TIP: Click on subject to list as thread! ANSI
echo: askacop
to: ALL
from: RON TAYLOR
date: 1998-02-02 10:57:00
subject: Fraudelent Business

Does anyone here know what laws are enacted making it illegal to
misrepresent the gold content in jewelry?
It is my understanding that to sell a product as "14 karat gold", the
piece must assay at 14/24ths pure gold.... as a matter of law.
My question is, what law?  Is this a federal statute or is it locally
enacted.  How would someone proceed in having a merchant that violates
this law criminally prosecuted?
I am a hobby jeweler and have completed several courses in fine
metallurgy and jewelry making but have never gotten into the legalities
of dealing in precious metals.  I never felt compelled to as long as I
am honest and forthright with my customers.
The question arises from a merchant that is selling "14 karat gold
filled" as "14 karat gold".  While the product _contains_ 14k gold,
it is not _entirely_ 14k gold... just the outer shell.  By definition
they are two very different things!  An unwary customer would never know
the difference because 14kgf looks and wears just like 14k.... its just
20 times cheaper!
This vendor will explain the difference if pressed, but when
someone doesn't ask, he will allow them to think they have bought 14k
gold.  Actually, he will tell them it is 14 karat gold, and will only
differentiate if asked is it _solid_ 14k. Even then he will be extremely
evasive in giving forthright answers.
He doesn't sell his stuff at 14k prices, just allows his customers to
believe that they have purchased 14k at extremely low prices.  Since he
and I are often in direct competition, his actions have a direct bearing
on my success.
He knows that I know he is doing this and maintains that he is doing
nothing illegal and that his ethics are between him and his
customers...none of my business.  He says that the law says, "Let the
buyer beware".
I know he is dealing unethically, and would be liable for civil
action.... what I want to know is if he is violating criminal statutes.
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