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{{short description|Multi-level marketing company}}
{{Infobox Company
{{about|the marketing company|other groups called Cobra|Cobra (disambiguation)}}
| name = The Cobra Group
{{EngvarB|date=September 2018}}
| logo =
{{Use dmy dates|date=September 2018}}
| type = PLC
{{Infobox company
| genre =
| name = The Cobra Group
| foundation = 1986
| logo = ]
| founder = Chris Niarchos
| type = Private
| location_city = ]
| genre =
| location_country = ]
| foundation = 1988
| location =
| founders = Danny Rae<br />and<br />Chris Niarchos<br /><small>Founder and chairman</small>
| locations =
| location_city = ]
| area_served =
| location_country =
| key_people = Chris Niarchos,<br/><small>] and Chairman</small><br/>Michael Hogg, <small>]</small><br/>Richard Davison, <small>]</small><br/>Paul Sanderson,<br /><small>]</small><br/>Mike Blane, <small>Managing Director</small>
| locations =
| industry = ]
| area_served = Global
| products =
| services = | key_people =
| industry = Marketing
| market cap =
| products = ]
| revenue =
| services =
| revenue =
| operating_income = | operating_income =
| net_income = | net_income =
| assets = | assets =
| equity = | equity =
| owner = | owner =
| num_employees = | num_employees =
| parent = | parent =
| divisions = | divisions =
| subsid = | subsid = Appco Group
| homepage = | homepage = {{URL|cobragroup.com/}}
| footnotes = <ref name="businessweek">. '']''. Retrieved on ].</ref>
| intl =
}} }}
'''The Cobra Group''' is a ] 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 a cult, a scam, and a ].<ref name="abc.net.au">{{cite web|url=http://www.abc.net.au/news/2016-10-22/young-workers-launch-class-action-against-appco-marketing-giant/7954586 |title=Appco: Workers launch $85m class action against marketing giant over alleged underpayment, bullying - ABC News (Australian Broadcasting Corporation) |publisher=Abc.net.au |date=2016-10-22 |accessdate=2020-02-28}}</ref>
'''The Cobra Group''' is a sales and marketing company specialising in a variety of ] strategies,<ref name="businessweek"/> including event marketing and face-to-face selling (door to door) in the ] and ] channels.


The company is based in ], ] and ], ] and has an affiliate network of legally independent sales companies in 20 countries throughout Europe and Asia. The Cobra Group represents firms in industries such as ], home security, energy and financial services. The group also services donor acquisitions on behalf of charitable organisations <ref>http://www.savethechildren.net/australia/corporate/cobra/cobra_school.html</ref> <ref>http://www.fundraisingireland.ie/legacyFundraising.html</ref>. 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.<ref>{{cite web | url=http://cmis.dudley.gov.uk/CMIS5/Document.ashx?czJKcaeAi5tUFL1DTL2UE4zNRBcoShgo=HcfZFdfphXNm2fXQt7o918xwEwmJkgU1b5zAKkdUPVccKRLffHn1hw%3D%3D&mCTIbCubSFfXsDGW9IXnlg%3D%3D=hFflUdN3100%3D&kCx1AnS9%2FpWZQ40DXFvdEw%3D%3D=hFflUdN3100%3D&uJovDxwdjMPoYv%2BAJvYtyA%3D%3D=ctNJFf55vVA%3D&FgPlIEJYlotS%2BYGoBi5olA%3D%3D=NHdURQburHA%3D&d9Qjj0ag1Pd993jsyOJqFvmyB7X0CSQK=ctNJFf55vVA%3D&WGewmoAfeNR9xqBux0r1Q8Za60lavYmz=ctNJFf55vVA%3D&WGewmoAfeNQ16B2MHuCpMRKZMwaG1PaO=ctNJFf55vVA%3D | title=The Cobra Group |year=2009}}</ref>


