The Georgia Attorney General’s Office has ordered the Beauty Supply Institute (BSI) to shut down or face a $2.2 million fine after investigators found the company misled aspiring entrepreneurs—many of them Black women—through its business training programs.
According to 11Alive, the order comes after a months-long state investigation into BSI and its founder, Devin Robinson. “According to Fulton County court records, the state entered into an Assurance of Voluntary Compliance agreement with Beauty Supply Institute and its founder Devin Robinson,” the outlet reported. The agreement also applies to a related company, Derobis Enterprises, and prohibits Robinson from continuing to do business in Georgia.
BSI marketed itself as a platform for helping individuals open their own beauty supply stores. Investigators said the company charged thousands of dollars in coaching and consulting fees but failed to deliver the promised services. Instead, clients reportedly received generic business materials and little support in launching their stores.
The attorney general’s office uncovered “a pattern of deceptive advertising and unfair business practices” under Georgia’s Fair Business Practices Act. Officials said BSI exaggerated the success rates of its trainees and falsely implied endorsements from major beauty brands.
Consumer protection attorney Jasmine Carter said that such cases “prey on people’s dreams. They promise empowerment, but what many get is debt and disappointment.”
If Robinson fails to comply with the agreement, he could face the full financial penalty immediately. The attorney general’s office said former clients may be eligible for restitution if the court upholds the violations.
In 2024, Maryland regulators reportedly issued a similar cease-and-desist order against BSI for the same conduct described in the Georgia case. The company’s official website remains active despite the ruling.