Question:  What’s the difference between $600,000 and $14 million in a contempt action?  Answer:  Presumption of consumer reliance, according to the Second Circuit Court of Appeals in Federal Trade Commission v. BlueHippo Funding, LLC.

The case began in 2003, when BlueHippo first began marketing computers and electronic products to consumers regardless of their credit history.  BlueHippo offered the following deal to consumers: if a consumer made 13 consecutive installment payments and signed an installment contract, BlueHippo would ship the computer and permit the consumer to finance the remaining balance.  If the consumer missed a payment, the consumer would not … Continue Reading