==Criticism==
== Positive and negative responses within the community ==
Common criticism of the Cobra Group and its subsidiaries are that they are cult-like, exploit workers, and run as scams or pyramid schemes. Cobra subsidiary Appco has responded to such criticisms on its official site.<ref>{{cite web| url = http://www.appcogroup.co.uk/about-us/mythbusters| url-status = dead| archive-url = https://web.archive.org/web/20160424034922/http://www.appcogroup.co.uk/about-us/mythbusters| archive-date = 2016-04-24| title = Mythbusters {{!}} Appco Group {{!}} About us}}</ref> When a donor signs up to give money to a charity for 12 months, more than 90 per cent of that money goes to Appco in some cases.<ref>{{cite news |last=Doran |first=Matt |date=19 June 2017 |title=Be careful with your generosity |url=https://www.dailytelegraph.com.au/rendezview/be-careful-with-your-generosity/news-story/bc046a995e9f3fc2c96fca115d91cd3b |work=The Daily Telegraph |location=Sydney |access-date=17 February 2019 }}</ref> Workers in Australia who failed to meet sales targets have been made to perform humiliating rituals involving simulated sex or "slug racing", which involves writhing on their stomachs across the ground.<ref>{{cite news |last=Knowles |first=Lorna |date=18 May 2018 |title='Charity muggers' win first round in Appco class action over alleged exploitation |url=https://www.abc.net.au/news/2018-05-18/charity-muggers-win-round-one-in-appco-class-action/9777046 |work=ABC News |publisher=Australian Broadcasting Corporation |access-date=17 February 2019 }}</ref> The Cobra Group has hundreds of associated companies, often listed separately under different names.


==Investigations==
Although The Cobra Group is known for some contributions towards socially benevolent causes (such as work with '']'', as referenced above), the organisation has also received much negative press, including an investigation by the '']''. Field Representatives working for companies associated with the Cobra group are expected to register as self-employeed and therefore are not considered to be actual employees, hence the use of the term "independent contractors" <ref>http://blogs.mirror.co.uk/investigations/2005/08/just-6-for-eight-days-work-for.html</ref>. In addition to the Daily Mirror article, companies associated with the Cobra Group have faced criticisms from former "]" about the conditions, hours and status of the workers.<ref>http://www.ripoffreport.com/reports/0/211/RipOff0211295.htm</ref><ref>http://www.ripoffreport.com/reports/0/214/RipOff0214262.htm</ref><ref>http://www.ripoffreport.com/reports/0/222/RipOff0222416.htm</ref>
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.<ref>{{cite web | url=http://www.workplacerelations.ie/en/Cases/2007/December/DEC-E2007-072-Full-Case-Report.html | title=DEC-E2007-072 – Full Case Report | date=December 2007}}</ref> The main argument the company used in defending its case was that the worker in question had been a ] ] and not actually an employee of his company. Prior to the dismissal the worker in question had been lauded as the highest ] within Boss Worldwide Promotions Ltd.<ref>{{cite web|last=Shanahan |first=Catherine |url=http://www.irishexaminer.com/archives/2008/0115/world/50000-for-unfairly-dismissed-woman-52617.html |title=€50,000 for unfairly dismissed woman &#124; Irish Examiner |publisher=Archives.tcm.ie |date=15 January 2008 |accessdate=20 March 2012}}</ref>


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 amongst many other deceptive, unethical or illegal practices.<ref name="Chronicle"/> 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.<ref name="Chronicle">{{Cite news|title=North Red Cross Charity collectors probed|date=17 October 2010|first=Coreena |last=Ford|url=http://www.chroniclelive.co.uk/news/north-east-news/north-red-cross-charity-collectors-1421380}}</ref> 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.<ref name="Chronicle"/>
Although the legal definitions may not be technically accurate, some former employees ("independent contractors") of the associated companies have used words such as "]" and "]" to describe the group, and the practises they employ have led to claims of "]" due largely to what is believed to be semi-] use of ] and music. <ref>http://coulsoncorporationscam.wordpress.com/2009/02/20/coulson-corporation-scam-the-hypnosis/</ref><ref>http://www.ripoffreport.com/reports/0/245/RipOff0245020.htm</ref> There is an online Cobra Group notice board featuring ], "success stories" and other promotional material <ref>http://internetmadness.blogspot.com/2009/06/cobra-group-how-it-helped-me-succeed.html</ref>. It is a good example of the positive ] and self promotion used by Cobra Group companies.


