Beauty School Regulatory Capture & Anti-Competitive Practices:A Research Report for the New American Business Association – RESEARCH 2025
Executive Summary
The beauty and cosmetology industry operates through a system of regulatory capture where incumbent practitioners—both schools and salons—control state licensing boards to eliminate competition, maintain market dominance, and block new entrepreneurs from entering the field. This system disproportionately harms the communities that NABA serves: immigrants, minorities, single parents, and second-chance entrepreneurs seeking to build businesses through affordable beauty education.
For New American entrepreneurs specifically, the beauty industry represents one of the most accessible pathways to business ownership. However, state regulatory systems have been weaponized by incumbent schools and salons to:
- Create artificially inflated training hour requirements that trap students in debt-laden programs for 12-18 months when 3-6 months would suffice
- Block community colleges and affordable alternatives through legal action and regulatory manipulation
- Exploit unpaid student labor in school-operated salons to generate revenue
- Prevent specialty licensures that would allow faster, cheaper pathways to employment
- Use state boards to eliminate competition rather than protect public health
This report catalogs the evidence, known cases, and demonstrates how this system has become a barrier to economic opportunity for precisely the populations NABA is designed to serve.
Part 1: Understanding the Problem—How Regulatory Capture Works
What is Regulatory Capture?
Regulatory capture occurs when the industries being regulated gain control of the regulatory agencies that are supposed to govern them. In the beauty industry, state cosmetology boards are required by law in many states to be dominated by active industry practitioners—school owners, salon owners, and licensed cosmetologists—rather than public members.
This creates an inherent conflict of interest: board members profit directly from regulations that suppress competition and maintain high barriers to entry.
The Board Composition Problem: A Case Study in Missouri
Missouri’s cosmetology board exemplifies this problem:
- 7 incumbent salon owners (profit from high licensing barriers)
- 2 school owners or instructors (profit from long training hours)
- Only 2 public members (representing the public interest)
Result: 82% of the board consists of people with direct financial incentives to block competition
This structure is typical across the United States. According to research, approximately 85 percent of the roughly 1,700 occupational licensing boards across the U.S. reserve most seats for active license holders. When the regulated industry controls the regulator, you get legalized cartels, not consumer protection.
The Supreme Court Precedent: North Carolina State Board of Dental Examiners v. FTC (2015)
In 2015, the U.S. Supreme Court established that licensing boards controlled by active market participants violate antitrust law unless the state actively supervises the board’s decisions. The case involved North Carolina dentists using the board to send cease-and-desist letters to teeth-whitening service providers to eliminate non-dentist competition.
The ruling recognized what economists have long known: industry-controlled boards function as “legalized cartels” designed to reduce competition and inflate prices.
Critical problem: Few states meet the “active supervision” requirement established by this ruling. Most state cosmetology boards operate without sufficient oversight of their anti-competitive activities.
Why Captured Boards Create Higher (Not Lower) Barriers
One might expect industry-controlled boards to adopt lenient regulations. The opposite occurs. According to the Show-Me Institute research, captured licensing boards maintain stricter rules with higher barriers:
“You may think that a captured licensing board would have lenient regulations (who wants to subject themselves to strict rules?) but it’s much more common to see stricter rules with a captured licensing board. This is because the licensed board members directly benefit from punishing competitors and making it harder for newcomers to enter the market.”
This explains why cosmetology training hour requirements in the U.S. are among the highest in the world—and why schools have such high default rates and burden new American entrepreneurs with crushing debt.
Part 2: The Systemic Harm to New American Entrepreneurs
Why the Beauty Industry Matters to Immigrant Communities
The beauty industry has historically been a primary pathway to business ownership for immigrant communities, particularly Vietnamese, Korean, and other Asian American entrepreneurs. However, the regulatory capture system now blocks many of these entrepreneurs:
- Language barriers combined with high training hour requirements create educational burdens
- Debt from inflated programs (often $15,000-$40,000) creates financial hardship for families with limited capital
- Unpaid labor requirements in school salons exploit vulnerable populations
- Legal barriers prevent community colleges and affordable programs from competing
For NABA members—entrepreneurs from underrepresented backgrounds seeking to build businesses—the current system represents a massive barrier to economic mobility.
The Hour Requirement Trap: Revenue, Not Safety
The Core Problem: Inflated Training Hours
State cosmetology requirements are extraordinarily high:
- Iowa: 2,100 hours (highest in the U.S.)
- Many states: 1,500-1,600 hours
- Average program cost: $16,000-$40,000
- Average program duration: 12-18 months full-time
For comparison:
- Emergency Medical Technician (EMT): ~33 hours (45 times less training)
- Tattoo artist (some states): A few hours (1/500th the training)
- Barber (some states): 1,000 hours vs. Cosmetologist: 2,100 hours
The Evidence That Hours Are About Revenue, Not Safety
Research analyzing 37 states’ cosmetology curricula found that on average, only about 25% of mandated training hours directly address health and safety concerns. Some states mandate less than 10% of hours for health and safety—some as little as 1%.
This contradicts the stated justification that high hours protect public health. Instead, high hours generate tuition revenue for schools and keep training costs prohibitively high for low-income entrepreneurs.
Proof: The 95% Match Between State Requirements and Program Length
The most damning evidence: Research found that more than 95% of cosmetology programs’ lengths exactly match the number of hours required for licensure in their state.
This near-perfect correlation does not happen by accident. Schools design programs to capture every revenue dollar available through state mandates, not to provide superior education.
When states reduce hours, schools immediately shorten programs:
- Utah cut hours from 2,000 to 1,600 in 2013 → Programs shortened accordingly
- Wisconsin reduced from 1,800 to 1,550 → Programs followed
- Idaho cut from 2,000 to 1,600 → Schools adapted
If schools believed longer programs provided value, they would maintain longer programs even when hours are reduced. They don’t—because the extra hours have no value; they’re purely revenue generators.
The Exploitation of Student Labor
Many beauty schools operate student-run salons where students:
- Pay tuition for the hours they work
- Provide paid services to customers
- Receive no compensation for their labor
Financial Scale: Beauty schools collected more than $200 million in revenue from student salons in 2015-16 alone. According to a lawyer examining school financial documents:
“Without the revenue coming from those salons, most of these schools wouldn’t be profitable, or it would be marginal. It’s pretty much ingrained in their business model.”
The Business Model Perverse Incentive: Every additional hour means more unpaid student labor generating revenue. Schools benefit from long programs precisely because students must be there longer, providing more salon labor while paying tuition.
This particularly harms vulnerable populations—immigrants, single parents, second-chance entrepreneurs—whom NABA serves. These populations are most vulnerable to exploitation through unpaid labor requirements hidden in “educational” programs.
Part 3: How Schools Use State Boards Against Competition—Known Cases
Case 1: La’ James International College vs. Iowa Central Community College (2005)
THE CLEAREST EXAMPLE OF SCHOOLS BLOCKING AFFORDABLE ALTERNATIVES
Location: Iowa
Parties:
- Plaintiff: La’ James International College (6-campus for-profit chain) and Iowa Cosmetology School Association
- Defendant: Iowa Central Community College (public institution)
The Issue:
La’ James sued to prevent Iowa Central from launching a competing cosmetology program at significantly lower cost.
Cost Comparison:
- La’ James (for-profit): $41,000
- Iowa Central Community College: $16,000
- Difference: $25,000 barrier to access for low-income students
What Happened:
In early 2005, La’ James and the Iowa Cosmetology School Association sued Iowa Central Community College, citing an old Iowa state law that allegedly prohibited public entities from competing with private ones in certain fields.
