BEFORE THE IV ADDL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM BENGALURU

1^ST FLOOR, BMTC, B-BLOCK, TTMC BUILDING, K.H ROAD, SHANTHINAGAR, BENGALURU – 560 027.

   28^th DAY OF NOVEMBER 2019

O R D E R

SMT.PRATHIBHA. R.K., PRESIDENT

This complaint is filed by the complainant against the Opposite Party (herein after called as OP) under section 12 of the Consumer Protection Act, 1986.  The complainant prays to direct the OP to refund Rs.2,27,975/- including interest and compound interest for 2 years 4 months, Rs.1,50,000/- towards compensation and Rs.5,000/-  towards travel expenses.

2.      The brief facts of complaint is as under:

Complainant submitted that he came to know about the QNET from his younger brother Mr.Vishwanath, which is a online and E-Commerce direct selling company dealing with various products and services, like vacation packages, health products and supplements, consumer electronics, cosmetics, immune boosting devises (bio disk, chi pendent etc) so on, Globally its known as QNET and in India its website is qnetindia.net and VIHAAN DIRECT SELLING INDI PVT LTD is operating in Bangalore, Karnataka on behalf of QNET.VIHAAN DIRECT SELLING INDI PVT LTD is responsible for all Indian transactions made through qnetindia.net.

The complainant further submitted that Qnetindia.net/OP offered an individual to start their network business by investing amount and buying products.  After successful purchases of company product an individual can become an INDEPENDENT REPRESENTATIVE of qnetindia.net.  After becoming Independent Representative (herein after called as IR) can start doing referral (networking) of their friends, family members, relatives.  When such people start buying products, company will pay the commission to the IR.  Hence complainant convinced the above said network business and invested Rs.2,27,975/- and complainant get the purchase information as here under:

The complainant further submitted that OP has converted INR into E-Cards into complainant brothers IR account by using E-Cards Members & Resort Directory and QVI Club Silver Vacation Club Membership has been purchased through qnetindia.net.  Before purchasing complainant IRship has been created by updating complainant name and address.  The complainant further submitted that after purchase of the said product he has not received the said product, hence complainant informed many times over the phone as well as email to the OP Company regarding the shipment not received by the complainant.  Hence the complainant sent a mail to the OP Company to refund the amount paid by the complainant.  The OP has refused to refund the amount.  As per the policy procedure request should be made within 7 days and IR cancellation request should be made within 30 days.  The complainant further submitted that he is seeking for refund of amount as the OP Company failed to deliver the product.  Hence complainant requested for refund of the amount.  The OP had sent a mail on 19.07.2017 attaching shipment details submitted that they have sent the shipment through courier and the complainant has received the same.  Hence the complainant filed this complaint.

3. In response to the notice issued, OP appeared through their advocate and filed their version in brief as under:

OP submitted that the complainant had willing to join Vihaan Direct Selling (India) Pvt. Ltd., as an “Independent Representative” and applied for the same.  The complainant had signed the terms and conditions and submitted the application form.  The complainant registered with the OP Company to become an “Independent Representative” of Vihaan Direct Selling (India) Pvt. Ltd.  Therefore the complainant will not fall under the purview of Section 2 (d) of the Consumer Protection Act, 1986 complainant is not a buyer or any goods nor he is availed any services.  OP further submitted that as per clause-9 of IR Registration Forum there is no fee refund request to enroll as an IR nor is there any compulsion to buy any products to enroll in business opportunity.

OP further submitted that the email correspondence on behalf of the OP to the complainant display the fact that it was intimated to the complainant that there was no purchase made by the IR number mentioned by the complainant.  The customer receipt that the complainant annexed with the complaint clearly shows that it is a registration confirmation mail wherein upon perusal it is abundantly clear that there has been no money taken from the complainant for the registration process.  The purchase made by the complainant was not coerced but was willfully done by him.  The product has reached the complainant on 28^th July 2015.  It is pertinent to mention that there is no “referral” scheme as mentioned in the complainant by the OP.  This business opportunity does not provide incentives for referrals.

OP further submitted that according to the Direct Selling Guidelines 2016, Clause 1 sub clause 4 defines a ‘Direct Seller’ and clause 1 sub-clause 7 defines a ‘Direct Selling Entity’ the extracts of the same are produced below;

Clause 1(4):

“Direct Seller” means a person appointed or authorized, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake direct selling business on principal to principal basis.

