February 18, 2011
The Office of Fair Trading has issued warnings to a number of gold buying businesses whom it believes are not treating customers fairly and in accordance with Consumer Protection Regulations. The Office is concerned that such businesses lock people in to accepting offers for their gold by giving them only a limited period of time within which to reject an offer, at the end of which their gold would be melted down without warning. Many such companies buy and pay for gold and jewellery by post so it is imperative that they are clear as to how offers and quotations can be accepted or rejected. The businesses are also being required to be clearer and more open about how they operate and the price they will pay for gold and jewellery in accordance with its weight and carat. Claims to pay a ‘top price’ must be explained clearly as relating to the value of the items as scrap and not as re-saleable jewellery. The requirements laid down by the Office of Fair Trading show how important is it for businesses to have clearly and adequately drafted terms and conditions of business. For businesses dealing with the public, these must be fair and set out in a way that the public can easily understand. Businesses can obtain advice and assistance in relation to their terms and conditions and businesses practices from a solicitor.