FTC v. BlueHippo Funding, LLC, No. 1:08-cv-01819 (S.D.N.Y. Nov. 6, 2015) BlueHippo stipulated to a final judgment and permanent injunction against certain sales practices. The FTC moved for a contempt finding based on the practices described below, which was granted in part and denied in part; the Second Circuit vacated the damages portion of the order (the denial) and remanded for consideration of whether a presumption of consumer reliance applied to the facts of the case. The court here held that it did. The facts: BlueHippo was an installment credit company that marketed computers and other electronic products to “credit-challenged” consumers who’d make an initial down payment followed by thirteen additional payments. Consumers who successfully made that series of payments would get a computer and would be enrolled in BlueHippo’s financing plan to pay the remaining balance. BlueHippo’s challenged store credit and…
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