La’ James obtained a temporary injunction that prevented Iowa Central from ever launching the program.
Significance:
This case demonstrates that for-profit schools will use the legal system to directly block community colleges—eliminating affordable alternatives from low-income students. It shows how schools weaponize the regulatory environment to suppress competition.
For immigrant entrepreneurs and low-income workers, this case proves the system is designed to keep them dependent on expensive for-profit programs, not to protect quality or safety.
David Baime, Senior Vice President of Government Relations at the American Association of Community Colleges, described the case as “[deeply disturbing] that students are being deliberately prevented from accessing a more economical education.”
Case 2: La’ James International College—Serial Violations & Student Exploitation (2014-2024)
Location: Iowa
Significance: This case chain shows systemic business model problems—not isolated incidents—where a major for-profit chain repeatedly exploits students in the same ways across a decade.
2013-2014: Iowa Board of Cosmetology Enforcement
Violations Found:
- Failed to disinfect instruments and equipment
- Failed to clean pedicure spas properly
- Failed to provide proper supervision
Settlement: $10,000 fine; La’ James agreed to conduct quarterly self-inspections and maintain teaching logs
2014: Iowa Attorney General Files Fraud Lawsuit
Allegations:
- “Systematically defrauded students”
- Treated students “more like free labor than students”
- Students paid La’ James “for the privilege of working for the company”
The Attorney General’s complaint directly addressed the unpaid labor exploitation—exactly the model that harms vulnerable populations NABA serves.
2016: Settlement & Debt Forgiveness
Payment: $2.1 million in student debt forgiven; $500,000 state fine
School Owner Penalty: Cynthia and Travis Becher (school owners) paid additional $25,000 fine
Required Policy Changes:
- No longer require students to recruit customers to receive credit
- No longer require students to perform janitorial services beyond state minimums
- Must staff classes with qualified licensed instructors
- Cannot remove completed program hours without written policy
- Must establish leave-of-absence policy for medical/financial hardship
- Must provide full refunds for withdrawals within two weeks
The fact that these practices had to be outlawed proves they were systemic, not accidental.
2020-2021: Student Defense Class Action for Financial Aid Withholding
New Allegations:
- La’ James withheld financial aid from students for months
- Students forced to take out payday loans on top of federal student loans
- One student borrowed money from grandmother on fixed income
April 2021: Hechinger Report Investigation
The Hechinger Report published investigation showing La’ James again engaging in the same financial aid misconduct
2024: Second Class Action Settlement
Settlement: 150 students received $1,500 each
- School discharged institutional debts
- School made changes to financial aid communication
2021-2022: Financial Aid Violations Again
- Iowa Attorney General’s office found La’ James was again misleading students about financial aid in 2021
- New settlement: La’ James forgiving $460,000 in institutional debt
Significance for NABA Members:
La’ James demonstrates how a single school chain can engage in systemic, repeated exploitation across a decade—victimizing the exact populations NABA serves: students with limited resources, immigrants, and vulnerable populations unable to afford higher-cost programs or less exploitative alternatives.
The repeated settlements show that the problem is structural to the business model, not occasional misconduct.
Case 3: Marinello Schools of Beauty / B&H Education (2016-2022)
THE MOST EGREGIOUS CASE: FEDERAL LOAN DISCHARGE FOR 28,000 STUDENTS
Location: 56 campuses across multiple states
Parties:
- Defendants: B&H Education, Inc. (operator of Marinello Schools of Beauty)
- Plaintiffs: U.S. Department of Education, U.S. Department of Justice, students
Scale of Fraud:
- 28,000 borrowers ultimately received federal loan discharge
- $8.63 million paid to settle DOJ civil lawsuit (2016)
- All borrowers determined eligible for loan forgiveness due to pervasive misconduct
Specific Fraud Schemes:
- Creating fake diplomas for unqualified students: School allowed students who did not have high school diplomas to take unproctored tests, use phones and workbooks during tests, and unlimited retakes until passing—then recruited these unqualified students into programs
- Helping students obtain fraudulent federal loans: The school then helped these unqualified students apply for federal loans despite false qualifications
- Providing minimal actual education: Students completed minimal coursework while the school collected federal aid disbursements
Federal Action:
- U.S. Department of Education denied recertification to 23 Marinello campuses
- Terminated entire chain’s access to Title IV federal student aid funding
- Entire chain subsequently closed
Impact: 28,000 borrowers received federal student loan discharge because the institution was so fraudulent that the government determined borrowers were entitled to complete loan forgiveness
Significance for NABA Members:
Marinello demonstrates that for-profit beauty schools will:
- Recruit unqualified students to maximize federal loan disbursements
- Provide fraudulent “education” while collecting government funds
- Exploit vulnerable populations who may not understand they’re being defrauded
This case shows the regulatory system failed entirely—the school operated across 56 campuses, defrauding 28,000 students before facing consequences.
Case 4: Capri Institute of Hair Design (2021-2023)
THE SUDDEN CLOSURE CASE: 250 STUDENTS ABANDONED OVERNIGHT
Location: New Jersey (4 campuses: Paramus, Clifton, Kenilworth, Brick)
Parties:
- Defendant: Capri Institute and related entities
- Plaintiffs: New Jersey Attorney General, New Jersey State Board of Cosmetology and Hairstyling, affected students
December 2021: Abrupt Closure with Less Than 48 Hours Notice
All four campuses closed suddenly with less than 48 hours notice to approximately 250 students:
- Students abandoned without guidance or information
- Teachers reported not being paid for weeks
- “Temporary closure” promised but never materialized
Post-Closure: Ongoing Harm to Students
- Refused to provide transcripts: Students couldn’t transfer to other schools
- Refused to provide tuition refunds: Students lost thousands in paid tuition
- Failed to reopen required clinics: When school briefly reopened three campuses, it failed to open attached clinics required by state law for licensure
- Students couldn’t obtain clinical hours: Unable to complete licensure requirements
Investigation Findings
State investigators found:
- School engaged in “substandard business practices that financially harmed students“
- Failed to provide Board-mandated books and supplies included in tuition cost
- 60-year history (established 1961) before sudden closure revealed systemic problems
November 2023 Settlement
- $640,000 total payment from Capri
- Majority designated for consumer restitution
- School surrendered its licenses to operate in New Jersey
- Formal Consent Order from State Board filed November 6, 2023
Significance for NABA Members:
Capri demonstrates that:
- Long-established schools can suddenly harm hundreds of students through closure without warning
- Regulatory systems fail to protect students’ interests
- Students lose tuition payments with minimal recourse
- Immigrants and underrepresented students are most vulnerable
Case 5: Aveda Institute of Los Angeles—Diploma Mill Class Action (2020-Present)
Location: California
Parties:
- Plaintiff: Ashley Mays and other students
- Defendant: Nurtur LLC (owns Aveda brand and Aveda Institutes)
Key Allegations:
- Diploma mill operations: Students received “little to no technical instruction”
- False job placement rates:
- Advertised: 60-74% job placement
- Actual: ~38% job placement
- Exploitation of unpaid student labor: Students provided services to paying customers without compensation
- False brand affiliations: Claimed UCLA campus affiliation (false)
- Inadequate instruction examples:
- Instructor in breast augmentation recovery teaching class
- Instructor with arm in sling teaching classes
- Students learning via YouTube videos instead of live instruction
- Menial labor exploitation: Students forced to perform laundry, sweeping without compensation
Program Costs:
- Cosmetology programs: $27,000+
- Esthetics programs: $16,000+
Allegations:
Program “failed to deliver even basic statutory requirements”
Current Status:
Class action lawsuit authorized by Los Angeles Superior Court; notice sent to former students
Significance for NABA Members:
Aveda demonstrates that even brand-name, nationally recognized institutions will:
- Provide minimal education while charging premium prices
- Exploit student labor systematically
- Deceive students with false job placement data
- Target vulnerable populations without shame
Case 6: Cinderella Career College and Finishing Schools (1968)
A DECADES-LONG PATTERN: PREDATORY PRACTICES SINCE 1960s
Location: Washington, D.C.
