Mr Biram Fall, the Regional General Manager of QNET in Sub-Sahara has called on the legislature to formulate laws that regulate the direct selling industry to prevent the exploitation of citizens.
He said even though direct selling is a global industry worth over $200 billion dollars, there was very little understanding in Ghana about how the business operates, thereby generating disputes between stakeholders and industry players.
Direct selling is the selling of products in a non-retail setting, for example, at home, online, or other venues that are not a store. It eliminates middlemen who are involved in distribution, such as wholesalers and regional distribution centers.
Speaking in Accra on Thursday at the media launch of QNET “Mama Campaign”, an anti-scam initiative to educate the public on the complexities of the direct selling industry, Mr Fall said though that business module had been practiced in Africa for about five decades, there were no laws to regulate its practice.
He said the lack of knowledge and regulations of the business had led to exploitation of some Ghanaians through dubious means.
“Direct selling hit Africa some 50 years ago and surprisingly none of our African countries, nor the governments and law makers have sufficiently looked into this industry and decide to vote laws and find ways of defining it and the roles of every player in this industry”
The campaign also focuses on reinforcing the code of ethics among Independent Representatives (IR) and engaging key stakeholders including government officials on scams to look out for while establishing the legitimacy of QNET as a sustainable business.
The company’s direct business model allows customers to market products by registering as Independent Representatives (IR) who earn commission upon successful sales.
Mr. Fall disclosed that there had been less than five percent of IR’s who had been involved in malpractices.
The company, he said, had acted by carrying out internal investigations, which had often led to the blocking of accounts or suspension of individuals, and in extreme cases, the arrest of culprits.
Unlike Ponzi schemes that focus on the recruitment of persons who commit financial resources, direct selling, Mr Fall stated, created genuine opportunities for individuals to sustain livelihoods through the sale of products for commission.
“QNET is not an investment company, and it does not support any get-rich quick schemes. Rather it is an e-commerce based direct selling company” he said.