Help! I'm in trouble for exposing a scam at school!

[Robyne_K]

What is the name of your state (only U.S. law)? TEXAS


I'm a cosmetology student, and recently my school has become involved (exactly on what level, I'm not sure) with an anti-aging health and beauty aide company that sells cosmetics, nutritional supplements, and related accessories. This is also a Multi-Level Marketing company that enlists independent distributors to market their product and image (quite like Avon).

I first heard about this company while attending my school's annual hair show, as they were one of the many vendors. Since then, some of my instructors began distributing their products, primarily a face care system and galvanic current facial machine.

One day in our weekly Theory class, my head instructor had us watch an advertisement video, then tried selling us on the products and suggested we sign up as distributors. I asked a lot of questions he had no answers to, said it sounded like a BS pyramid scheme, and made him pretty mad. I was called "negative" and "pessimistic" by my instructors. After class that evening, I went home and did some research, found out it was exactly as I suspected, and the next day privately told my instructors what I'd learned. They had no rebuttal.

I left it at that, even after witnessing more sales pitches and product demonstrations outside of the classroom, on the salon floor. I stated my opinion to fellow students who asked, but didn't try to confront or "call out" anyone. I bit my tongue and minded my business until another incident occurred in my Theory class.

This time, the director of the school subjected all of us to a 2-hour long sales pitch for this company, instead of that time being used to teach Beauty Theory as intended. The director was a skilled salesman, and gave very little opportunity for questions or comments. I was not able to say anything contradicted her. I sat there the whole time feeling angry that I was paying these people to be forced to watch an infomercial, and angry that my fellow students were all being taken advantage of so egregiously. I suspect that the owner of my school is now receiving commissions from each student he gets to sign up as a distributor, though I have no proof yet.

I decided to put my research and opinions in writing, hoping to open the eyes of at least some of my peers and keep them from throwing away their money. I spent a week writing a report that explained the uses and benefits of facials, galvanic currents, and different facial cosmetics. I listed the ingredients and cost of this company's primary face care system, and explained what each product actually does versus what it's advertised to do. I talked about the Free Radical Theory of Aging and how the jury is still out on the benefits of anti-oxidants. I also addressed the issue of multi-level marketing. It was simply a truthful, factual, and rational look at these things, and really not that controversial.

I distributed 16 copies of this report to students and instructors at my school. I did not ask for permission to do so because I didn't think it was necessary, and there is no written rule saying I can't. Nothing in the report is untrue, I cited all my sources, and I made a clear distinction between the facts and my opinion (which is more than this company does).

Now the director has forbid me from clocking hours until I discuss this with her. I'm trying to get my defense together before I talk to her, as I anticipate threats of expulsion or contract revocation. I already know not to sign anything, but I worry about incriminating myself verbally.

I need to know if they are legally allowed to:

1. Forbid me from clocking hours for this, considering I pay to attend
2. Use classroom time to solicit products or contracts for MLM plans
3. Let instructors sell products that are not endorsed by the school
4. Suspend, expel, or otherwise discipline me for distributing this literature

I'm asking for help wherever I can get it, but I don't know quite where to turn. Does anyone reading this have any resources for me? Any advice?

I'm trying to get my ducks in a row as quickly as possible, because the longer I wait, the longer I have to miss hours.

I hope I covered everything well enough, but it's a long, complicated story. I will answer any questions!


Thank you!


- RKH

 

[FlyingRon]

I suspect we're talking a private institution here. The answer to all those things is the school can do what they want and discipline or not discipline you or the instructors as they see fit.

 

[fraudwatch]

No, your school should not be engaging in MLM on your time/dime, unless that is somehow written into their rules or contract. You enrolled to get an education/training, correct?
If the schools director on down is involved with aggressively pushing and recruiting their MLM agenda on school time, you can seek advice and/or file a complaints with the Texas Cosmetology Commission which investigates complaints against schools, and with the schools accreditation board, if they are accredited.

As far as suspension etc, I guess they could do anything, call you disruptive or whatever, but you still have a complaint.

Sounds like the school is out of control.

 

[Hot Topic]

What is the name of your state (only U.S. law)? TEXAS


I'm a cosmetology student, and recently my school has become involved (exactly on what level, I'm not sure) with an anti-aging health and beauty aide company that sells cosmetics, nutritional supplements, and related accessories. This is also a Multi-Level Marketing company that enlists independent distributors to market their product and image (quite like Avon).

I first heard about this company while attending my school's annual hair show, as they were one of the many vendors. Since then, some of my instructors began distributing their products, primarily a face care system and galvanic current facial machine.