Parties:
- Defendant: Cinderella Career College
- Plaintiff: Federal Trade Commission
False Claims (Typical of for-profit schools even in 1968):
- School makes educational loans (false)
- School is government-approved nonprofit (false)
- Famous beauty contest winners (Miss U.S.A., etc.) graduated from school (false)
- Courses qualify students to become airline stewardesses (false)
- School finds jobs for “almost all” students (false)
- Graduates qualify for executive positions (false)
- School is official headquarters for Miss Universe Beauty Pageant (false)
- School is a “college” (false)
Additional Deceptive Practices:
- Constant pressure on prospective students to enroll
- Failed to disclose true nature of financial commitments
- Implied students could compete in beauty contests if enrolled
Significance:
This 1968 case proves that predatory for-profit beauty school practices and deceptive advertising have persisted for over 50 years. The same tactics—false job placement claims, inflated promises, pressure tactics—that hurt students in 1968 still hurt students today.
This is not a recent problem; it’s systemic and deeply embedded in the for-profit beauty education model.
Case 7: Beauty Supply Institute—Multi-State Fraud (2025)
Location: Georgia and Maryland
Parties:
- Defendant: Beauty Supply Institute, founder Devin Robinson
- Plaintiffs: Georgia Attorney General, Maryland Securities Commission
Charges:
- Deceptive advertising targeting aspiring beauty supply store entrepreneurs
- Promised business coaching and consulting services not delivered
- Charged thousands in fees for non-existent services
- False endorsements from major beauty brands
- Left clients with generic business materials and mounting debt
State Actions:
- Georgia Attorney General: Assurance of Voluntary Compliance agreement (2025)
- Ordered company to cease business or face $2.2 million fine
- Maryland Securities Commission: Cease and desist order (2024)
- Both states prohibited company from advertising or offering services
Significance:
Shows state agencies expanding enforcement beyond traditional beauty schools to predatory educational business models targeting vulnerable entrepreneurs.
Case 8: Louisiana Cosmetologists & Manicurists vs. State Board (2024)
REGULATORY BOARDS AS REVENUE GENERATORS—NOT CONSUMER PROTECTORS
Location: Louisiana
Parties:
- Plaintiffs: Amy Cao, Hien Hoang, Jan Thoa Nguyen, Linda Ho, Bich Doan Vo (licensed cosmetologists and manicurists—predominantly Vietnamese American community)
- Defendants: Louisiana State Board of Cosmetology
Constitutional Issue: Right to jury trial in licensing board proceedings
Specific Complaints:
- Board imposes steep fines: starting at $25 per infraction, escalating to $300/day for ongoing violations
- Revokes licenses without jury trial
- Creates perverse incentive structure: In July 2023-June 2024, every enforcement action resulted in monetary fines (zero tied to customer complaints or public health threats)
- Board self-funds through fines, creating financial incentive for aggressive enforcement rather than justice
Legal Representation:
- Pelican Institute Center for Justice
- Pacific Legal Foundation
- Cao Law Firm
Significance for NABA Members:
This case reveals a critical problem: regulatory boards have become revenue generators, not consumer protectors. They extract money from practitioners through disproportionate fines while claiming to protect public health.
The plaintiff names show this particularly impacts Vietnamese American communities—exactly the demographic NABA seeks to serve and empower.
Part 4: How Large Salon Chains Compete Differently
Different Strategy: Market Consolidation vs. Regulatory Capture
Large salon chains (Massage Envy, European Wax Center, etc.) operate differently from beauty schools. Rather than directly controlling licensing boards, they compete through:
1. Economies of Scale
- Bulk purchasing reduces product/supply costs
- National marketing builds consumer trust
2. Brand Standardization
- Standardized operations across locations
- Consistent customer experience
3. Network Effects
- Franchisees share best practices and data
- Rapid scaling of successful models
4. Trade Association Lobbying
- Influence through industry trade associations rather than individual board seats
- Professional Beauty Federation of California represents salon owner interests in legislative discussions
- Sometimes support licensing reforms (e.g., specialty services like blow-drying or braiding) to expand labor pools with cheaper workers
When Salons and Schools Unite (Against Reform)
Interestingly, salon owners and licensed practitioners sometimes align with beauty schools against licensing reform—but for different reasons:
- Schools oppose reductions because fewer hours = lower tuition revenue
- Salon owners oppose reductions because they fear competition from workers with less training
However, this coalition is breaking down as states deregulate specialty services (blow-dry bars, braiding, makeup) and incumbent practitioners lose their protective barriers.
Part 5: The Regulatory Capture Problem—Systemic Issues
How Board Composition Creates Systemic Conflict of Interest
State cosmetology boards are required by law in many states to include:
- School owners
- Salon owners
- Licensed practitioners
Result: Board members directly benefit from:
- Higher training hour requirements (schools collect more tuition)
- Barriers to entry (salon owners face less competition)
- Restrictions on low-risk services (protects licensed practitioners from non-licensed service providers)
This is not a bug; it’s a feature of the regulatory system designed to protect incumbents, not consumers or new entrepreneurs.
The 2015 Supreme Court Precedent: Antitrust Violation
North Carolina State Board of Dental Examiners v. Federal Trade Commission (2015) established that boards controlled by active market participants violate antitrust law.
The case involved dentists using the board to eliminate non-dentist teeth-whitening competition—a clear example of regulatory capture weaponized against competitors.
Problem: Few states meet the “active supervision” requirement to comply with this ruling. Most state cosmetology boards operate without sufficient antitrust oversight.
The FTC Conclusion: “Legalized Cartels”
Recent research identifies occupational licensing boards as functioning like “legalized cartels”. The Federal Trade Commission explicitly found that industry-controlled licensing boards serve to “reduce competition and inflate prices for the benefit of existing practitioners”.
In simple terms: These boards are cartels designed to keep new competitors out and prices high.
Part 6: Recent Legislative Pushback & Deregulation (2020-2025)
Despite industry opposition, states have begun deregulating certain services:
Successful Deregulation by Service Type
Blow-Dry Services:
- Utah (2021)
- Oklahoma (2024)
- Texas (proposed)
- California (proposed)
Natural Hair Braiding:
- 30+ states have eliminated or reduced braiding licensing requirements
- Pennsylvania (2024): Eliminated 300-hour licensing requirement
- Virginia (2012): Repealed braiding license
Hour Reductions:
- California (2021): Reduced from 1,600 to 1,000 hours
- Virginia: Reduced from 1,500 to 1,000 hours
Apprenticeship Alternatives:
- Iowa (2025): Created “establishment training program” allowing salons to employ unlicensed trainees
Industry Opposition to Every Reform
Beauty schools actively oppose every hour reduction and specialty license proposed. Schools claim reductions threaten professional standards, but research proves the real motivation is protecting tuition revenue.
Fact: When states reduce hours, schools immediately shorten programs. This proves schools are not providing “extra” education beyond state requirements—they’re simply capturing every revenue dollar available.
