Atlanta Beauty Supply Company Fights Lawsuits Amid Accusations Of Scamming From Scorned Customers

Beauty Supply Institute was ordered by Maryland to stop taking clients in the state.

An Atlanta-based beauty supply company accused of scamming clients with the promise of helping them launch a store is fighting back against lawsuits.

Beauty Supply Institute (BSI) has faced accusations from dozens of customers who claim the company left them penniless in their pursuit of entrepreneurship. Customers paid the Institute to help launch beauty supply businesses, signing lease agreements to secure a store location and acquire products.

However, many say they never received the necessary items to officially open. The issue has resulted in financial chaos—including bankruptcies and home foreclosures—for many who paid tens of thousands to BSI.

One woman, Kenitha Ferguson, is still fighting for the Institute to take accountability for loss.

“They [were] in full control of everything as far as shipments, inventory, setting up your vendor account, the whole nine,” Ferguson told 11Alive.

Georgia’s Office of the Attorney General confirmed it is investigating the matter.

Ferguson soon discovered others had experienced the same lackluster help from the Institute. BSI had promised guidance and mentorship to the aspiring business owner. It initially claimed that vendor and scheduling issues led to shipment delays.

“I actually was Googling, you know, BSI scams, and it popped up from Atlanta,” continued Ferguson. “I clicked on your story, and I was like, ‘wow, that’s me.’”

BSI founder Devin Robinson said the company has not engaged in fraudulent activity and has threatened legal action against those who proclaim otherwise.

He ahas filed a motion to have Ferguson’s lawsuit against the company dismissed. In the meantime, BSI has seemingly shut down operations, with its Metro Atlanta office closed and phone lines temporarily disconnected. The state of Maryland had previously ordered the company to stop taking clients this year.

Georgia courts must now decide if there was a breach of contract between BSI and angry customers like Ferguson.