The Cobra Group

The Cobra Group
Private
Industry Marketing
Founded 1988
Founders Danny Rae
and
Chris Niarchos
Founder and Chairman
Headquarters Hong Kong, Hong Kong
Area served
 Global
Products Multi-level marketing
Subsidiaries Appco Group
Website www.cobragroup.com

The Cobra Group is a controversial door-to-door selling and marketing company headquartered in Hong Kong. Investigations by the media have found that the company promises much larger compensation rates than employees actually receive as commission-only, self-employed workers. It is also criticised for being cult, scam and pyramid scheme.[1][2]

The company has an affiliate network of legally independent sales companies in 25 countries throughout Europe and Asia. The Cobra Group's subsidiaries represent firms in industries such as telecommunications, home security, energy and financial services. The group is also contracted by some charitable organisations to collect donations.[3]

Criticism

Common criticism of companies of Cobra Group are cult, exploiting workers, scam and pyramid scheme.[1][2] Affiliated company Appco responded to the criticism on the official site.[4]

Investigations

A Zimbabwean woman won a legal case against a Cobra Group affiliate for unfair treatment in the workplace. She was awarded €5000 in compensation for "harassment and discriminatory treatment" and €45000 for discriminatory dismissal.[5] The main argument the company used in defending its case was that the worker in question had been a self-employed sole trader and not actually an employee of his company. Prior to the dismissal the worker in question had been lauded as the highest fundraiser within Boss Worldwide Promotions Ltd.[6]

An investigation by the media found that one of The Cobra Group's subsidiaries, The Coulson Organization, which collects charity for the Red Cross among others, has charity collectors take down private financial information without vetting the staff.[7] The company said they ask recruits to detail any criminal histories. The investigative journalist said they were given a badge that indicates they had been vetted, though they had never provided any identification.[7] The journalist was told she would make 35 pounds per sale, but was only actually paid half, unless the donor agreed to make continual donations for six months.[7]

The BBC investigation led the Department for Business, Enterprise and Regulatory Reform Energy Select Committee to release a report[8] threatening to ban energy companies from using direct sales.[9] Video footage showed Cobra Group contracted companies lying to potential customers.[10]

Some of its activities include stopping people in public or going door to door to try to collect money for charities.[11] On 2 June 2014, the New South Wales Office of Liquor, Gaming and Racing announced it would begin an investigation into the conduct of Cobra Group subsidiary Appco over its running of a gift voucher program for Special Olympics Australia.[12]

A class action alleging illegal pyramid scheme, underpayment and structured humiliation of Appco charity collectors in Australia was launched in October 2016.[13][14][15] Lawyer Rory Markham from the Law Firm that is running the class action, has described it as "one of the most systematic and largest underpayment disputes in Australian history, with the victims being young Australians, generous donors, charities and the taxpayers".[16]

Sponsorship

The Cobra Group (and founder Chris Niarchos) have sponsored various types of motorsports drivers since 2003.[17][18] Chris Niarchos, through the Cobra Group, partnered with Andrew Kirkaldy in 2006 to the form the British racing team then known as "AKA Cobra". This partnership led to the formation of CRS Racing in 2007.[19]

See also

References

  1. 1 2 https://www.google.com/search?q=cobra+group+cult+scam
  2. 1 2 https://thedevilcorp.wordpress.com/tag/the-cobra-group-scam/
  3. ↑ "The Cobra Group". 2009.
  4. ↑ http://www.appcogroup.co.uk/about-us/mythbusters
  5. ↑ "DEC-E2007-072 - Full Case Report". December 2007.
  6. ↑ Shanahan, Catherine (2008-01-15). "€50,000 for unfairly dismissed woman | Irish Examiner". Archives.tcm.ie. Retrieved 2012-03-20.
  7. 1 2 3 Ford, Coreena (October 17, 2010). "North Red Cross Charity collectors probed".
  8. ↑ The Committee Office, House of Commons (2008-12-15). "House of Commons - Business and Enterprise - First Report". Publications.parliament.uk. Retrieved 2012-03-20.
  9. ↑ "Shutting the door on doorstep salesmen | Archive". Marketing Week. Retrieved 2012-03-20.
  10. ↑ "BBC Inside Out - Rogue salespeople". Bbc.co.uk. 2003-10-13. Retrieved 2012-03-20.
  11. ↑ Penman, Andrew (4 August 2005). "Just £6 for eight days Cobra Group work".
  12. ↑ Jeong, Saimi; Safi, Michael (19 June 2014). "Global fundraising company keeps $7m of $12.2m raised for Special Olympics". The Guardian. Retrieved 17 February 2015.
  13. ↑ Ferguson, Adele (2016-10-21). "Lawsuit throws spotlight on charity fundraising". The Sydney Morning Herald. Retrieved 2016-10-21.
  14. ↑ http://www.abc.net.au/news/2016-10-22/young-workers-launch-class-action-against-appco-marketing-giant/7954586
  15. ↑ http://www.appcoclassaction.com.au/FAQs.pdf
  16. ↑ http://www.smh.com.au/business/former-chuggers-join-class-action-against-appco-alleging-underpayment-of-wages-20161021-gs7mas.html
  17. ↑ "Sky To Sponsor Cr Scuderia". Motorsports Journal. 2008-01-10. Retrieved 2012-03-20.
  18. ↑ "GT: BGTC: Media giant Sky to sponsor CR Scuderia | News". Motorsport.com. Retrieved 2012-03-20.
  19. ↑ "crscuderia.com". crscuderia.com. Retrieved 2012-03-20.
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