Arbonne, a cosmetics business promoted in Britain by the wife of Seventies heartthrob David Cassidy, is to be investigated by Trading Standards.
It has been referred by watchdog Consumer Direct for possible breaches of laws on pyramid selling.
Sue Cassidy spent last week in the UK drumming up new recruits and urging sales consultants to sign up friends and family.
At Wentworth, Surrey, on Tuesday, Cassidy claimed that Arbonne, with sales of £226 million in 2009, was ‘a rocket heading for the stratosphere’ and urged the 250 audience to join her for the ride.
Consultants, who must spend up to £2,000 on product samples, stationery, a website and promotional material, are urged to concentrate on recruiting more consultants.
While they earn commission on sales, the emphasis appears to be on recruiting. This is in contrast with business models such as Avon.
Gordon Fraser, Arbonne’s UK vice-president, said: ‘Pyramid selling is illegal and we have systems to ensure people are not doing it.’
Photo from Klim Levene