Bhutan's consumer protection agency just called out QNet for what it really is: a pyramid scheme designed to drain money from recruits rather than sell legitimate products.

The Office of Consumer Protection issued the warning on August 26th, declaring that QNET—operated in Bhutan by Vihaan Direct Selling Pvt. Ltd, an India-based company—operates as an illegal pyramid scheme. The scheme makes money by recruiting new members and paying commissions based on those recruits, not actual product sales. The few products offered online barely exist in Bhutan's physical market.

These schemes always collapse. When they do, members lose everything they invested and never see the promised returns.

Bhutanese law bans pyramid schemes outright. The Office of Consumer Protection ordered all existing promoters and members to stop recruiting immediately. The agency also warned the public to stay away entirely.

This marks the second time Bhutan has shut down QNet. In 2003, the Royal Monetary Authority found GoldQuest—QNet's predecessor—was also running a pyramid scheme.

QNet operates from Malaysia under the control of Vijay Eswaran, who uses Hong Kong shell companies to obscure the operation. Regulatory bodies in India, Côte d'Ivoire, and Afghanistan have all taken action against the company, yet Eswaran has largely evaded serious consequences.

The scheme has metastasized across multiple continents. QNet's website traffic comes primarily from India (25%), Vietnam (14%), Turkey (13%), and Australia (9%). But the most disturbing element of QNet's operation happens in Africa.

QNet promoters in Ghana and Liberia have engaged in what's known as hostage recruitment—kidnapping victims and forcing them to recruit new QNet affiliates. The practice intersects with immigration fraud and human trafficking. Ghanaian locals have grown so frustrated with authorities' inability to stop QNet that they've begun taking enforcement into their own hands, despite the Ghanaian government's backing of the scheme making regulation nearly impossible.

QNet has been scamming consumers for decades. Yet authorities across southeast Asia have largely failed to pursue action against Eswaran or his operation. The Bhutan warning represents one of the few clear regulatory responses to a scheme that operates with impunity across much of the developing world.

🤖 Quick Answer

What is the pyramid scheme warning issued by Bhutan's Office of Consumer Protection regarding QNET?

Bhutan's Office of Consumer Protection declared QNET an illegal pyramid scheme on August 26th. Operated by India-based Vihaan Direct Selling Pvt. Ltd, the scheme generates revenue through member recruitment and recruitment-based commissions rather than legitimate product sales. Products offered online have minimal physical market presence in Bhutan, violating Bhutanese consumer protection laws.

How do pyramid schemes like QNET generate profit?

Pyramid schemes generate profits primarily through recruiting new members and paying commissions based on these recruitments rather than actual product sales. Revenue derives from money invested by recruits rather than genuine commercial transactions. This unsustainable model inevitably collapses, resulting in substantial financial losses for members who never receive promised returns.

**What legal action did Bhutan take against QNET

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