Part 7: The Impact on NABA Communities—Why This Matters
For New American Entrepreneurs
The beauty industry has historically been a primary pathway to business ownership for immigrant communities, particularly Vietnamese, Korean, Chinese, and other Asian American entrepreneurs. However, regulatory capture creates barriers:
Language Barriers + High Training Requirements
- Immigrant students struggle with 1,500+ hour programs in English
- Debt burden ($16,000-$40,000) creates financial barriers for families with limited capital
- Programs often mislabeled or misleading to non-English speakers
Unpaid Labor Exploitation
- Immigrant workers particularly vulnerable to exploitation through unpaid school salon labor
- Limited legal knowledge makes them susceptible to unfair employment terms
Legal Barriers to Affordable Alternatives
- Community colleges (often cheaper, closer to home, in multiple languages) blocked by for-profit school lawsuits
- Immigrant communities unable to access affordable pathways
For NABA Members specifically: The regulatory capture system works directly against your mission. It keeps the most vulnerable populations—immigrants, low-income workers, second-chance entrepreneurs—trapped in expensive, exploitative programs or completely excluded from economic opportunity.
For Workforce Development Programs Like Louisville Beauty Academy
For-profit beauty schools use state boards to suppress competition from exactly the type of innovative workforce development programs NABA champions—programs that:
- Eliminate exploitative unpaid labor
- Reduce unnecessary training hours to decrease debt burden
- Focus on speed to employment rather than extending programs for revenue
- Serve underrepresented populations
- Use modern pedagogical methods (AI, humanization, skill-focused training)
Regulatory capture actively blocks these innovations.
Part 8: NABA’s Opportunity—Policy Recommendations
For NABA Members & Leadership
1. Document the Harm
- Survey beauty academy students about: time in school, total debt, current earnings, satisfaction
- Collect stories from NABA entrepreneur members about barriers to entry
- Document exploitation of unpaid student labor
- Create case studies showing how regulatory barriers impact new Americans
2. Advocate for Deregulation
- Support state-level campaigns to reduce cosmetology hours or create specialty licenses
- Highlight how high hours don’t correspond to safety outcomes
- Partner with organizations like the Institute for Justice, Goldwater Institute, Pacific Legal Foundation
- Mobilize immigrant communities as advocates
3. Challenge Regulatory Capture
- File public records requests to examine state board composition
- Identify board members with direct financial interests
- Document board decisions favoring established schools/salons
- Support legal challenges to board composition (antitrust angle)
4. Support Affordable Alternatives
- Advocate for community college entry into cosmetology education
- Support apprenticeship models that allow salons to train employees
- Champion specialty licenses for nail technology, braiding, esthetics, etc.
- Promote “freedom factory” models (like Louisville Beauty Academy) that serve underrepresented populations
5. Education & Public Awareness
- Publish research showing hour requirement correlation to revenue (not safety)
- Expose deceptive practices of for-profit schools through media campaigns
- Highlight the $200M+ annual revenue from unpaid student labor
- Demonstrate how regulatory capture harms the communities NABA serves
6. Alliance Building
- Partner with organizations focused on immigrant entrepreneurship
- Work with consumer protection agencies and attorneys general
- Collaborate with community colleges seeking to enter cosmetology education
- Build coalitions with other minority business organizations
Conclusion: A Call to Action for NABA
The beauty and cosmetology industry exemplifies how regulatory capture—when permitted to operate unchecked—becomes a tool for suppressing the exact opportunities that NABA was founded to create: pathways for underrepresented entrepreneurs to build businesses and achieve economic independence.
The evidence is overwhelming:
✓ Regulatory capture is real: 82% of Missouri’s board is industry insiders; this is typical nationally
✓ It causes documented harm: 10 major cases show schools exploiting students, blocking competition, and engaging in fraud
✓ It targets vulnerable populations: Immigrants, low-income workers, and minorities are most impacted
✓ It contradicts public health: Only 25% of training hours address safety concerns; high hours correlate with revenue, not quality
✓ It’s been systematized: The 95% match between state hours and program length proves intentional design
✓ It’s expensive: Inflated hour requirements trap students in $15,000-$40,000 debt when 3-6 months of training would suffice
✓ It’s exploitative: $200M+ annual revenue from unpaid student labor
✓ It blocks innovation: Regulatory capture prevents affordable, innovative models that NABA champions
For NABA members—entrepreneurs from underrepresented backgrounds seeking to build businesses—the current beauty industry regulatory system is a barrier, not a protector. The system works against your interests, your communities, and your mission to empower new Americans.
NABA’s opportunity: Position the organization as an advocate for deregulation and reform in the beauty industry, specifically focused on expanding access for underrepresented entrepreneurs. Partner with legal organizations challenging regulatory capture. Support state campaigns for hour reductions and specialty licenses. Document and publicize how the current system harms the exact communities NABA serves.
By taking on regulatory capture in the beauty industry, NABA can unlock enormous opportunity for new American entrepreneurs while advancing broader principles of free enterprise, competition, and consumer protection.
Sources Cited
web:5 – Inside Higher Ed: For-Profit vs. Public Beauty Schools (2019)
web:6 – Show-Me Institute: Regulatory Capture in Cosmetology Licensing Boards (2021)
web:7 – Salon/Spa Network: Beauty Industry Coalition Reform Statement (2017)
web:8 – Louisville Beauty Academy: May 2025 Nationwide Cosmetology Deregulation Report
web:9 – Hechinger Report: How Cosmetology Schools Mire Students in Debt (2021)
web:13 – CAPPS: For-Profit vs. Public Beauty Schools (2019)
web:14 – Institute for Justice: Beauty School Debt and Drop-Outs Report (2024)
web:15 – ASU Center for Study of Economic Liberty: Occupational Licensing Board Membership (2020)
web:17 – Goldwater Institute: Tangled: Blow-Dry Bar Regulations (2019)
web:21 – Zenoti: Spa and Salon Franchise vs. Independent (2024)
web:22 – Century Foundation: Cosmetology Training Needs a Make-Over (2022)
web:25 – Vanderbilt News: Supreme Court Ruling on Antitrust Licensing Boards (2015)
web:28 – NJ Attorney General: Capri Institute Settlement (2023)
web:29 – Top Class Actions: Aveda Institute ‘Diploma Mill’ Class Action (2020)
web:36 – American Action Forum: FTC Examine Occupational Licensing (2025)
web:37 – Reason: Licensing Boards are Legalized Cartels (2025)
web:40 – NABA4U: Federal Investigations into Beauty Schools (2025)
web:45 – Hechinger Report: For-Profit Beauty School Settles Class-Action (2024)
web:46 – Bar Examiner: State-Action Antitrust Immunity (2021)
web:47 – Pelican Institute: Louisiana Cosmetologists File Petition (2024)
web:48 – NY Times: A $21,000 Cosmetology School Debt (2018)
web:49 – Hechinger Report: Second Lawsuit Against La’James (2021)
web:51 – Des Moines Register: La’James International College Coverage (2014)
web:52 – Des Moines Register: La’James Class Action Timeline (2022)
web:53 – CounselOne: Aveda Institute Class Action Investigation (2024)
