Kylie Jenner at the 2020 Vanity Fair Oscar Party. Photo: Toni Anne Barson/WireImage via Getty Images

Forbes Magazine revoked its declaration that Kylie Jenner is a billionaire on Friday, accusing the social media influencer of inflating her income from her cosmetics company, Kylie Cosmetics, as part of a "web of lies."

Why it matters: The accusations undermine the integrity of the entire Kardashian-Jenner business empire, while calling into question the real value of a brand versus its perceived value on social media. They also highlight the murkiness of the heavily under-regulated influencer economy.

  • The FTC has begun to call out influencers for false commercialization. But former FTC officials have conceded to Axios that the agency is widely under-resourced when regulating these matters — and has heavily relied on social media platforms to regulate the influencer economy.

By the numbers: Jenner sold 51% of her brand to beauty company Coty in a deal that valued Jenner's company at $1.2 billion in January. But after looking at Coty's public filings over the past six months, Forbes concluded the company is smaller than the family had led media outlets to think.

  • Forbes says Coty's filings indicated Jenner's business only generated about $125 million in 2018, far lower than the $360 million it had led Forbes to believe.
  • Jenner's representatives told Forbes the media personality's skincare line had $100 million in revenue in its first month and a half in 2019, but filings showed it was on track for $25 million in sales from its launch in May through the end of last year.

What they're saying: "The business was never that big to begin with, and the Jenners have lied about it every year since 2016 — including having their accountant draft tax returns with false numbers — to help juice Forbes’ estimates of Kylie’s earnings and net worth," Forbes' Chase Peterson-Withorn and Madeline Berg wrote.

  • "While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying."

What she's saying: Jenner denied Forbes' allegations in tweets Friday, in which she described the Forbes article have "a number of inaccurate statements and unproven assumptions."

The bottom line: Forbes says that a more realistic assessment of her net worth puts it "just under $900 million" — still a huge number despite the exaggerations about her company's size and the resultant effects of the coronavirus pandemic on its business.

Go deeper

Competitors ready to pounce on TikTok bans

Illustration: Aïda Amer/Axios

Growing security and privacy concerns over Chinese-owned short-video app TikTok have given a lift to alternatives like Byte and Dubsmash, which have seen spikes in downloads from smartphone users recently, according to data from SensorTower.

Why it matters: If TikTok's meteoric rise in popularity among U.S. youth gets slowed by rising tensions with China, or ended by a threatened ban by the Trump administration, American teens will still have to get their hits of meme-laden video somewhere.

28 mins ago - Technology

U.S. pushes homegrown drone industry amid China battle

Illustration: Sarah Grillo/Axios

Alarmed at the prospect of relying on Chinese-made drones for public safety and monitoring critical industries, U.S. investors and the federal government are newly backing a domestic drone industry of hardware and software companies.

The big picture: The moves come as the industry continues to be led by DJI, a Chinese hardware maker — and as concerns grow both in China and the U.S. about reliance on the other country's technology.

Exclusive: The N.Y. Times doubles down on TV and film ambitions

Illustration: Aïda Amer/Axios

One of the country's oldest and most established media companies is starting to look more like a Hollywood studio than a traditional newspaper.

Driving the news: The New York Times has 10 scripted TV show projects in development, as well as 3 feature documentaries coming out this year and several other documentary projects in development and production, executives tell Axios.