The BBC investigation led the ] Energy Select Committee to release a report<ref>{{cite web|author=The Committee Office, House of Commons |url=https://publications.parliament.uk/pa/cm200809/cmselect/cmberr/32/3206.htm |title=House of Commons – Business and Enterprise – First Report |publisher=Parliament of the United Kingdom |date=15 December 2008 |accessdate=20 March 2012}}</ref> threatening to ban energy companies from using ].<ref>{{cite web|url=http://www.marketingweek.co.uk/home/shutting-the-door-on-doorstep-salesmen/2061883.article |title=Shutting the door on doorstep salesmen &#124; Archive |work=Marketing Week |accessdate=20 March 2012}}</ref> Video footage showed Cobra Group contracted companies lying to potential customers.<ref>{{cite web|url=https://www.bbc.co.uk/insideout/south/series4/rogue_salesman.shtml |title=BBC Inside Out – Rogue salespeople |publisher=BBC |date=13 October 2003 |accessdate=20 March 2012}}</ref>
== Companies known to be associated with The Cobra Group==


In 2014, Special Olympics Australia was in financial trouble after the APPCO Group took more than $7 million of about $12 million that had been raised for the charity, leading to an investigation by the then ].<ref>{{cite web |url=https://www.abc.net.au/news/2014-11-25/special-olympics-australia-raids-bank-accounts-of-local-branches/5917370 |title=Special Olympics Australia raids bank accounts of local branches to keep struggling organisation afloat |last1=Worthington |first1=Elise |last2=McClymont |first2=Alison | date= 30 June 2015 |website=ABC News |publisher=Australian Broadcasting Corporation |access-date=9 March 2019}}</ref>


Some of its activities include stopping people in public or going door to door to try to collect money for charities.<ref>{{cite web | url=http://blogs.mirror.co.uk/investigations/2005/08/just-6-for-eight-days-work-for.html | first=Andrew | last=Penman | title=Just £6 for eight days Cobra Group work | date=4 August 2005 | access-date=31 May 2012 | archive-date=5 April 2010 | archive-url=https://web.archive.org/web/20100405093649/http://blogs.mirror.co.uk/investigations/2005/08/just-6-for-eight-days-work-for.html | url-status=dead }}</ref> 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.<ref>{{cite news | title=Global fundraising company keeps $7m of $12.2m raised for Special Olympics | url=https://www.theguardian.com/society/2014/jun/19/global-fundraising-company-keeps-96-of-122m-raised-for-special-olympics | date=19 June 2014 | first1=Saimi |last1=Jeong | first2=Michael | last2=Safi | work=The Guardian | accessdate=17 February 2015}}</ref>
Some of the companies within The Cobra Group are Appco Direct, Appco Energy Direct, Credico, Allsports and Support Direct, Coulson Corporation, Tuscan Marketing, Red Planet Marketing, Causeway Marketing Group, Roar Promotions, Aston Advertising.


A class action alleging the business an illegal pyramid scheme, underpayment and structured humiliation of Appco charity collectors in Australia was launched in October 2016.<ref>{{Cite news|url=https://www.smh.com.au/business/banking-and-finance/lawsuit-throws-spotlight-on-charity-fundraising-20161021-gs7rdf.html|title=Lawsuit throws spotlight on charity fundraising|last=Ferguson|first=Adele|date=21 October 2016|newspaper=The Sydney Morning Herald|access-date=21 October 2016}}</ref><ref name="abc.net.au"/> 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".<ref>{{cite web|url=https://www.smh.com.au/business/former-chuggers-join-class-action-against-appco-alleging-underpayment-of-wages-20161021-gs7mas.html |title=Former 'chuggers' join class action against Appco alleging underpayment of wages |publisher=Smh.com.au |date= 21 October 2016|accessdate=2020-02-28}}</ref>
Few, if any, of the following business are owned outright by The Cobra Group, nor are they necessarily subsidiaries of The Cobra Group, but they do have direct associations with The Cobra Group through various contracts, and essentially are individual business operating under The Cobra Group banner.