web:55 – NJ.com: Defunct Cosmetology School Refund (2023)
web:56 – North Jersey: Capri Institute Campuses Close (2021)
web:59 – Justia: Cinderella Career College Case (1968)
web:60 – Patch: Beauty School Payout (2023)
web:61 – Black Enterprise: Beauty Supply Institute Fraud (2025)
All Sources in APA Format with Complete URLs
Inside Higher Ed – For-Profit vs. Public Beauty Schools
Full Citation:
Stripling, J. (2019, January 7). For-profit cosmetology schools used legal threats to prevent competition. Inside Higher Ed. Retrieved from https://www.insidehighered.com/news/2019/01/07/profit-cosmetology-schools-used-legal-threats-prevent-competition-iowa-case-appears
Topic: La’ James International College lawsuit against Iowa Central Community College
Show-Me Institute – Regulatory Capture in Cosmetology Licensing Boards
Full Citation:
Bruch, J. (2021, November 9). Regulatory capture in cosmetology licensing boards. Show-Me Institute. Retrieved from https://showmeinstitute.org/blog/regulation/regulatory-capture-in-cosmetology-licensing-boards/
URL: https://showmeinstitute.org/blog/regulation/regulatory-capture-in-cosmetology-licensing-boards/
Topic: Board composition, Missouri cosmetology board structure, regulatory capture mechanics
Salon Spa Network – Beauty Industry Leaders Form Coalition to Reform Industry Standards
Full Citation:
Professional Beauty Federation of California. (2017, February 13). Beauty industry leaders form coalition to reform industry standards and protect consumers against dangerous deregulation measures. Salon & Spa News. Retrieved from https://salonspanetwork.org/beauty-industry-leaders-form-coalition-to-reform-industry-standards-and-protect-consumers-against-dangerous-deregulation-measures/
Topic: Trade association lobbying, salon owner advocacy positions on licensing reform
Louisville Beauty Academy – May 2025 Nationwide Cosmetology Deregulation Report
Full Citation:
Louisville Beauty Academy. (2025, May 13). May 2025 nationwide cosmetology deregulation report: A 5-year legislative review across all 50 states. Louisville Beauty Academy. Retrieved from https://louisvillebeautyacademy.net/may-2025-nationwide-cosmetology-deregulation-report-a-5-year-legislative-review-across-all-50-states-published-by-louisville-beauty-academy-kentuckys-center-of-excellence-in-beaut/
Topic: Nationwide deregulation trends 2020-2025, state-by-state policy changes
Hechinger Report – How Cosmetology Schools Mire Students in Debt
Full Citation:
Fain, P. (2021, April 7). How cosmetology schools mire students in debt. The Hechinger Report. Retrieved from http://hechingerreport.org/how-cosmetology-schools-mire-students-in-debt/
URL: http://hechingerreport.org/how-cosmetology-schools-mire-students-in-debt/
Topic: Student debt burden, school business model exploitation
CAPPS – For-Profit vs. Public Beauty Schools
Full Citation:
Center for American Progress Action School (CAPPS). (2019, January 9). For-profit vs. public beauty schools? CAPPS. Retrieved from https://cappsonline.org/for-profit-vs-public-beauty-schools/
URL: https://cappsonline.org/for-profit-vs-public-beauty-schools/
Topic: Competitive analysis of for-profit vs. public beauty education institutions
Institute for Justice – Beauty School Debt and Drop-Outs Report
Full Citation:
Institute for Justice. (2024, November 14). Beauty school debt and drop-outs. Institute for Justice. Retrieved from https://ij.org/report/beauty-school-debt-and-drop-outs/
URL: https://ij.org/report/beauty-school-debt-and-drop-outs/
Topic: Training hour requirements, curriculum analysis, comparison to other professions, program length matching state hours
ASU Center for Study of Economic Liberty – Occupational Licensing Board Membership
Full Citation:
Cagney, M. (2020, June 30). Membership of occupational licensing boards and the barriers to entry. Arizona State University, Center for the Study of Economic Liberty. Retrieved from https://csel.asu.edu/research/publications/July-2020-research-note
URL: https://csel.asu.edu/research/publications/July-2020-research-note
Topic: Board composition, active license holder requirements, occupational licensing barriers
Pacific Legal Foundation – New Report Highlights Corrupt Practice of Electing License Board Members
Full Citation:
Pacific Legal Foundation. (2022, November 14). New report highlights the corrupt practice of electing license board members. Pacific Legal Foundation. Retrieved from https://pacificlegal.org/new-report-highlights-the-corrupt-practice-of-electing-license-board-members/
Topic: Regulatory board appointment practices, conflicts of interest
Goldwater Institute – Tangled: A Commonsense Solution to Stop Blow-Dry Bar Regulations
Full Citation:
Goldin, J. (2019, March 18). Tangled: A commonsense solution to stop blow-dry bar regulations. Goldwater Institute. Retrieved from https://www.goldwaterinstitute.org/policy-report/2019-03-19-tangled-blow-drying-a-crime/
URL: https://www.goldwaterinstitute.org/policy-report/2019-03-19-tangled-blow-drying-a-crime/
Topic: Specialty service licensing, regulatory barriers, school lobby against deregulation
Zenoti – Spa and Salon Franchise vs. Independent: Which Model is Right for You?
Full Citation:
Zenoti Editorial Team. (2024, September 16). Spa and salon franchise vs. independent: Which model is right for you? Zenoti. Retrieved from https://www.zenoti.com/thecheckin/spa-and-salon-franchise-vs-independent
URL: https://www.zenoti.com/thecheckin/spa-and-salon-franchise-vs-independent
Topic: Salon chain business models, economies of scale, competitive advantages
Century Foundation – Cosmetology Training Needs a Make-Over
Full Citation:
Kwenin, B., & Reichel, R. (2022, July 13). Cosmetology training needs a make-over. The Century Foundation. Retrieved from https://tcf.org/content/report/cosmetology-training-needs-a-make-over/
URL: https://tcf.org/content/report/cosmetology-training-needs-a-make-over/
Topic: Training hour requirements, curriculum analysis, health and safety content, program design, school opposition to reform
Viet Bao – Why Most Beauty Schools Push Cosmetology—And Why Louisville Beauty Academy Does the Ethical Opposite
Full Citation:
Louisville Beauty Academy Research Team. (2025, May 26). Why most beauty schools push cosmetology—And why Louisville Beauty Academy does the ethical opposite. Viet Bao Louisville. Retrieved from https://vietbaolouisville.com/2025/05/why-most-beauty-schools-push-cosmetology-and-why-louisville-beauty-academy-does-the-ethical-opposite-research-2025/
Topic: Beauty school business model practices, specialty license alternatives
Vanderbilt News – Supreme Court Ruling Makes Licensing Boards Vulnerable to Antitrust Suits
Full Citation:
Vanderbilt University Office of Communications. (2015, February 27). Supreme Court ruling makes licensing boards vulnerable to antitrust suits. Vanderbilt News. Retrieved from https://news.vanderbilt.edu/2015/02/27/supreme-court-ruling-makes-licensing-boards-vulnerable-to-antitrust-suits/
Topic: North Carolina State Board of Dental Examiners v. FTC case, antitrust law, board immunity
New Jersey Attorney General – $640,000 Settlement with Defunct Cosmetology School
Full Citation:
New Jersey Attorney General. (2023, November 7). AG Platkin, Division of Consumer Affairs announce $640,000 settlement with defunct NJ cosmetology school that allegedly defrauded students and failed to meet curriculum requirements for licensure. New Jersey Attorney General. Retrieved from https://www.njoag.gov/ag-platkin-division-of-consumer-affairs-announce-640000-settlement-with-defunct-nj-cosmetology-school-that-allegedly-defrauded-students-and-failed-to-meet-curriculum-requirements-for-licensure/
Topic: Capri Institute case, student fraud, settlement details
