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=== Association memberships ===
=== Association memberships ===


QNet is a member of the direct selling association of [[Malaysia]],<ref name="dsam"/> and the direct selling association of [[Singapore]].<ref name="dsas"/> In 2007, APLI, the direct selling Association of [[Indonesia]], considered GoldQuest or QuestNet a [[pyramid scheme]].<ref>http://translate.google.co.uk/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fapli.or.id%2Fwebsite%2Findex.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D60%253Akewaspadaan-terhadap-bahaya-money-game-meningkat%26catid%3D35%253Afokus%26Itemid%3D1</ref>
QNet is a member of the direct selling association of [[Malaysia]],<ref name="dsam"/> and the direct selling association of [[Singapore]].<ref name="dsas"/> In 2007, APLI, the direct selling Association of [[Indonesia]], considered GoldQuest or QuestNet a [[pyramid scheme]].<ref>http://apli.or.id/website/index.php?option=com_content&view=article&id=60%3Akewaspadaan-terhadap-bahaya-money-game-meningkat&catid=35%3Afokus&Itemid=1</ref>


==Controversies==
==Controversies==

Revision as of 14:11, 14 June 2012

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

The company's marketing strategy follows a multi-level marketing model, depending on independent representatives to 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 or has operated in other countries such as India, Saudi Arabia, Egypt and Côte d'Ivoire.

The company has also been accused of operating a product-based pyramid scheme. In Iran and Indonesia these accusations have 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]

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 subsidiary 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 jewellery, holiday packages and energy products.[1] In 2003, the company re-branded 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]

QNet's business model has been described as a simple pyramid scheme, where initial entrants to the scheme do make money, but as the number of Independent Representatives(IR) increases, finding more IR's becomes harder and harder, until those that join late are unable to recover even their initial outlay and the model collapses. QNet's Public Relations manager counters this explanation as offering a business opportunity that doesn't have the high cost of start up as a limiting factor. When an IR recommends the product the customer makes a purchase through QNets online system and the IR receives a commission based upon QNets compensation plan.[11][12]

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 (a customer's personal reference or sale) is counted as one transaction. An 'indirect transaction (someone in the cusomer's TC buys/refers/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.[13][unreliable source?]

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

Association memberships

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 GoldQuest or QuestNet a pyramid scheme.[14]

Controversies

According to Bill E. Branscum, the owner of FraudsandScams.com website, QNet operates as a pyramid scheme.[15]

On the 4th of December, 2002, Cameron Thompson, member of the Australian Parliament, identified GoldQuest as an example of pyramid schemes accordin g to a list prepared by The Office of Consumer and Business Affairs in South Australia during his speech in support of the government's proposal to amend the Trade Practices act(1974). The list contained 60 other companies that was thought to be proposed in an effort to con consumers in Australia[16][better source needed] The Iranian government banned GoldQuest after what is believed to have been one the largest economic corruption cases in the country's history. Prosecutors found that the pyramid schemes of GoldQuest led to removal of around USD 500 million from the country.[5]

Approximately 3000 people, primarily young men, marched on the presidential palace in Kabul after the government temporarily withdrew QuestNet's license to operate. The business 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.[17]

On September 4, 2009 the Rwandan Government's Ministry of Finance issued a statement banning QuestNet from operating in Rwanda due to violations of company and tax laws. The directive followed a declaration day before by the National Bank of Rwanda describing QuestNet as a shadowy pyramid scheme which "is collecting money from subscribers in Rwanda and sending it outside to companies called Park King Development and DBS Hong Kong using swift transfer."[18] Citing article 4 of the companies act and articles 9 and 10 of the tax act, Minister James Musoni issued the order forcing Questnet and its IRs to immediately stop all activities.[19] The company said in 2010 that "the activities of the 'IRs' had been suspended and that it was getting the suspension lifted. In the same letter, responding to an article critical of its activities in Burkina Faso, it said it was not banned in any country.[20]

Questnet opened in Turkey in 2010 with about 150 people participating; 80 of them were later detained while police investigated them. From that investigation 42 people were charged with gaining an unfair advantage.[21] In April 2011 the Industry and Trade Ministry announced they were investigating QNet when the ministry received complaints that it was a rebrand of Questnet operating under the same circumstances. The Ministry also revealed that Quest was fined a TL3.64 million(USD 1.9 million) for its illegal activities in 2010.[22]

