UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF FLORIDA
Northern Division
FEDERAL TRADE COMMISSION,
Plaintiff,
v. Civ.
MAJORS MEDICAL SUPPLY, INC., Case No.
a Florida Corporation,
Magistrate
STUART PHILLIPS,
individually and as an officer and COMPLAINT FOR
principal of Majors Medical Supply, PERMANENT
Inc. CONSUMER REDRESS,
RESCISSION OF
and CONTRACTS, AND
EQUITABLE RELIEF.
JOANNE PHILLIPS,
individually and as an officer and
principal of Majors Medical Supply,
Inc.,
Defendants.
Plaintiff, the Federal Trade Commission, ("FTC" or "the Commission"), for its complaint,
alleges:
1. The Commission brings this action under Sections 13(b) and 19 of the Federal Trade
Commission Act ("FTC Act), 15 U.S.C. 53(b) and 57b, to secure a permanent injunction,
preliminary injunctive relief, rescission or reformation of contracts, disgorgement, appointment of
a receiver, and other equitable relief for defendants' deceptive acts or practices in violation of
Section 5(a) of the FTC Act, 15 U.S.C. 45(a), and the FTC's Trade Regulation Rule entitled
SNIPPETS:
Plaintiff, the Federal Trade Commission,, for its complaint,
Commission Act, 15 U.S.C. 53and 57b, to secure a permanent injunction,
preliminary injunctive relief, rescission or reformation of contracts, disgorgement,
Section 5of the FTC Act, 15 U.S.C. 45, and the FTC's Trade Regulation Rule entitled
"Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity
Ventures (the "Franchise Rule" or "the Rule"),
Venue in the Southern District of Florida is proper under 28 U.S.C. 1391
Plaintiff, the Federal Trade Commission, is an independent agency of the United States
deceptive acts or practices in or affecting commerce, as well as enforcement of the Franchise
The Commission is authorized to initiate federal district court
N. Military Trail, Suite 390, Boca Raton, Florida 33431.
Defendant Joanne Phillips, who is married to Stuart Phillips, is the co-founder of MMS.
and sells home medical equipment franchises.
At all times relevant to this complaint, the defendants have maintained a substantial course
of trade or business in the offering for sale and sale of home medical equipment franchises,
affecting commerce, as "commerce" is defined in Section 4 of the FTC Act, 15 U.S.C. 44.
consumers and are reimbursed by Medicare, Medicaid, or other insurance carriers.
representations about the cost of opening a franchise and the earnings potential of its
VIOLATIONS OF SECTION 5 OF THE FTC ACT
Paragraphs 1 through 10 are incorporated herein by reference.
In numerous instances, in the course of promoting, offering for sale and selling home
In truth and fact, in numerous instances, the amounts stated by defendants have not been
The Franchise Rule also requires that the franchisor provide prospective franchisees with a
Consumers in many areas of the United States have suffered and continue to suffer
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