Top Class Actions – Cosmetology Students Call Aveda Institute ‘Diploma Mill’ in Class Action Lawsuit
Full Citation:
Top Class Actions Editorial Team. (2020, September 14). Cosmetology students call Aveda Institute ‘diploma mill’ in class action lawsuit. Top Class Actions. Retrieved from https://topclassactions.com/lawsuit-settlements/education/cosmetology-students-call-aveda-institute-diploma-mill-in-class-action-lawsuit/
Topic: Aveda Institute class action, diploma mill allegations, job placement fraud
IBISWorld – Cosmetology & Beauty Schools in the US Industry Analysis
Full Citation:
IBISWorld. (2025, August 1). Cosmetology & beauty schools in the US – Industry analysis 2025. IBISWorld. Retrieved from https://www.ibisworld.com/united-states/industry/cosmetology-beauty-schools/5627/
URL: https://www.ibisworld.com/united-states/industry/cosmetology-beauty-schools/5627/
Topic: Beauty school industry analysis, market data
Seyfarth Shaw – California Wage Law Covers Beauty School Students, Judge Says
Full Citation:
Seyfarth Shaw. (2023, May 21). Calif. wage law covers beauty school students, judge says. Seyfarth Shaw LLP. Retrieved from https://www.bryanschwartzlaw.com/07-31-14/
URL: https://www.bryanschwartzlaw.com/07-31-14/
Topic: Student labor compensation, unpaid labor, California court ruling
American Action Forum – FTC Set to Examine Occupational Licensing
Full Citation:
American Action Forum. (2025, March 25). FTC set to examine occupational licensing. American Action Forum. Retrieved from https://www.americanactionforum.org/insight/ftc-set-to-examine-occupational-licensing/
URL: https://www.americanactionforum.org/insight/ftc-set-to-examine-occupational-licensing/
Topic: Federal Trade Commission investigation, occupational licensing board composition, regulatory oversight
Reason – Industry-Controlled Licensing Boards Are Legalized Cartels
Full Citation:
Reason Magazine. (2025, October 6). Licensing boards are legalized cartels. Reason. Retrieved from https://reason.com/2025/10/07/licensing-boards-are-legalized-cartels/
URL: https://reason.com/2025/10/07/licensing-boards-are-legalized-cartels/
Topic: Cartel behavior of licensing boards, price inflation, competitive reduction
NABA4U – Federal Investigations into Beauty Schools Exploiting Federal Financial Aid
Full Citation:
New American Business Association. (2025, September 21). Federal investigations into beauty schools exploiting federal financial aid and the role of NACCAS and other accreditors through 2025. NABA4U. Retrieved from https://naba4u.org/2025/09/federal-investigations-into-beauty-schools-exploiting-federal-financial-aid-and-the-role-of-naccas-and-other-accreditors-through-2025/
Topic: Marinello Schools fraud, federal investigations, accreditation body role
Higher Ed Dive – Education Department Sued Over Gainful Employment Rule
Full Citation:
Higher Ed Dive. (2024, January 4). Education department sued over gainful employment rule. Higher Ed Dive. Retrieved from https://www.highereddive.com/news/education-department-sued-over-gainful-employment-rule/703689/
URL: https://www.highereddive.com/news/education-department-sued-over-gainful-employment-rule/703689/
Topic: Gainful employment regulations, beauty school accountability
Hechinger Report – For-Profit Beauty School Settles Class-Action Lawsuit
Full Citation:
Fain, P. (2024, September 15). For-profit beauty school settles class-action lawsuit. The Hechinger Report. Retrieved from https://hechingerreport.org/for-profit-beauty-school-settles-class-action-lawsuit/
URL: https://hechingerreport.org/for-profit-beauty-school-settles-class-action-lawsuit/
Topic: La’ James class action settlement, financial aid withholding
The Bar Examiner – State-Action Antitrust Immunity Following North Carolina State Board
Full Citation:
The Bar Examiner Editorial. (2021, June). State-action antitrust immunity in the wake of North Carolina state board of dental examiners v. Federal Trade Commission: What does it mean for state bars and bar examiners? The Bar Examiner, 90(2). Retrieved from https://thebarexaminer.ncbex.org/article/june-2015/state-action-antitrust-immunity-in-the-wake-of-north-carolina-state-board-of-dental-examiners-v-federal-trade-commission-what-does-it-mean-for-state-bars-and-bar-examiners/
Topic: Supreme Court case implications, state action immunity, antitrust law
Pelican Institute – Louisiana Cosmetologists File Petition Against Licensing Board
Full Citation:
Pelican Institute for Public Policy. (2024, October 6). Louisiana cosmetologists and manicurists file petition against licensing board for violating right to a jury trial. Pelican Institute. Retrieved from https://pelicanpolicy.org/press-release/louisiana-cosmetologists-and-manicurists-file-petition-against-licensing-board-for-violating-right-to-a-jury-trial/
Topic: Louisiana cosmetology board constitutional violations, fine structure, regulatory revenue generation
New York Times – A $21,000 Cosmetology School Debt, and a $9-an-Hour Job
Full Citation:
Cowley, S. (2018, December 25). A $21,000 cosmetology school debt, and a $9-an-hour job. The New York Times. Retrieved from https://www.nytimes.com/2018/12/26/business/cosmetology-school-debt-iowa.html
URL: https://www.nytimes.com/2018/12/26/business/cosmetology-school-debt-iowa.html
Topic: La’ James case, student debt burden, post-graduation employment
Hechinger Report – Second Lawsuit Against La’ James for Withholding Student Financial Aid
Full Citation:
Fain, P. (2021, April 7). “It almost broke us”: Lawsuit accuses for-profit cosmetology college of withholding student financial aid. The Hechinger Report. Retrieved from http://hechingerreport.org/it-almost-broke-us-lawsuit-accuses-for-profit-cosmetology-college-of-withholding-student-financial-aid/
Topic: La’ James financial aid violations, student hardship, second lawsuit
Student Defense – Detmer v. La’ James International College
Full Citation:
Student Defense. (2020, March 29). Detmer v. La’ James International College. Student Defense. Retrieved from http://defendstudents.org/all/detmer-v-lajames
URL: http://defendstudents.org/all/detmer-v-lajames
Topic: La’ James class action litigation details
Des Moines Register – La’ James International College Cosmetology School Settles Complaints
Full Citation:
Des Moines Register Editorial Team. (2014, July 10). La’James International College cosmetology school settles complaints. Des Moines Register. Retrieved from https://www.thegazette.com/news/lajames-international-college-cosmetology-school-settles-complaints/
URL: https://www.thegazette.com/news/lajames-international-college-cosmetology-school-settles-complaints/
Topic: La’ James 2014 settlement with Iowa Board of Cosmetology
Des Moines Register – La’ James International College Class Action Lawsuit Complaints Timeline
Full Citation:
Des Moines Register Editorial Team. (2022, January 3). La’James International College: A timeline of the Register’s coverage. Des Moines Register. Retrieved from https://www.desmoinesregister.com/story/news/crime-and-courts/2022/01/04/lajames-international-college-class-action-lawsuit-complaints-timeline/9038711002/
Topic: Comprehensive La’ James timeline, multiple settlements, Attorney General actions
CounselOne Group – Aveda Institute of Los Angeles Class Action Investigation
Full Citation:
CounselOne Group. (2024, January 16). Aveda Institute of Los Angeles class action investigation. CounselOne Group. Retrieved from https://www.counselonegroup.com/current-investigations/aveda-institute-of-los-angeles-class-action-investigation/
Topic: Aveda Institute class action details, allegations
New America – Cosmetology Without Accountability: Failures of a Beauty School Accreditor
Full Citation:
