Direct selling operates in a regulatory grey area across much of Sub-Saharan Africa, where governments lack specific frameworks to govern
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Direct selling operates in a regulatory grey area across much of Sub-Saharan Africa, where governments lack specific frameworks to govern network marketing companies. QNET executives are now advocating for formal legislation that would establish clear rules for the industry while helping consumers identify legitimate businesses versus harmful fraudulent operations.
The advocacy emerged during QNET’s V-Malaysia 2025 conference, where company leadership addressed regulatory challenges facing the direct selling sector across African markets. Rather than avoiding government oversight, QNET executives argue that proper legislation would benefit both consumers and legitimate companies by creating standards that distinguish authentic business operations from pyramid schemes and Ponzi operations.
Trevor Kuna, chief marketing officer of QNET, outlined the regulatory landscape during a press roundtable.
“The absence of a Direct Selling legislation is negatively affecting how the industry operates in many parts of Africa and creating doubts and misconceptions in the minds of many people,” he said. “South Africa has a Direct Selling Association, but many other countries in the sub-Saharan Africa do not have a legislation or association that govern the business of direct selling”
Regulatory Gaps Enable Fraudulent Operations
Countries without Direct Selling Associations face challenges when fraudulent operators exploit well-known company names like QNET to legitimize their schemes. The absence of clear legal definitions allows scammers to operate alongside legitimate businesses while making it difficult for authorities to prosecute appropriate targets.
Kuna explained how legislation could address these problems: “Legislation will help people better understand what the direct selling industry is, responsibilities of companies, buyers and other stakeholders in the industry. This will ensure more clarity and prevent people from scamming or taking undue advantage of others”
Direct Selling Associations typically establish membership criteria that require companies to demonstrate ethical business practices, maintain product quality standards, and provide consumer protection mechanisms including refund policies and complaint resolution procedures. Companies failing to meet these standards can lose membership and legal recognition.
Established Markets Demonstrate Regulatory Benefits
Countries with mature direct selling regulations provide examples of how legal frameworks can protect consumers while enabling legitimate business operations. Malaysia, Singapore, Indonesia, United Arab Emirates, Türkiye, and the Philippines maintain Direct Selling Associations with established codes of conduct that QNET follows in those markets.
Member companies undergo regular compliance reviews and face penalties for violations including membership revocation.
The regulatory approach enables authorities to distinguish between legitimate direct selling and illegal pyramid schemes through specific criteria rather than blanket suspicion of all multi-level marketing activities. Clear definitions help law enforcement target actual fraud while allowing legitimate businesses to operate with greater certainty.
QNET’s advocacy for similar frameworks in African markets reflects confidence in its ability to meet regulatory requirements rather than seeking to avoid oversight that might expose questionable practices.
How Has QNET Responded to Scam Allegations?
QNET has developed a multi-pronged strategy combining legal action, educational campaigns, and direct engagement with authorities to combat allegations while distinguishing legitimate operations from fraudulent activities conducted in its name.
Legal responses include successful court victories that establish precedents against misinformation. For example, the City Civil and Sessions Court of Bangalore issued restraining orders against news portal Organiser.org, requiring immediate removal of defamatory articles and prohibiting further unsubstantiated claims.
Criminal prosecution efforts target individuals exploiting QNET’s brand for fraudulent purposes. Kuna revealed that QNET has aided various West African law enforcement agencies in prosecuting over 150 people for brand misuse-related fraud, and helped nearly 400 victims recover funds or return to their home countries. These prosecutions require substantial legal investment and cooperation with multiple law enforcement agencies.
Educational initiatives operate through comprehensive anti-fraud campaigns across African markets. The “QNET Against Scams” program uses multimedia approaches including billboards, radio announcements, television campaigns, flyer distribution, and digital outreach to help consumers identify common fraud tactics.
The company also established dedicated reporting channels for suspicious activities through its compliance hotline at +233 256 630 005 and email network.integrity@qnet.net.
Media engagement includes hosting African journalists at QNET’s Malaysian headquarters to provide direct access to company facilities and leadership.
Naana Quartey, QNET’s Global Compliance Officer, clarified operational boundaries during one recent media session.
“We don’t offer jobs,” she said. “The direct selling market is based on selling products not on the recruitment of persons. If you want to earn from QNET, you register and sell products and earn a commission.”
Regulatory Frameworks Benefit Multiple Stakeholders
Formal direct selling legislation could create benefits extending beyond individual companies to include consumer protection, market clarity, and economic development opportunities for African countries seeking to attract legitimate business investment.
Consumer benefits include clear guidelines for identifying legitimate business opportunities, standardized protection mechanisms, and established procedures for reporting and resolving complaints. Regulatory frameworks also provide consumers with specific criteria for evaluating direct selling opportunities rather than relying on general skepticism or word-of-mouth assessments.
Government agencies benefit from clear legal definitions that enable appropriate enforcement actions against actual fraud while avoiding interference with legitimate business activities.
Legitimate businesses gain operational certainty and public credibility when operating under established regulatory frameworks. Companies can demonstrate compliance with recognized standards rather than defending against general suspicion of their industry category.
QNET’s advocacy for African regulation reflects broader industry trends where established companies support oversight that validates their business models while exposing fraudulent competitors. The push for regulation represents investment in long-term market development rather than exploitation of current regulatory gaps.
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