Citing Consumerist’s investigation of Cash4Gold, Congressman Anthony Weiner (D-NY) has demanded that the Federal Trade Commission investigate Cash4Gold and its competitors.
Weiner is also proposing legislation, the Guarantee of a Legitimate Deal (GOLD) Act, which would regulate the mail-order gold-buying industry. “Cash4Gold is using these tough times as a golden opportunity to fleece customers,” Weiner said. “These deceptive practices must end.”
In his letter to FTC Commissioner Jon Leibowitz, Weiner stated, “It’s time for the government to take a stand against predatory companies like Cash4Gold.”
The GOLD Act would issue fines to companies that melt down a consumer’s gold without their permission before the return policy has ended, require companies to give consumers ample time to request a refund, and mandate that companies ensure returned jewelry is insured with the post office at the same monetary value as the consumer originally insured it.
Chuck Bell, Programs Director for Consumers Union (the parent company of Consumerist and Consumer Reports), said: “Consumers responding to such offers absolutely need to have a fair chance to negotiate a better offer, or to promptly obtain the safe return of their gold or precious metal, with appropriate insurance.”
The Charge: Not So Much Cash 4 That Gold [NYT City Room]
Previously: The Article Cash4Gold Doesn’t Want You To Read