Following concerns raised by the ACCC, Global Enterprises (Qld), trading as Allure Gold, has agreed to offer refunds to consumers and retailers who it may have misled with its “online respresentations”.
The wholesaler of gold jewellery, which distributes Allure Gold products to around 1100 Australian retailers, has also agreed to inform retailers that they are free to discount and sell products at any price they choose.
The ACCC accepted Global Enterprises’ undertaking after becoming aware that “Allure Gold had engaged in resale price maintenance and misrepresented consumer warranty rights as well as the composition of certain jewellery items”.
According to the ACCC, the company engaged in resale price maintenance by sending an email to its retailers in May last year directing them not to sell Allure Gold products for less than 18 per cent off the recommended retail price.
In addition the company “made a number of misrepresentations regarding the thickness of gold on some of its products” as its website stated that the thickness of gold on its rose gold range was approximately “75mil” when it was actually “40-55 mil”, and that the thickness of gold on its white gold range was “75 mil” when it was actually “10-14 mil”.
The company also misrepresented consumer warranty rights by stating on its website that it offered an “unconditional lifetime guarantee” on its products and then sending a letter telling retailers that selling Allure Gold products for less than 18 percent off the recommended retail price would “void all warranty”.
Furthermore the company falsely claimed that it manufactured Allure Gold products in the US when it in fact “sources all products from a supplier based in the US.
In order to address the ACCC’s concerns, Allure Gold has provided a court enforceable undertaking pursuant to section 87B of the Competition and Consumer Act 2010* .
As part of the undertaking, Allure Gold will:
- 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 the Allure Gold 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 program.
A copy of the undertaking is available on the ACCC’s website at http://www.accc.gov.au/content/index.phtml/itemId/968951
Retailers who wish to obtain a refund should contact Allure Gold on 1300 539 355.