11Alive first investigated Beauty Supply Institute in April of this year.
ATLANTA — The Better Business Bureau has issued a consumer alert about a company that 11Alive Investigates reported on earlier this year, saying the company has an “F” rating and isn’t responding to attempts to resolve consumer complaints.
Metro Atlanta based Beauty Supply Institute (BSI) was accused by people in 11Alive’s original investigation of offering business startup services for aspiring beauty supply entrepreneurs — only to take their money and bail on the servicing.
Several people who’d contracted with BSI said they were left essentially bankrupt. One ex-employee told 11Alive he’d seen the company engage in a pattern of mismanagement and misleading promises. That employee, Kino Smith, described a “constant badgering to get the money initially and constant lack of concern in her responses once they had the clients’, you know, money.”
Now this week, the Better Business Bureau has weighed in. It said Beauty Supply Institute has an “F” rating and that it reached out in September to BSI “to request voluntary cooperation” in resolving customer disputes. The company did not respond.
The BBB said it is cautioning consumers about BSI, noting they’ve seen “numerous complaints” filed against the company.
“Complaints filed with BBB allege issues related to contract fulfillment, refund requests, and poor customer service,” a release said. “Consumers report after paying significant fees for BSI’s services — such as lease negotiation, product ordering, and store setup — many are experiencing delays or incomplete services, while others did not receive the promised services at all.”
The bureau reports that it has received complaints from people saying they’ve invested amounts ranging from $2,500 to as much as $87,000 with BSI for the business opportunities that BSI was promising.
“However, numerous consumers claim that BSI failed to deliver the services as advertised and has refused to provide refunds,” the BBB release stated.
The release also notes that BSI is facing legal action in Maryland and offers these tips for anyone considering investing in business opportunities:
- Do your research. Before investing, check the company’s profile on BBB.org and review customer complaints and ratings.
- Verify licensing and registration. Ensure that the company is registered to operate legally in your state and complies with applicable business opportunity regulations.
- Understand the contract. Review the terms of any agreement carefully and ensure that services and timelines are clearly outlined.
- Demand transparent communication. Maintain clear records of all interactions with the company and insist on regular updates regarding timelines and services.
- Beware of high-pressure sales tactics. Be cautious of any company that urges you to make quick decisions or large upfront payments. Reputable companies will give you time to do your research and make a decision.
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