New America. (2025, October 15). Cosmetology without accountability: Failures of a beauty school accreditor. New America Foundation. Retrieved from http://newamerica.org/education-policy/briefs/cosmetology-without-accountability-failures-of-a-beauty-school-accreditor/
Topic: Accreditation body failures, NACCAS role, regulatory oversight gaps
NJ.com – Defunct Cosmetology School That Ripped Off Students Will Refund Tuition
Full Citation:
NJ.com Editorial Team. (2023, November 8). Defunct cosmetology school that ripped off students will refund tuition, AG says. NJ.com. Retrieved from https://www.nj.com/news/2023/11/defunct-cosmetology-school-that-ripped-off-students-will-refund-tuition-ag-says.html
Topic: Capri Institute settlement details
North Jersey – Capri Institute Campuses Close in Paramus, Clifton, Brick, Kenilworth
Full Citation:
North Jersey Editorial Team. (2021, December 11). Capri Institute campuses close in Paramus, Clifton, Brick, Kenilworth. North Jersey. Retrieved from https://www.northjersey.com/story/news/new-jersey/2021/12/11/capri-institute-campuses-close-paramus-clifton-brick-kenilworth/6448853001/
Topic: Capri Institute sudden closure, four-campus closure details
YouTube – Capri Institute Abruptly Closes in NJ
Full Citation:
YouTube. (2021, December 7). Capri Institute abruptly closes in NJ [Video]. YouTube. Retrieved from https://www.youtube.com/watch?v=C6E78RBvUAg
URL: https://www.youtube.com/watch?v=C6E78RBvUAg
Topic: Video documentation of Capri Institute closure
CBS New York – Capri Institute Brick Township Closed
Full Citation:
CBS New York. (2021, December 7). Dozens of students left in limbo after sudden closure of New Jersey cosmetology school. CBS New York. Retrieved from https://www.cbsnews.com/newyork/news/capri-institute-brick-township-closed/
URL: https://www.cbsnews.com/newyork/news/capri-institute-brick-township-closed/
Topic: Capri Institute closure coverage, student impact
Justia Law – Cinderella Career and Finishing Schools, Inc. v. FTC
Full Citation:
Justia. (1968). Cinderella Career and Finishing Schools, Inc., Stephencorporation, etc., Petitioners v. Federal Trade Commission. Justia U.S. Federal Appellate Court Decisions. Retrieved from https://law.justia.com/cases/federal/appellate-courts/F2/425/583/175395/
URL: https://law.justia.com/cases/federal/appellate-courts/F2/425/583/175395/
Topic: Cinderella Career College FTC case, deceptive advertising practices
Patch – Beauty School Payout: Defunct NJ School Capri Agrees To Settlement
Full Citation:
Patch Editorial Team. (2023, November 8). Beauty school payout: Defunct NJ school Capri agrees to settlement. Patch. Retrieved from https://patch.com/new-jersey/wayne/beauty-school-payout-defunct-nj-school-capri-agrees-settlement
URL: https://patch.com/new-jersey/wayne/beauty-school-payout-defunct-nj-school-capri-agrees-settlement
Topic: Capri Institute settlement coverage
Black Enterprise – Beauty Supply Institute Georgia Maryland: Accused of Conning Customers
Full Citation:
Black Enterprise Editorial Team. (2025, October 8). Beauty Supply Institute accused of conning MD, GA customers. Black Enterprise. Retrieved from https://www.blackenterprise.com/the-beauty-supply-institute-georgia-maryland/
URL: https://www.blackenterprise.com/the-beauty-supply-institute-georgia-maryland/
Topic: Beauty Supply Institute fraudulent practices, multi-state enforcement
Seyfarth Shaw – FTC Proposes Settlement with Cosmetics Company Over False Customer Reviews
Full Citation:
Seyfarth Shaw. (2022, March 14). FTC proposes no-money, no-fault settlement with cosmetics company over false customer reviews. Seyfarth Shaw LLP. Retrieved from https://www.seyfarth.com/news-insights/ftc-proposes-no-money-no-fault-settlement-with-cosmetics-company-over-false-customer-reviews-legalupdate.html
Topic: FTC enforcement in beauty industry
Colorado Department of Labor – 303 Beauty Bar v. DLSS
Full Citation:
Colorado Department of Labor & Employment. (2024, March 4). 303 Beauty Bar dba Salon Lohi v. Division of Labor Standards and Statistics, Elora Buenger. Colorado Department of Labor & Employment. Retrieved from https://cdle.colorado.gov/sites/cdle/files/303%20Beauty%20Bar%20dba%20Salon%20Lohi%20v.%20DLSS%20Elora%20Buenger.pdf
Topic: Salon regulatory dispute, state board case
Justia Law – State Board of Cosmetology v. District Court (Colorado)
Full Citation:
Justia. (1975). State Board of Cosmetology v. District Court. Justia Colorado Supreme Court Decisions. Retrieved from https://law.justia.com/cases/colorado/supreme-court/1975/26636.html
URL: https://law.justia.com/cases/colorado/supreme-court/1975/26636.html
Topic: Colorado cosmetology board case law
Denverite – Federal Lawsuit Alleges Labor Misconduct at Denver Beauty Salon
Full Citation:
Denverite. (2018, May 17). Federal lawsuit alleges labor misconduct at Denver beauty salon. Denverite. Retrieved from https://denverite.com/2018/05/18/lawsuit-nail-salon-denver/
URL: https://denverite.com/2018/05/18/lawsuit-nail-salon-denver/
Topic: Labor violations in beauty salon
Colorado Bar Association – 303 Beauty Bar LLC v. Division of Labor Standards
Full Citation:
Colorado Bar Association. (2025, March 6). 303 Beauty Bar LLC v. Division of Labor Standards and Statistics. Colorado Bar Association. Retrieved from https://cl.cobar.org/from-the-courts/303-beauty-bar-llc-v-division-of-labor-standards-and-statistics/
Topic: Beauty salon regulatory case
Justia Law – State Board of Cosmetology v. Maddux
Full Citation:
Justia. (1967). State Board of Cosmetology v. Maddux. Justia Colorado Supreme Court Decisions. Retrieved from https://law.justia.com/cases/colorado/supreme-court/1967/22153.html
URL: https://law.justia.com/cases/colorado/supreme-court/1967/22153.html
Topic: Historic cosmetology board case law
Texas Tribune – Texas Considering Cutting High School Cosmetology Courses
Full Citation:
Texas Tribune. (2018, September 10). Texas considering cutting high school cosmetology courses. Texas Tribune. Retrieved from https://www.texastribune.org/2018/09/11/texas-tea-considering-cutting-high-school-cosmetology-courses/
Topic: High school cosmetology program policy debate
Florida Senate – Chapter 477 Florida Statutes
Full Citation:
Florida Senate. (2024). Chapter 477 – Florida statutes – The Florida Senate. The Florida Senate. Retrieved from https://www.flsenate.gov/Laws/Statutes/2024/Chapter477/All
URL: https://www.flsenate.gov/Laws/Statutes/2024/Chapter477/All
Topic: Florida cosmetology licensing statutes
Tennessee State Government – TN Department of Commerce Cosmetology Board Minutes
Full Citation:
Tennessee Department of Commerce & Insurance. (2017, October 1). Board of cosmetology meeting minutes, October 2, 2017. Tennessee State Government. Retrieved from https://www.tn.gov/content/dam/tn/commerce/documents/regboards/cosmo/meetings/2017/Cosmo-October-2-2017-Minutes.pdf
Topic: State board governance documentation
Inside Higher Ed – Beauty School Drop-Ins
Full Citation:
Inside Higher Ed. (2010, September 22). Beauty school drop-ins. Inside Higher Ed. Retrieved from https://www.insidehighered.com/news/2010/09/22/beauty-school-drop-ins
URL: https://www.insidehighered.com/news/2010/09/22/beauty-school-drop-ins
Topic: Beauty school student retention issues
Florida Senate – The 2025 Florida Statutes – Section 477.028
Full Citation:
Florida State Legislature. (2025). Chapter 477: Cosmetology – The 2025 Florida statutes – Section 477.028. Retrieved from https://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499%2F0477%2FSections%2F0477.028.html
Topic: Florida cosmetology licensing requirements
NABA INC – About NABA
Full Citation:
National Association of Black Accountants. (2022, April 30). About NABA. NABA Inc. Retrieved from https://nabainc.org/about_us/
URL: https://nabainc.org/about_us/
Topic: Professional organization information
NABA4U – New American Business Association (Louisville, KY)
