selling Association of Malaysia. DSAM. Retrieved on 2011-11-12.
  3. ^ a b List Of All Members. Dsas.org.sg. Retrieved on 2011-11-12.
  4. ^ "Worldwide Offices". Retrieved 16 December 2011.
  5. ^ a b PressTV – Iran busts more pyramid scammers. Presstv.ir (2010-08-01). Retrieved on 2011-11-12.
  6. ^ SriLanka banned Gold Quest long time ago. Muthamil.com (2007-05-16). Retrieved on 2011-11-12.
  7. ^ a b “Money Game Marak Lagi!”. Apli.or.id. Retrieved on 2011-11-12.
  8. ^ "TRADE PRACTICES AMENDMENT BILL (NO. 1) 2002 Second Reading". Retrieved 9 November 2011.
  9. ^ a b "About". Qnet. Qnet. Retrieved 20 December 2011.
  10. ^ "The QuestNet Scam: A Case of Mistaken Identity". Retrieved 17 December 2011.
  11. ^ a b "Direct selling - How does it work". Qnet. Retrieved 20 December 2011.
  12. ^ Faso, Brukina (04-05-2010). "QuestNet pyramid scheme drops anchor in Africa". France 24. Retrieved 20 December 2011. {{cite news}}: Check date values in: |date= (help)
  13. ^ Frauds and Scams Introduction | Crimes of Persuasion – A Resource for Investigators. Fraudsandscams.com. Retrieved on 2011-11-12.
  14. ^ Direct Selling – About. QNet. Retrieved on 2011-11-12.
  15. ^ ParlInfo – Title Details. Parlinfo.aph.gov.au (2002-12-04). Retrieved on 2011-11-12.
  16. ^ AFP (11-02-2008). "Thousands protest in Kabul for banned scheme". Daily Times. Retrieved 20 December 2011. {{cite news}}: Check date values in: |date= (help)
  17. ^ GAHAMANYI, John (04-09-2009). "Questnet banned". The Newtimes. Retrieved 20 December 2011. {{cite news}}: Check date values in: |date= (help)
  18. ^ TRT HABER – Saadet Zinciri Operasyonu. Trt.gov.tr (2010-10-22). Retrieved on 2011-11-12. source in turkish translated to english through google translate 2011-19-12
  19. ^ http://www.todayszaman.com/newsDetail_getNewsById.action?load=detay&newsId=240912&link=240912
  20. ^ http://www.alwatansudan.com/index.php?type=3&id=13772&bk=1
  21. ^ http://www.alnilin.com/news.php?action=show&id=7622
  22. ^ http://www.alnilin.com/news-action-show-id-7056.htm
  23. ^ "Bio Disc 2 (product description)". QNet. Retrieved 11 November 2011.
  24. ^ "BIO DISC SUMMARY" (PDF). Africa Center for Apologetics Research. Retrieved 11 November 2011.
  25. ^ Fulcher, Ben (April 2008). "Feature Article: Scalar Energy" (PDF). Jeremy (newsletter of the University of Sydney Physics Society). Retrieved 11 November 2011.
  26. ^ http://www.qnet.net/static_files/pdf/FAQBioDisc.pdf
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