==Sponsorship==
Often there will be two or more "companies" operating from the same building, sometimes with separate phonelines. This means that they will have the same basic address and only the name of the company and possibly the phone number will be different.
The Cobra Group (and founder Chris Niarchos) have ] various types of ] drivers since 2003.<ref>{{cite web |url=http://www.motorsportsjournal.com/archives/2008/01/sky_to_sponsor.php |title=Sky To Sponsor Cr Scuderia |work=Motorsports Journal |date=10 January 2008 |accessdate=20 March 2012 |archive-date=3 March 2012 |archive-url=https://web.archive.org/web/20120303073616/http://www.motorsportsjournal.com/archives/2008/01/sky_to_sponsor.php |url-status=dead }}</ref><ref>{{cite web |url=http://www.motorsport.com/news/article.asp?ID=277559&FS=BGTC-- |title=GT: BGTC: Media giant Sky to sponsor CR Scuderia |publisher=Motorsport.com |accessdate=20 March 2012 |url-status=dead |archiveurl=https://web.archive.org/web/20110606080734/http://www.motorsport.com/news/article.asp?ID=277559&FS=BGTC-- |archivedate=6 June 2011 }}</ref> 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 ] in 2007.<ref>{{cite web |url=http://www.crscuderia.com/crs/1-about.php?sectionnumber=1 |archive-url=https://web.archive.org/web/20110708210023/http://www.crscuderia.com/crs/1-about.php?sectionnumber=1 |url-status=dead |archive-date=2011-07-08 |title=crscuderia.com |publisher=crscuderia.com |accessdate=20 March 2012 }}</ref>


==References==
{{Reflist}}


==External links==
*


{{DEFAULTSORT:Cobra Group}}
=== Australia ===
]

]
* VIP W/W
*
*
* Shockwave promotions
* SC Promotions
* Blake
* CDMG Marketing
*
* TCI Group
*

=== England ===

*
*
*
*
* Tuscan Marketing
*
*
* Chilli Corporation
*
*
*
*
*
*
*
*

Note: There are a lot of Cobra branches in London, many that are not listed here.

=== Germany ===

* PHD Marketing
* Primus Enterprises

=== Indonesia ===

*

=== Netherlands ===

*

=== New Zealand ===

* Causeway marketing group
* MPD
* Bond St Marketing
* (Provides services for leading clients in the telecommunications, financial services and public utility companies.)
* (Provides innovative donor acquisition and fundraising for charitable organisations.)
* (Creates cost-effective promotions for clients in the entertainment, hospitality and sporting industries.)
* (Mass distribution of consumer goods throughout NZ)

=== Republic of Ireland ===
* Roar Promotions
* DRG Global
* XR Marketing
* Aston Advertising
*
* HM Firm
* Tippoff Marketing
* Redstone Promotions Ltd.

=== Singapore ===

* Dreamworks Advertising
* Redwoods Advance Pty Ltd
* Dirad Ptd Ltd (Sales Management Executives)
* Asia Pacific Promotion Group
* TML & Associates (Agency Development Officer)
* Asia Pacific Promotion Group Pte Ltd (Regional Management Trainee)
* JYPartnership (Marketing Development Executive/Management)
* EA & Associates (Sales Associates / Recruitment Executive)
* Jeregon International Pte Ltd (Corporate Campaign Executive)

===Spain===

*

=== Sweden ===

* B.A.D Corporation AB
* Southfork the Company AB
* The Draft AB

==References==
{{reflist}}

]
]
]
] ]
]


{{Australia-company-stub}}
{{UK-company-stub}}
{{service-company-stub}}

]

Latest revision as of 12:18, 26 October 2022

Multi-level marketing company This article is about the marketing company. For other groups called Cobra, see Cobra (disambiguation).

The Cobra Group
Cobra Group logo
Company typePrivate
IndustryMarketing
Founded1988
FoundersDanny Rae
and
Chris Niarchos
Founder and chairman
HeadquartersHong Kong
Area servedGlobal
ProductsMulti-level marketing
SubsidiariesAppco Group
Websitecobragroup.com

The Cobra Group is a 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 a cult, a scam, and a pyramid scheme.