In 2009 people protested to The Sudan government until QuestNet was banned. The 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 sold as gold and non-working mobile phone service, supposed to be connected to satellite.[23][24] Even after the company was shut down, another agent wanted to renew the contract of QuestNet in the Sudan, but the government refused stating that it wouldn't renew the contract of such company after a Fatwa had been issued to ban dealing with it and especially when watching other country's suffer from it. The government in Sri Lanka had suffered a loss of more than 15 million dollars out of the country[25] 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.[26]

The Syrian ministry of economics has ordered shutting down QuestNet's office in Syria in April 2009, after one year of operation, for the reason of violating the commercial registration granted to it.[27]According to statements of the Director of facilitation and trade efficiency in the Syrian Ministry of Economy, Ramzy Asawda, QuestNet has been performing a Pyramid scheme in Syria and it has withdrawn a terrifying amount of money out of the country, estimated to be Billions of Syrian pounds with paying a relatively little amount of taxes in return. Asawda also states that there can't be another office of the same company in Syria and if there are some people who are still working for this company, then they are performing an illegal action.[28]

The Home minister of Nepal banned GoldQuest in February, 2003, accusing it to be a pyramid scheme that was not registered with the Nepali government. Krishna Bahadur Manandhar, chief of the foreign exchange department at the Nepal Rastra Bank, stated that the Hong Kong-based company, GoldQuest, is a hundred percent fraud, explaining the reason of the NRB for not being able to take an action earlier, that there were no written records or agreements of any of the company's transactions.[29]

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".[30] These and other detailed claims of often miraculous properties have been widely denounced as fraudulent by various scientists, media commentators and watchdog organizations.[31][32] 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[33] 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. ^ “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. ^ http://apli.or.id/website/index.php?option=com_content&view=article&id=60%3Akewaspadaan-terhadap-bahaya-money-game-meningkat&catid=35%3Afokus&Itemid=1
  15. ^ http://www.fraudsandscams.com/examples.htm
  16. ^ ParlInfo – Title Details. Parlinfo.aph.gov.au (2002-12-04). Retrieved on 2011-11-12.
  17. ^ 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)
  18. ^ John Gahamanyi (29 July 2009), Rwanda: BNR Warns of Major Fraud in Popular Pyramid Scheme, retrieved Dec 21 2001 {{citation}}: Check date values in: |accessdate= (help); Text "web" ignored (help)
  19. ^ GAHAMANYI, John (04-09-2009). "Questnet banned". The Newtimes. Retrieved 20 December 2011. {{cite news}}: Check date values in: |date= (help)
  20. ^ http://www.france24.com/fr/files_fr/questnet_reponse1.jpg
  21. ^ 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
  22. ^ http://www.todayszaman.com/newsDetail_getNewsById.action?load=detay&newsId=240912&link=240912
  23. ^ http://www.alwatansudan.com/index.php?type=3&id=13772&bk=1
  24. ^ http://www.alnilin.com/news.php?action=show&id=7622
  25. ^ http://www.falseprofits.com/SriLankaReport.pdf
  26. ^ http://www.alnilin.com/news-action-show-id-7056.htm
  27. ^ http://www.alwatanvoice.com/arabic/news/2009/04/08/136782.html
  28. ^ http://www.syria-news.com/readnews.php?sy_seq=105456
  29. ^ http://www.nepalitimes.com/issue/2003/02/07/DomesticBrief/4625
  30. ^ "Bio Disc 2 (product description)". QNet. Retrieved 11 November 2011.
  31. ^ "BIO DISC SUMMARY" (PDF). Africa Center for Apologetics Research. Retrieved 11 November 2011.
  32. ^ Fulcher, Ben (April 2008). "Feature Article: Scalar Energy" (PDF). Jeremy (newsletter of the University of Sydney Physics Society). Retrieved 11 November 2011.
  33. ^ http://www.qnet.net/static_files/pdf/FAQBioDisc.pdf
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