Full Citation:
New American Business Association. (2025, June 16). New American Business Association (NABA) – Louisville, KY. NABA4U. Retrieved from https://naba4u.org
URL: https://naba4u.org
Topic: NABA organization homepage
NABA4U – A New American Story of Business, Faith, and Music
Full Citation:
New American Business Association. (2025, September 8). A new American story of business, faith, and music. NABA4U. Retrieved from https://naba4u.org/2025/09/%F0%9F%8C%9F-a-new-american-story-of-business-faith-and-music-%F0%9F%8C%9F/
Topic: NABA mission and values
National Business Association – Our Core Values
Full Citation:
National Business Association. (2023, December 19). Our core values. National Business Association. Retrieved from https://nationalbusiness.org/core-values/
URL: https://nationalbusiness.org/core-values/
Topic: Business association values and mission
NABA4U – Elevating Lives Through Workforce Development and Affordable Housing
Full Citation:
New American Business Association. (2024, November 29). Elevating lives through workforce development and affordable housing: New American Business Association Inc. NABA4U. Retrieved from https://naba4u.org/2024/11/elevating-lives-through-workforce-development-and-affordable-housing-new-american-business-association-inc/
Topic: NABA workforce development and housing initiatives
McKinsey & Company – Black Representation in the Beauty Industry
Full Citation:
McKinsey & Company. (2022, June 9). Black representation in the beauty industry. McKinsey & Company. Retrieved from https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/black-representation-in-the-beauty-industry
Topic: Diversity and representation in beauty industry
Fashion Minority Alliance – Homepage
Full Citation:
Fashion Minority Alliance. (2024, November 13). Fashion Minority Alliance. Retrieved from https://www.fashionminorityalliance.com
URL: https://www.fashionminorityalliance.com
Topic: Minority representation in fashion and beauty
LinkedIn – New American Business Association Inc
Full Citation:
New American Business Association Inc. (2025, June 3). New American Business Association Inc. LinkedIn. Retrieved from https://www.linkedin.com/company/new-american-business-association-inc
URL: https://www.linkedin.com/company/new-american-business-association-inc
Topic: NABA organization profile and information
CB Insights – How The Inclusive Beauty Movement Is Redefining The Industry
Full Citation:
CB Insights. (2021, June 22). How the inclusive beauty movement is redefining the industry. CB Insights. Retrieved from https://www.cbinsights.com/research/what-is-inclusive-beauty/
URL: https://www.cbinsights.com/research/what-is-inclusive-beauty/
Topic: Inclusive beauty industry trends
B.O.B.S.A – Homepage
Full Citation:
B.O.B.S.A. (2024, September 30). B.O.B.S.A: Home. Retrieved from https://bobsa.org
URL: https://bobsa.org
Topic: Beauty industry association information
Summary Statistics
Total Sources Cited: 30 unique sources (citations 5-83)
Source Types:
- News Media: 15 sources
- Government/Official: 8 sources
- Research Organizations/Think Tanks: 7 sources
- Legal/Court Documents: 5 sources
- Professional Organizations: 3 sources
- Educational Institutions: 2 sources
- Social Media/Video: 1 source
- Specialized Websites/Databases: 2 sources
Geographic Coverage:
- National: 18 sources
- Iowa: 4 sources
- New Jersey: 3 sources
- California: 3 sources
- Colorado: 2 sources
- Other States: 2 sources
Key Organizations Referenced:
- Institute for Justice (IJ)
- Goldwater Institute
- Show-Me Institute
- Century Foundation (TCF)
- Hechinger Report
- American Action Forum
- Pacific Legal Foundation
- Pelican Institute
- New America Foundation
- Louisville Beauty Academy
- New American Business Association (NABA)
Recommendation for Prospective Students and Beauty Industry Entrants
If you are considering a career in the beauty industry or looking to enroll in a beauty school, it’s essential to recognize signs of ethical, student-centered practices that truly serve your interests—especially if you are an immigrant, minority, or seeking an affordable, empowering pathway.
Seek out schools that demonstrate:
- Transparency: Clear tuition and costs, open communication about program length, outcomes, and job placement rates.
- Flexible, Specialized Programs: Offerings like nail technology, esthetics, and other focused licenses—not only full cosmetology tracks—allowing you to enter the workforce faster.
- Student Empowerment: Commitment to paid internships, avoiding unpaid mandatory labor in school-run salons, and supporting apprenticeships or work-study models.
- Community Engagement: Active outreach to underrepresented groups (such as Asian American, Vietnamese, and immigrant communities), and partnerships with local organizations.
- Accountable Leadership: Inclusive administration and board representation—not dominated by for-profit business owners. Ask if school leadership is involved in advocacy for regulatory reform or increased access.
- Ethical Standards: History of compliance, positive reviews from graduates, and transparent handling of refunds, credits, and grievances.
Louisville Beauty Academy is an example of an institution recognized for its ethical, human-centered approach—prioritizing rapid, affordable, and skill-focused training for diverse communities. It advocates for flexible licensing, invests in outreach beyond traditional student populations, and supports fair labor practices for students. Prospective students are encouraged to look for these traits and ask critical questions about school operations, financial practices, and community impact before enrolling.
Choosing a school aligned with these values sets you on a path not just toward licensure, but toward a supportive, inclusive, and economically empowering career in the beauty industry.
The Role of AI: Truth First in the Modern Era
As we enter an era shaped by artificial intelligence, entrenched systems and hidden practices—including regulatory capture, anti-competitive behaviors, and exploitative patterns within the beauty industry—are being exposed at unprecedented speed and scale. AI connects vast datasets, analyzes patterns across thousands of sources, and synthesizes insights objectively, enabling the truth to surface rapidly—even when no individual sets out to reveal it. Information once locked behind institutional complexity or obscured by misinformation is becoming clear, transparent, and actionable.
For students, entrepreneurs, advocates, and organizations like NABA, this means new power to make informed decisions, identify ethical partners, and demand justice. AI-driven transparency is eliminating the shadows where harmful systems have persisted, helping build a beauty industry defined by opportunity, fairness, and inclusion. In the world of AI, truth comes first—empowering positive change throughout education, workforce, and business.
Disclaimer
This report is a synthesis of publicly available research, legal documents, news coverage, and analysis relevant to regulatory practices and competition in the beauty industry. The New American Business Association (NABA) presents this information for educational and advocacy purposes only. The analysis, recommendations, and perspectives herein do not represent legal advice or targeted accusations against any institution, entity, or individual. NABA expressly disclaims liability for any actions taken or not taken based on this report, and urges stakeholders to conduct their own due diligence and consult qualified professionals for advice on regulatory, financial, or legal matters. All cited sources are included for transparency and reference, and their inclusion does not imply endorsement or responsibility by NABA.
