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CONSUMER NEWS SAN DIEGO CITY ATTORNEY’S OFFICE

Jewelry Sales & Precious Metals

June 2011

As and prices hit Gold and silver jewelry is rated Examples of false representations record highs, some consumers according to the content of the that may be made about gold or want to purchase jewelry for in the piece. There silver are: investment purposes and there is are clear standards in the industry  Representing that a gold a proliferation of companies that that are used to determine whether plated item is “gold”. an item is 14K gold or 28K gold.  Representing that silver is offer to buy your gold and silver There are markings that are if it does not scrap jewelry. This newsletter stamped into gold that indicate its meet the definition above. offers some guidance for both carat content. Gold jewelry that is  Representing an item has a buyers and sellers of jewelry. 18K gold is stamped either “18k” specific carat content if or “750” because it is 750 parts per the entire item does not The Federal Trade Commission thousand gold. meet that specification. has issued guides for the jewelry advertisements that define the The phrases “solid gold” and “fine GEMS: terms used in the industry and gold” mean that the item is carated establish how jewelers advertise gold. It is not gold plated. Gold Often, jewelry also contains a gem involves applying gold over or gems. It is more difficult to their products. The San Diego another metal. Gold plating may evaluate advertising claims made City Attorney’s Office can wear off over time. about gems because they are investigate and prosecute classified according to standards jewelers who advertise in Silver is also an metal. that are somewhat subjective. violation of these guides and “Sterling silver” is 92.5% silver California’s False Advertising and 7.5% . Silver items are are defined as “pure Law. also stamped with their purity. A carbon crystallized in the isometric sterling silver piece would have a system” with specified qualities. REPRESENTATIONS ABOUT stamp that reads “925.” “Coin They are classified by carat weight, GOLD AND SILVER JEWELRY: silver” is 900/1000ths part silver. color, clarity and cut. Although there are definite standards for the Those who sell jewelry are bound “Vermeil” is sterling silver that is carat weight and cut, the evaluation by the same advertising laws as any coated or plated in gold that is 10K of a ’s color and clarity other retailers. They are prohibited or higher in a thickness of 2.5 may differ based upon the from making untrue or misleading microns. appraiser. These evaluations statements about their products. should not vary greatly, but the subjectivity of this process makes it

SERVING CONSUMERS AND PROTECTING COMMERCE more difficult to evaluate As with purchasing jewelry, it is advertising claims. Certainly, important that anyone who is exaggerated claims about the Jewelers and others are printing selling jewelry to a business check quality of a diamond would be false full-page ads and advertising on out the business using the tips set advertising. television that they are offering to forth above. pay “top dollar” for your scrap gold Diamonds and other and silver. may be treated to enhance their San Diego color. When a jeweler advertises a Anyone who is purchasing gold or City Attorney’s Office treated , he/she must silver by weight using his/her own Consumer and Environmental disclose it has been treated if the scale must accurately determine the Protection Unit treatment: is not permanent; weight of the item. (619) 533-5600 requires that the gem be treated in a special way; or reduces the value of The scale that is used for weighing the gem. the items has to be appropriate for Newsletter written by Assistant the items weighed. Since gold and City Attorney Tricia Pummill Gems can also be created in silver are purchased by the , laboratories. It is unlawful to the purchaser must use a scale that Sources: FTC Guides for the advertise that a gem is a weighs and tenths of Jewelry, Precious Metals and “,” “,” “,” ounces. A purchaser using a scale Industries, “,” “gemstone,” or other that is not sufficiently sensitive http://www.ftc.gov/bcp/guides/jewe precious or semi-precious stone if it would pay for less than the true l-gd.shtm & Business & has been created in a laboratory. weight of the metals. Professions Code section 12512. The advertiser must disclose that the gem is not a natural stone. The seller of the jewelry should The information provided in this also determine the carat value of newsletter is intended to convey the gold or silver before offering it general information and is not for sale. A purchaser who intended to be relied upon as legal It is important to buy jewelry only misrepresents the carat value of the advice. from a retailer you trust. To metal he/she is purchasing in order determine whether a jeweler is to pay less than it is worth would To report violations of consumer trustworthy: be in violation of the law. protection laws, call the City  Check the Better Business Attorney’s Hotline at (619) 533- Bureau website at It is important also to note how the 5600. www.sandiego.bbb.org to purchaser is advertising his/her determine whether the desire to purchase the jewelry. BBB has received complaints about him/her. Is the purchaser a jeweler who is  Ask for references from offering to pay for the value of the people you trust. piece as an item of jewelry? If so,  Ask the jeweler whether the purchaser can offer to pay he/she has a gemologist or whatever that item is worth to on staff and, if him/her. If the purchaser so, what their credentials misrepresents the quality of item in are. order to get a lower price, this may  Run a general inquiry on constitute false advertising. the internet to see if there are any posts about the If the purchaser is offering to pay a business. set amount per ounce of gold or  Find out how long the silver, then the purchaser is jeweler has been in prohibited from misrepresenting business and the the weight of the product or its experience of the staff. carat weight in order to pay less than advertised.

SERVING CONSUMERS AND PROTECTING COMMERCE