The company was cited by the United States House of Representatives in a 1975 hearing as an example of consumer fraud, again in 1977, and in 1991, in a hearing by the House Committee on Small Business. Katz's "Everybody's Business: An Almanac" also referred to Holiday Magic as a "pyramid sales organization". Turner described it as one of the first "pyramid marketing" companies in America. Clarke referred to the company as an "illegitimate" business. Tobias poked fun at the pyramid nature of the organization, in his book "The Only Investment Guide You'll Ever Need", telling readers to be wary of "..Holiday Magic - where the big money to be made was not in selling cosmetics, but in selling franchises to sell franchises (to sell franchises).." Howe wrote in the "San Francisco Chronicle" that Holiday Magic was "..one of the largest of all pyramid schemes.."