FOR IMMEDIATE RELEASE:  February 20, 1990


              FTC ADMINISTRATIVE COMPLAINT CHARGES 
              WAYNE PHILLIPS MADE FALSE ADVERTISING
                CLAIMS FOR GOVERNMENT GRANTS BOOK


     The Federal Trade Commission charged that Wayne Phillips has
made false claims in advertising government grants to consumers to
start small businesses.  In an administrative complaint issued
today, the FTC charged that Phillips made the false and mislead-
ing claims through a 30 minute commercial, which is one of a series
called "Money Money Money."  

     According to the FTC's complaint, "Money Money Money" is a 30
minute commercial in the form of a talk show.  In one of the com-
mercials, the "hosts" interview Wayne Phillips, who poses as a
guest and is referred to as "America's foremost expert on low
interest government loans and government grants."  Phillips writes
and sells various materials telling consumers how to get these
loans and grants, including a book titled, "How to Start Your Own
Business By Doing Business With The Government."

     The complaint charges that Phillips and the "Government
Grants" commercial make the following false and misleading claims:

     --   There are $33 billion in grants available from federal,
          state, and local governments to start small businesses.

     --   Federal, state, and local governments provide grants to
          consumers to start small businesses without regard to
          the applicant's financial history or resources.

     --   It is easy for the average consumer to obtain a govern-
          ment grant to start virtually any type of small busi-
          ness.

     --   The Government Grants book consists primarily of infor-
          mation on how average consumers can easily obtain grants
          from federal, state, and local governments to start
          virtually any kind of small business.

     --   The Small Business Innovation Research program provides
          grants to consumers to start virtually any kind of small
          business, and average consumers can obtain a $25,000
          grant from that program to start a small business quickly
          and easily.

     --   Certain claimed success stories are true and substan-
          tiate that the information provided in the Government
          Grants book has been used successfully by average con-
          sumers to start small businesses.

     In addition, the complaint charges that Phillips claimed that
consumers who bought the book would also receive, in a timely
manner and at no additional charge, a Grant Alert Service, which
would provide consumers information about government grants avail-
able in their geographic area.  This claim was false and mislead-
ing, the Commission charges, because many consumers did not receive
the Service.

     The administrative complaint names Wayne Phillips, of Scotts-
dale, Ariz., and two companies of which he is an officer:  Accel-
erated Systems Inc., of Salt Lake City, and United States Educa-
tional Systems Inc., of Reno, Nev.

     The Commission issues a complaint when it has "reason to be-
lieve" that the law has been or is being violated, and it appears
to the Commission that a proceeding is in the public interest. 
The issuance of a complaint is not a finding or ruling that the
respondent has actually violated the law.  Such action marks the
beginning of a proceeding in which the allegations will be ruled
upon after a formal hearing.

     Copies of the administrative complaint are available from the
FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania
Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502.

                             # # # 

MEDIA CONTACT:      Susan Ticknor, Office of Public Affairs, 
                    202-326-2181

STAFF CONTACT:      Jeffrey Klurfeld, San Francisco Regional
                    Office, 415-744-7920

(Money)

(Docket No. 9237)