One day in our weekly Theory class, my head instructor had us watch an advertisement video, then tried selling us on the products and suggested we sign up as distributors. I asked a lot of questions he had no answers to, said it sounded like a BS pyramid scheme, and made him pretty mad. I was called "negative" and "pessimistic" by my instructors. After class that evening, I went home and did some research, found out it was exactly as I suspected, and the next day privately told my instructors what I'd learned. They had no rebuttal.

I left it at that, even after witnessing more sales pitches and product demonstrations outside of the classroom, on the salon floor. I stated my opinion to fellow students who asked, but didn't try to confront or "call out" anyone. I bit my tongue and minded my business until another incident occurred in my Theory class.

This time, the director of the school subjected all of us to a 2-hour long sales pitch for this company, instead of that time being used to teach Beauty Theory as intended. The director was a skilled salesman, and gave very little opportunity for questions or comments. I was not able to say anything contradicted her. I sat there the whole time feeling angry that I was paying these people to be forced to watch an infomercial, and angry that my fellow students were all being taken advantage of so egregiously. I suspect that the owner of my school is now receiving commissions from each student he gets to sign up as a distributor, though I have no proof yet.

I decided to put my research and opinions in writing, hoping to open the eyes of at least some of my peers and keep them from throwing away their money. I spent a week writing a report that explained the uses and benefits of facials, galvanic currents, and different facial cosmetics. I listed the ingredients and cost of this company's primary face care system, and explained what each product actually does versus what it's advertised to do. I talked about the Free Radical Theory of Aging and how the jury is still out on the benefits of anti-oxidants. I also addressed the issue of multi-level marketing. It was simply a truthful, factual, and rational look at these things, and really not that controversial.

I distributed 16 copies of this report to students and instructors at my school. I did not ask for permission to do so because I didn't think it was necessary, and there is no written rule saying I can't. Nothing in the report is untrue, I cited all my sources, and I made a clear distinction between the facts and my opinion (which is more than this company does).

Now the director has forbid me from clocking hours until I discuss this with her. I'm trying to get my defense together before I talk to her, as I anticipate threats of expulsion or contract revocation. I already know not to sign anything, but I worry about incriminating myself verbally.

I need to know if they are legally allowed to:

1. Forbid me from clocking hours for this, considering I pay to attend
2. Use classroom time to solicit products or contracts for MLM plans
3. Let instructors sell products that are not endorsed by the school
4. Suspend, expel, or otherwise discipline me for distributing this literature

I'm asking for help wherever I can get it, but I don't know quite where to turn. Does anyone reading this have any resources for me? Any advice?

I'm trying to get my ducks in a row as quickly as possible, because the longer I wait, the longer I have to miss hours.

I hope I covered everything well enough, but it's a long, complicated story. I will answer any questions!


Thank you!


- RKH

Your problem is that you distributed copies of your report without permission because you claim that you didn't think it was necessary. I think that, considering the circumstances, you knew very well that what you did was going to cause trouble. But you didn't care. You were going to "enlighten" people.

The school director was obviously fine with devoting class hours to delivering her "pitch."

Rehearse what you're going to say before you say it. Stay calm. This is not the time to go charging into battle.

 

[commentator]

The state regulatory board is the way to go on this, I suggest you begin asking them questions immediately. The problem is that most schools of this type have students who are receiving PELL grants and has those whose training courses are being paid for by several different federal and state grants and training funds. As such, they are legally obligated to teach what they say they will teach in the contracts that are set up with the government, and not to become pyramid schemes or sole source selling grounds for certain cosmetic programs. They can, of course, do this, but not if they want to continue accepting students and receiving monies from the government to teach the students receiving grants.

 

[Searchertwin]

First of all she needs to let it go. You will not persuade other students to see your side. They will have to learn it on their own. Money makes them blind, especially if they make it sound so easy.

Part of the course involves selling. So yes, they can conduct any amount of hours toward "selling".
Part of the course involves different products that are used in the beauty business. So yes, they can use the product as an example.


Can they push the students to sign up? No
Can they suggest that this would be a good business to get into? Yes
It will be up to the students if they want to or not.

I agree with commentator, that if she feels this strongly to send a letter to the state board of cosmetology.

 

[Searchertwin]

I need to know if they are legally allowed to:

1. Forbid me from clocking hours for this, considering I pay to attend
2. Use classroom time to solicit products or contracts for MLM plans
3. Let instructors sell products that are not endorsed by the school
4. Suspend, expel, or otherwise discipline me for distributing this literature


Answer to your questions:
1) Until the matter is closed and you have reached an agreement on the matter, you clock in.
2a) Yes, part of your course is "selling"
2b) They can only "offer" not force one to sign
3) Yes - part of the business is selling products and making money. Part of your course is this.
4) Depends on how the instructor read that paper. She might find it offensive. She might find it discriminating. You never know about people.
As stated, your best answer will have to come from the State Board of Cosmetology.