Gold jewellery wholesalers Allure Gold has promised to rectify its instances of misconduct
Jewellery supplier caught out for illegal activities
4.2 k views | Posted January 25, 2011 |
Australian supplier Global Enterprises, which trades as Allure Gold, has been taken to task by the Australian Competition and Consumer Commission (ACCC) for engaging in resale price maintenance, as well as misrepresenting consumer warranty rights and the composition of certain jewellery pieces.
Allure Gold will now be forced to offer a refund to customers who feel its product was misrepresented and also to rectify any misrepresentations over price and warranties with retailers.
In May 2010, Allure Gold engaged in resale price maintenance when it sent an email to its retailers directing them not to sell Allure Gold products for less than 18 per cent off the recommended retail price.
ACCC chairman Graeme Samuel said, “Requiring independent resellers not to discount a product below a certain price is illegal.”
He added, “Businesses must allow independent distributors of their products the freedom to determine the prices at which they sell. Ultimately, it is the consumer who benefits from such freedom in the market.”
Allure Gold subsequently made a number of representations regarding the thickness of gold in some of its products, its offer of an unconditional lifetime guarantee and the manufacturer of Allure Gold products.
Visitors to the company’s website are presented with a pop-up window acknowledging that Allure Gold had breached sections 52 and 53(a) of the Trade Practices Act 1974 in the promotion of some of its products.
According to the notice, the company’s US manufacturer made a change in the thickness of gold in a number of Allure Gold products without Allure Gold’s knowledge.
In an ironic twist, a full-page advertisement placed by Allure Gold in Jewellers Trade magazine last December provided the following customer testimonials;
* “I honestly thought Allure Gold was too good to be true. I kept waiting for the catch. There wasn’t one.” – Jody Day.
* “Now everyone can afford to look like a MILLION DOLLARS at a fraction of the cost.” – Monique Newton.
The advertisement’s fine print noted, “The testimonials presented in this advertisement apply to the individuals depicted and may not be representative of the experience of others.”
In response to the raised issues, Allure Gold has provided a court enforceable undertaking to the ACCC and has promised to:
• Send a letter to all retailers notifying them of the undertaking provided to the ACCC and informing them that they are able to set whatever minimum price they each choose at which they advertise, sell, display or offer goods for sale.
• Place a corrective notice on their website and ask retailers to place a corrective notice in-store.
• Provide a full refund to any consumers or retailers that feel they have been misled as to composition.
• Establish and implement a trade practices law compliance programme.
Retailers and consumers who wish to obtain a refund should contact Allure Gold on 1300 539 355.