TV jewellery-buying companies to give answers to OFT

First published: 26-01-2010

The Office of Fair Trading (OFT) has demanded that several companies which offer consumers cash for gold jewellery give answers to prove they are not breaking the law.

According to the market watchdog, five companies need to explain claims they have made in their advertising and on websites while also giving details of their business practices to make sure they are complying with consumer protection rulings.

Complaints from consumers and a recent Which? Money survey has underlined that gold-buying companies offer awful value for money, urging people to avoid them at all costs.

Peter Vicary-Smith, chief executive of Which?, said: "The poor value for money that these TV gold buyers are providing is simply shocking.

"The cash for gold market is unregulated, and this investigation has raised some serious concerns about the fair treatment of consumers."

Gold prices have soared in recent months, as the commodity has become a bankable investment across the world and pushing the price above $1,000 (£620) per ounce for the first time ever.

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