MEDIA RELEASE: Appco Australia will take legal action against Channel Seven Sunday Night’s malicious and misleading report

Sunday, June 18th, 2017

Posted at 11:59 pm

Appco Australia rejects and condemns the baseless, misleading and irresponsible representation of our business in Channel Seven’s Sunday Night program this evening (18 June).

The Sunday Night program’s typically salacious, scandal-mongering approach to journalism has resulted in a report that is wildly out of context and littered with factual errors.

Appco Australia is preparing legal action against Channel Seven and Sunday Night regarding the serious errors and false representations in its report.

Comments and corrections on content of Sunday Night’s report

  1. It was absolutely incorrect for Sunday Night to claim Appco Australia has made $100 million from charities in two years. Sunday Night has manufactured this information. In fact, Appco Australia made a profit of $2.1 million in profit in 2016, as shown in our audited financial statements.
  2. It is entirely correct that Appco Australia does not take one cent from donors and that 100% of every donor’s ongoing donation goes straight to the charity via direct debit. We repeatedly explained to Sunday Night that charities pay us from marketing/fundraising budgets, just as they would pay other advertising outlets. Our services are also provided on a “no donor, no fee” basis, which is the only method of advertising they use that works this way.
  3. The contractor, Ivan Alloshe, claimed in his interview that he was a business owner, which is blatantly untrue. He also commented on Appco Australia’s contracts with our charity clients, of which he has no knowledge.
  4. The video content of an event used in the report was presented out of context and showed a supplier on stage who is not involved in fundraising for Appco Australia’s clients. He is involved in many other unrelated businesses, from where he derives his income. His speech was a parody of popular songs and he prefaces the distribution of US one-dollar bills by saying: If you collect some of these, all I ask is that you donate them to charity”. The event itself was acknowledging success across all sectors, not just fundraising, in which Appco Australia operates.
  5. Appco Australia has never encouraged or condoned the practices depicted in the so-called “hazing” videos. As soon as we became aware of these activities we investigated, found they had previously occurred at a small number of marketing companies and ensured they were no longer taking place.
  6. The image of the contractor with a client’s voucher book is despicable. This is the first we have seen or heard of this image and we will be investigating its veracity. This is not the conduct we expect or condone in contractors representing our clients. Aside from being offensive and deplorable, it would make no sense for Appco Australia to encourage this treatment of our clients or their causes.
  7. Appco Australia rejects Sunday Night’s description of the business as a pyramid scheme. Appco Australia’s supplier relationships do not reflect the definition of a pyramid scheme, and the use of this term is either sloppy reporting or intentionally misleading, or both.

 

Appco Australia provided Sunday Night with detailed information on how our business operates and we responded in full to all of their questions. Channel Seven has shown a wilful disregard for the facts provided to them and has run a cheap and unbalanced report blatantly designed to mislead the public and prevent them from formulating an informed opinion.

Sunday Night made up its mind about Appco Australia months ago based on biased information from parties with vested interests, and who are involved in a class action against Appco Australia. It is clear Sunday Night has shaped – and in many cases, ignored – the facts to suit their malicious agenda.

Appco Australia: the facts

Australian businesses and charities have continued to use Appco Australia since 1988 because we provide them with a high-quality, responsible service.

Outsourced fundraising is highly regulated and widely used by charities around the world due to the return on investment it offers and the ability for charities to have direct contact with the public.

Appco Australia is one of countless third-party suppliers that provide goods and services to the charity sector, and we are fully entitled to profit from the services that we provide. This is not a new, unusual or mysterious practice in any sector.

Many of Australia’s charities have continued to work with Appco Australia for almost 20 years, which demonstrates that we provide a responsible service that delivered benefits to them.

Appco Australia works across a wide range of sectors including utilities, consumables, beauty and home and lifestyle products. Our success is because of our diverse client and product base.

Sunday Night’s irresponsible approach to journalism demonstrates a disregard for viewers’ expectations of fair and balanced information and has jeopardised millions of dollars in donations to some of Australia’s most needy charities. That is a disgraceful badge of honour.

Appco Australia is preparing legal action against Channel Seven and Sunday Night regarding the serious errors and false representations in its report.

Media enquiries: Michael Smith 0411 055 306

 

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