Blue Hippo

Anything cuter than a Blue Hippo that scams naive poor people? FTC: BlueHippo pocketed $15 million, only shipped one PC.

How sleazy could any company be with an adorable blue hippo for a mascot? Baltimore-based BlueHippo provides the answer: really, really sleazy.

The Federal Trade Commission (FTC) has had it with the company, which offers computers on layaway to those too poor to buy one outright. Buyers put up $99 to $124 in down payments, then make regular payments of $36 to $88. After 13 of these payments, the company says it will send out a computer, while the payments continue until the balance is paid off.

Unfortunately for the friendly folks at BlueHippo, the FTC smelled a scam. People were simply not getting machines, and BlueHippo's "cancelation policy" required people to send in prepaid money orders first even if their account had enough money to cover the necessary fees--not allowed under FTC consumer protection rules. In 2008, BlueHippo settled with the agency. Under the terms of the deal, BlueHippo would pay up to $5 million into a "consumer restitution pool" to reimburse those who had been burned.

They're still in business, and now they've expanded into flat screen TVs. Naive poor people probably like those better than computers.

"You deserve the true home theater experience."