News Summary
The Georgia Attorney General’s Office has issued a directive for the Beauty Supply Institute to cease operations or face a $2.2 million fine. This follows an investigation revealing deceptive practices targeting clients, particularly Black female entrepreneurs seeking to start beauty supply businesses. The findings included exaggerated success claims, excessive fees, and significant financial losses for clients. Despite the ruling, BSI continues to operate online, raising concerns about client communication and restitution opportunities for affected individuals.
Atlanta, Georgia – The Georgia Attorney General’s Office has officially ordered the Beauty Supply Institute (BSI) to either cease all operations or face a hefty fine of $2.2 million. This decision comes after a thorough state investigation into the activities of BSI and its founder, Devin Robinson, which uncovered numerous deceptive practices affecting consumers.
The Assurance of Voluntary Compliance agreement reached between BSI, Robinson, and the state prohibits them from conducting any business within Georgia’s jurisdiction. Additionally, a related company, Derobis Enterprises, is also included in this order. The investigation highlighted that BSI marketed itself as a support platform for individuals aspiring to open beauty supply stores, specifically targeting Black female entrepreneurs.
However, many clients expressed dissatisfaction after being charged thousands of dollars in coaching and consulting fees but receiving only generic business materials in return. Several clients experienced severe financial repercussions, leading some to bankruptcy and home foreclosures due to the high debt amassed while attempting to establish their businesses within the beauty supply industry.
The ongoing investigation revealed a concerning “pattern of deceptive advertising and unfair business practices” that directly violated Georgia’s Fair Business Practices Act. Notable violations included exaggerated success rates for trainees, false endorsements from well-known beauty brands, failure to provide mandatory refunds and disclosures, collection of excessive advance payments before delivering services, and not maintaining required surety bonds or independent escrow accounts.
If Devin Robinson does not comply with the agreement to cease operations, he could face the financial penalty immediately. The total penalty amount was determined based on claims filed by former clients, alongside additional penalties for the various violations uncovered during the investigation. Furthermore, affected former clients may have the opportunity to seek restitution if these violations are upheld in court.
In the past, similar issues were flagged by regulators in Maryland, where a cease-and-desist order against BSI was issued in 2024 for comparable misconduct. Despite the ruling, BSI’s official website remains operational, although clients have reported difficulties with communication due to claims that phone lines are down because of a system upgrade.
Client testimonials from affected individuals depict significant financial losses. For instance, Shalanda Webb received a $500,000 judgment in court but has not yet seen any restitution. Another client, Kenitha Ferguson, reported spending $75,000 on BSI services but was left with an empty store for nearly a year before she could find alternative ways to stock her business.
While BSI maintains its innocence and asserts that it has operated without malice or fraud, citing client delays as a consequence of health issues and growth challenges, the agreement reached does not compel BSI or Robinson to admit any wrongdoing. Instead, it serves as a mechanism to enforce compliance moving forward.
Consumer protection attorneys have criticized BSI’s practices, describing the situation as exploitative, particularly towards vulnerable communities. Promises of entrepreneurship empowerment have ultimately led to significant debt and disappointment for many aspiring business owners.
The future of the Beauty Supply Institute hangs in the balance as the enforcement of this order continues to unfold, leaving numerous aspiring entrepreneurs seeking answers and restitution for their investments.
Deeper Dive: News & Info About This Topic
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Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
