QNet, Oriflame and and fifteen MLM corporations have obtained fraud warnings from India’s Central Shopper Safety Authority (CCPA).
As reported by MoneyLife on December thirteenth;
The Central Shopper Safety Authority (CCPA) has issued discover to 17 entities that had been discovered violating Shopper Safety (Direct Promoting) Guidelines, 2021.
Of those, 13 entities are presently below investigation and reply from three of the entities is awaited, the CCPA says.
Qnet has been cited as Vihaan Direct Promoting (India) Pvt Ltd, the shell firm QNet makes use of to function India.
Oriflame is cited as Oriflame India Pvt Ltd. The opposite fifteen MLM corporations seem like native entities I’m not conversant in.
The CCPA says some fraudulent entities misuse the direct promoting mannequin to advertise unlawful pyramid or cash circulation schemes.
“These entities usually make unrealistic guarantees of excessive commissions, overseas journeys, entrepreneurship, excessive returns and rich future, contingent on recruiting others, which violates client belief and established legal guidelines, thereby exposing shoppers to a fraudulent pyramid and cash circulation schemes.”
QNet, Vihaan Direct Promoting India and founder Vijay Eswaran (proper), have a protracted historical past of fraud in India.
As documented in BehindMLM’s 2017 QNet evaluate;
- in 2013 the EOW froze a number of financial institution accounts tied to QNet;
- in 2014 the EOW secured an order prohibiting Vihaan Direct Promoting from working in India;
- in 2016 the Delhi EOW registered its first legal compliant towards QNet and Vihaan Direct Promoting;
- Vihaan Direct Promoting India majority shareholder Michael Ferreira was arrested in 2016; and
- QNet founder Vijay Eswaran, a Malaysian nationwide, is needed by Indian authorities
Since then;
Authorities corruption apart, regardless of the above Indian authorities appear unable to rid the nation of QNet as soon as and for all.
As of November 2024, SimilarWeb was monitoring ~344,000 month-to-month visits to QNet’s web site. India, usually the most important supply of QNet web site visitors, has slipped to 3rd place (down 29% month on month).
Changing Indian QNet victims we now have shoppers being recruited in Russia (21%) and Turkey (19%).
Oriflame is a Swedish MLM firm based in 1967. Oriflame markets private care, dietary dietary supplements and attire merchandise.
According to Oriflame’s “pay to play” enterprise mannequin, it’s assumed CCPA’s Oriflame fraud warning pertains to pyramid recruitment over retail gross sales.
At time of publication SimilarWeb was not monitoring India as a prime supply of visitors to Oriflame’s web site.