Earlier this week, Jeweller reported that the Jewellers Association of Australia (JAA) was considering taking action against one of its members, an Australian diamond company, after a spike in consumer complaints about the business.
It has now emerged that the company in question is online diamond retailer Diamond Exchange (diamondexchange.com.au). A notification of application to wind up the company was filed on Wednesday with corporate watchdog the Australian Securities & Investments Commission.
At the time of publication it is unclear who filed the application to put Diamond Exchange into administration, but sources say it is a creditor. The recent spate of complaints included a formal complaint by a trade member of the JAA about Diamond Exchange.
On Tuesday, JAA chief executive Ian Hadassin said he was working with the company to alleviate any consumer or trade concerns. Jeweller understands that Hadassin met with a company representative on September 1 and was provided with a number of undertakings to rectify some of the claims.
Diamond Exchange is a public company and yet, as of yesterday, there is no mention of the application for administration under the
Company Announcements section of its website.
As at 4pm, Friday September 17, and even though the application was made on Wednesday, there was no indication to consumers that there was an application to wind up the company.
Interestingly, the About Us page states: “Our International list of affiliations ensures that we are ethically bound to deliver a high quality of service. Our reputation within the industry dates back several generations, which allows us to offer distinct marketing advantages associated with an international diamond infrastructure.”
The website promotes the qualifications and expertise of its directors and shareholders, providing extensive professional information about them, but no director is named or listed on the site.
Hadassin said that the consumer complaints about the company concerned two things; the late delivery of product and a lack of refund or the length of time taken to refund money for items that had been returned.
“It seemed to be out of proportion with the usual number of complaints we receive about any particular company. We received six to eight about this business in a four-week period. That’s a lot,” he explained.
On Diamond Exchange’s website, it states: “We offer a 14-day money-back guarantee if you are not entirely satisfied with your diamond purchase.”
Hadassin was adamant on Tuesday that if the company did not resolve the important issues, and deliver on its own undertakings, the matter would be referred to the consumer watchdog – the Australian Competition and Consumer Commission.
Under the FAQ page on the site, the following Q&A is listed: “Is it safe to buy diamonds online? Absolutely, yes. 'The Diamond Exchange' (a public company) is one of Australia's most respected diamond traders. All the processes involved in internet purchasing have been carefully streamlined to ensure the safety of the buyer. Stringent procedures have been put into place to ensure that the prospective client feels safe to make the purchase. Your financial interests are 100% secure. Our 14-day money-back guarantee attests to our confidence in our product and procedures.”
Diamond Exchange is an unlisted public company which is a company that has issued shares to the public but has elected not to have those shares listed on a stock exchange.
As further events unfold,
Jeweller will keep readers updated online.
*** UPDATE - TUESDAY 28 SEPTEMBER, 3.15PM ***
Jeweller has been informed by the Jewellers Association of Australia (JAA) that:
1. The JAA has published a message on its website (jaa.com.au) about Diamond Exchange Ltd.
2. The JAA has advised those consumers who are still owed money to contact the lawyers representing the petitioning company seeking to wind up Diamond Exchange Ltd.
3. The JAA has advised Diamond Exchange that the JAA Board will vote at the Board meeting on 1 November 2010 to cancel its JAA membership unless Diamond Exchange can show cause why it should remain a member.
4. The JAA has advised Diamond Exchange Ltd that a formal complaint has been lodged with ASIC.
The Jewellers Association of Australia can be contacted on 02 9262 2862 or info@jaa.com.au.
Australian Securities & Investments Commission