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.

Criticism

Common criticism of the Cobra Group and its subsidiaries are that they are cult-like, exploit workers, and run as scams or pyramid schemes. Cobra subsidiary Appco has responded to such criticisms on its official site. When a donor signs up to give money to a charity for 12 months, more than 90 per cent of that money goes to Appco in some cases. Workers in Australia who failed to meet sales targets have been made to perform humiliating rituals involving simulated sex or "slug racing", which involves writhing on their stomachs across the ground. The Cobra Group has hundreds of associated companies, often listed separately under different names.

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. 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.

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 amongst many other deceptive, unethical or illegal practices. 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. 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.

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

In 2014, Special Olympics Australia was in financial trouble after the APPCO Group took more than $7 million of about $12 million that had been raised for the charity, leading to an investigation by the then New South Wales Office of Liquor Gaming and Racing.

Some of its activities include stopping people in public or going door to door to try to collect money for charities. 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.

A class action alleging the business an illegal pyramid scheme, underpayment and structured humiliation of Appco charity collectors in Australia was launched in October 2016. 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".

Sponsorship

The Cobra Group (and founder Chris Niarchos) have sponsored various types of motorsports drivers since 2003. 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.

References

  1. ^ "Appco: Workers launch $85m class action against marketing giant over alleged underpayment, bullying - ABC News (Australian Broadcasting Corporation)". Abc.net.au. 22 October 2016. Retrieved 28 February 2020.
  2. "The Cobra Group". 2009.
  3. "Mythbusters | Appco Group | About us". Archived from the original on 24 April 2016.
  4. Doran, Matt (19 June 2017). "Be careful with your generosity". The Daily Telegraph. Sydney. Retrieved 17 February 2019.
  5. Knowles, Lorna (18 May 2018). "'Charity muggers' win first round in Appco class action over alleged exploitation". ABC News. Australian Broadcasting Corporation. Retrieved 17 February 2019.
  6. "DEC-E2007-072 – Full Case Report". December 2007.
  7. Shanahan, Catherine (15 January 2008). "€50,000 for unfairly dismissed woman | Irish Examiner". Archives.tcm.ie. Retrieved 20 March 2012.
  8. ^ Ford, Coreena (17 October 2010). "North Red Cross Charity collectors probed".
  9. The Committee Office, House of Commons (15 December 2008). "House of Commons – Business and Enterprise – First Report". Parliament of the United Kingdom. Retrieved 20 March 2012.
  10. "Shutting the door on doorstep salesmen | Archive". Marketing Week. Retrieved 20 March 2012.
  11. "BBC Inside Out – Rogue salespeople". BBC. 13 October 2003. Retrieved 20 March 2012.
  12. Worthington, Elise; McClymont, Alison (30 June 2015). "Special Olympics Australia raids bank accounts of local branches to keep struggling organisation afloat". ABC News. Australian Broadcasting Corporation. Retrieved 9 March 2019.
  13. Penman, Andrew (4 August 2005). "Just £6 for eight days Cobra Group work". Archived from the original on 5 April 2010. Retrieved 31 May 2012.
  14. 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.
  15. Ferguson, Adele (21 October 2016). "Lawsuit throws spotlight on charity fundraising". The Sydney Morning Herald. Retrieved 21 October 2016.
  16. "Former 'chuggers' join class action against Appco alleging underpayment of wages". Smh.com.au. 21 October 2016. Retrieved 28 February 2020.
  17. "Sky To Sponsor Cr Scuderia". Motorsports Journal. 10 January 2008. Archived from the original on 3 March 2012. Retrieved 20 March 2012.
  18. "GT: BGTC: Media giant Sky to sponsor CR Scuderia". Motorsport.com. Archived from the original on 6 June 2011. Retrieved 20 March 2012.
  19. "crscuderia.com". crscuderia.com. Archived from the original on 8 July 2011. Retrieved 20 March 2012.

External links

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