Launched in early 2000 by brothers Mark and Harry Tahiliani, the Arizona-based company collapsed just a year later following an aggressive federal crackdown. Members paid a $10 application fee and a $99.95 monthly hosting fee to get their own personalized Bigsmart "welcome page". This page acted as an e-commerce hub, featuring links to major third-party retail sites like MarthaStewart.com and Bigsmart’s own product "Superstore". In March 2001, the FTC filed a formal complaint charging Bigsmart with running an illegal pyramid scheme and promoting false income claims. Rather than fighting a lengthy legal battle, the company and its owners agreed to a massive settlement: $5 Million Consumer Redress: Bigsmart was ordered to pay $5 million back to defrauded customers, Strict Performance Bonds: The Tahiliani brothers were barred from participating in any future Multi-Level Marketing (MLM) programs unless they first posted a $500,000 performance bond to protect future consumers, andatory Compliance Monitoring: The company was stripped of its autonomy, forced to aggressively police its distributor force, and mandated to turn over its customer data directly to federal investigators.Following the settlement, Bigsmart tried to temporarily modify its pricing and language to state that it was a legitimate MLM. However, crippled by the $5 million fine, stricter rules, and a destroyed reputation, the business quickly collapsed entirely and dissolved.
