'Selling false hope': How mums are lured into a shampoo business

The allure of financial freedom and flexible family life draws many women into multi-level marketing schemes like MONAT, a global hair and skin care company. Sellers' social media feeds often depict a life of luxury, featuring high-end cars and exotic travel destinations, presented as attainable through their "little shampoo business."

These pitches emphasize ditching the 9-to-5 grind, building a business in spare moments, and creating the desired family life. The narrative often centers on "mothers helping mothers," a powerful draw for many.

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These women were fawning over them, like they were movie stars.

However, beneath this glossy exterior lie legal battles and disgruntled sellers. Three former Australian insiders allege that top earners manipulate the system to maintain lucrative ranks, while the majority of sellers earn minimal income. They claim the vision of financial independence is largely dependent on recruiting ever-expanding teams.

As MONAT faces scrutiny over earnings claims in the US and lawsuits from former distributors, questions arise about whether its sales practices breach Australian law and if its multi-level marketing model constitutes an illegal pyramid scheme. One former top earner, Sarah, described a turning point at a luxury incentive trip where she witnessed women fawning over top earners like "movie stars," sparking her disillusionment.

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It was very much 'retire your husband', 'this is your business'. It was mothers helping mothers, which was a big thing for me.