Clause 1(7):

“Direct Selling Entity” means an entity, not being engaged in a pyramid scheme, which sells or offers to sell goods or services through a direct seller.

          OP further submits that no promise has been made to the complainant about any luxury goods upon the complainant becoming the IR of the OP.  Complainant is not a member of the OP but an INDEPENDENT REPRESENTATIVE as mentioned in the IR Application Form that the complainant has perused and accepted the terms and conditions thereof.  Therefore, this Forum has no jurisdiction to hear the case as the complainant is not a consumer or a receiver or services from the OP.

          OP further submits that they have sent the products purchased along with the ID card to the registered address.  The averment that the complainant has not received anything is denied as false as the membership starts when the purchase is made online and there is no need to avail a specific physical card for the purchases made by the complainant.  The complainant filed for a refund two years after the purchase, which was against the company policy and therefore had to be denied.  Further OP submitted that upon perusal of the complaint, it is discernable that the main issue is that the complainant realized that he did not have to purchase anything to become an IR, but since he had made a purchase, this complaint is to arm-twist the OP into refunding his purchase going completely against the company’s rules.  Hence OP prayed for dismissal of the complaint with costs.  

4. In the course of enquiry into the complaint, the complainant has filed affidavit evidence reproducing what he has stated in his complaint.  Complainant and OP has produced certain documents.  Complainant has submitted written arguments.  We have heard the arguments of complainant and OP and we have gone through the oral and documentary evidence of parties scrupulously and posted the case for order.

5. Based on the above materials, the following points arise for our consideration;  

1. Whether the complainant has proved that there is deficiency in service on the part of the OP, if so, whether he is entitled for the relief sought for?

2.  What order?

6. Our findings on the above points are as under:

Point No.1:  In the Negative

Point No.2:  As per the order below

REASONS

7. Point No.1 The main allegation of the complainant is that, complainant had invested Rs.2,27,975/- and got the membership of QNET. on 13.07.2015.  The complainant main allegation is that, the OP contended that they have sent E-Cards, Member Brochures & Resort directory and QVI Club Silver Vacation Club Membership through ARAMEX Couriers.  But the complainant has not received the shipment till 12.10.2016, hence the complainant requested for refund of the amount.

8. On the contrary OP submitted that OP has sent a shipment on 10.07.2015 and deliver the said item to the complainant on 28.07.2015.  The complainant had received the said item through ARAMEX Couriers. 

9. The crux of the matter whether the complainant has received the shipment or not.  As per the documents produced by the OP, it is seen that the OP had sent a shipment on 10.07.2015 and the said item delivered on 28.07.2015 to Sanjeev Ramappa/Complainant.  In the instant case complainant has not made ARAMEX Couriers as a party to this proceedings except making bald allegations against the OP.  The complainant has not produced any other documents.  All that the complainant must have done is to implead ARAMEX Couriers who is a proper & necessary party.  In the absence of ARAMEX Courier Company it is highly unacceptable to believe the statement of the complainant.  Further only on the ground that the complainant has not received the shipment cannot be valuable ground to seek for refund of amount.  Hence on the above facts and circumstances of the case the complainant has failed to prove deficiency of service on the part of OP as alleged in the complaint.  Therefore, the complaint is liable to be dismissed.  Accordingly, we answered the point No.1 in the negative.

10. Point No.2: In the result, for the foregoing reasons, we proceed to pass the following order:          

  O R D E R

The complaint filed by the Complainant is dismissed.  No order as to costs.

 Supply free copy of this order to both the parties.

(Dictated to the Stenographer, transcribed and typed by him, corrected and then pronounced by us in the Open Forum on this, the 28^th day of November 2019)

(ROOPA N.R)                                             (PRATHIBHA R.K)

   MEMBER                                                     PRESIDENT

Witnesses examined on behalf of the complainant by way of affidavit:

Sri.Sanjeev Ramappa Dombar.

Copies of documents produced on behalf of complainant:

Witnesses examined on behalf of the OP by way of affidavit - Nil

Documents produced on behalf of Opposite Party:

(ROOPA N.R)                                             (PRATHIBHA R.K)

   MEMBER                                                     PRESIDENT

Vln*