Israeli-Linked Cosmetics Distributors Accused of Predatory Sales Tactics

An extensive investigation by NPR has uncovered hundreds of complaints against U.S. cosmetics stores, some of which distribute products from a company owned by an Israeli-origin family. The probe revealed instances of customers being charged tens of thousands of dollars for products, with allegations of aggressive sales tactics, particularly targeting the elderly and disabled. One case involved Victor Chisholm, a 30-year-old man with a developmental disability, who allegedly paid $41,747 to B&Q Cosmetics at Westfield Topanga mall in California, plus an additional $10,120 transferred directly to store employees via payment apps. His attorney stated the funds came from a car accident settlement, and Chisholm claimed salespeople pressured him into buying unwanted items, with his requests for refunds being denied. The store was subsequently closed in September, though representatives denied the accusations, suggesting Chisholm also made large purchases elsewhere and that one employee involved in the direct transfers acted without company authorization.

Another complaint filed in Michigan detailed a father with dementia being charged $42,000 for cosmetics and skincare devices, with the family discovering the charges after his credit rating was impacted. In Hawaii, a woman with a disability alleged a salesperson took her walker and prevented her from leaving a spa for hours until she paid $2,600. Beyond sales practices, the investigation examined product pricing, with order documents showing a face mask sold to stores for $23 but with a recommended retail price of $3,000. A separate Oprah brand product, recommended at $1,300, was found in lab tests to lack detectable levels of vitamins A and E, despite being listed as ingredients, raising suspicions from the chemist who performed the analysis.

Mazal Group, a California-based distributor founded in 2015 and owned by the Weingarten and Oded family of Israeli origin, distributes numerous cosmetic brands but states it does not operate the stores themselves. However, documents from a class-action lawsuit in Hawaii indicated connections between Mazal Group and the stores, including guidance on sales, branding, and refunds. This lawsuit concluded in June 2026 with a $950,000 settlement, to which Mazal Group and family members committed $650,000, while denying all allegations. The investigation also touched upon the employment of young Israelis in cosmetics stores, with evidence suggesting some worked without proper permits. In a separate federal case, Omer Gur was convicted of visa fraud and money laundering for employing over 140 undocumented workers and generating more than $14 million in revenue. In New Mexico, Israeli cosmetics store owner Sahar Khoury reached a settlement in 2025 agreeing to pay $350,000 in customer restitution, with his lawyers stating he acknowledged customer dissatisfaction but denied intentional fraud. Mazal Group responded to the investigation by reiterating that it is a distributor only, does not own or operate retail stores, and does not manufacture products. The company rejected attempts to attribute responsibility for the alleged actions of independent stores that purchase its merchandise.