The Ministry of Commerce and Investment (MCI) in Saudi Arabia, while continuing to pursue 'illegal' QNet marketing activity, has raided meeting places of the controversial multi-level marketing (MLM) company.
In a release issued on Saturday
, MCI says, “... (the Ministry) inspection teams monitored and detected a QNet group in Najran, holding meetings at one of the hotels in the Southern Region. MCI judicial control officers, in cooperation with the security authorities, started the necessary investigation and then raiding the site, and detecting the involved person. It turns out that every hour QNet representative has a meeting with one group, and he tries to convince the attendants with the prohibited QNet marketing activity. QNet documents were also collected and seized, containing the participant's data, telephone numbers and schedules of QNet marketing activity. Accordingly, the defendant was referred to the public prosecution for taking the legal procedures against him.”
“QNet marketing activity aims to mislead and deceive dealers and clients with quick profit. Therefore, they try to raise money illegally by claiming that they are investing such money. This kind of activity is considered illegal because it depends on deceiving, cheating, fraud and manipulation,” the Ministry says.
Under a resolution, MCI has banned QNet marketing activity in Saudi Arabia. This includes prevention of QNet or Pyramid marketing, and also the prevention of making advertisement or promotion for such activity by any means. This is in addition to the Ministerial Decree issued by the Ministry of Interior, which stipulates that the financial fraud issues are considered crimes punishable by arrest.
As reported by Moneylife
, the strict action by Saudi Arabia, has made QNet to cancel V-Con, its high-profile, flagship annual event that was scheduled to be held in Dubai between 8th to 12th September. The company did not give any reason for the sudden cancellation of V-Con, but thousands of independent representatives (IRs) or agents, who were set to go to Dubai are seeking a refund the $350 each that they have paid to attend the event as well as their air tickets.
On 1 September 2018, the Ministry of Commerce & Investment in Saudi Arabia had issued a warning against QNet
saying that its activities are prohibited in the country. After investigation, it (MCI) had arrested a group of four persons one from Gulf Cooperation Council (GCC), a Saudi citizen and two Saudi women. “The defendants were involved in the coordination and making the necessary arrangements for QNet activities, such as reserving hotel halls and sending invitations to clients to attend the training on QNet marketing activities. Upon raiding the site, MCI inspectors found 20 members of both sexes attending the training, as per the invitation given to them by the four organizers. It has been found out that the attendants have paid more than Saudi Riyal (SR)200,000 in cash or as a remittance to the organizers' bank accounts. This is beside paying SR30 for each attendant,” MCI had said in a release.
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