Gold buyers face OFT probe
The Office of Fair Trading (OFT) is to investigate several companies that offer consumers cash for their unwanted gold items after complaints about their business practices.
Firms such as PostGoldForCash, CashmyGold and Cash4Gold use celebrities such as Dale Winton and Goldie in direct response television campaigns urging viewers to send in their unwanted jewelry in exchange for cash.
The OFT has asked for information about claims made in TV and digital ads by “a number of companies” after receiving several complaints.
Juliet Young, a director at the OFT, says it wants to check that businesses buying gold using the postal service are “developing in a way that treats customers fairly”.
The OFT’s concerns include whether a consumers’ right to reject an offer for gold and receive it back is being honoured. It will also be reviewing the fairness of the companies’ terms and conditions.
The move follows a report by Which? Money that accused gold buyers of offering “shockingly bad value”.
The OFT says it will decide what further action, if any, is appropriate once it has received the requested information, adding “no assumption should be made that any companies involved in gold buying have broken the law”.
