Consumer Protection Cracks Down on Deceptive Gold Offers

Hani Milad, Head of the General Division and Head of the Division at the Cairo Chamber of Commerce has warned gold retailers against the promulgation of fictitious discounts and offers, including the "zero manufacturing" claim.

Such promotions fall under the purview of the Consumer Protection Agency's regulations, which necessitate obtaining approvals and declarations from the agency. Moreover, the magnitude of the discounts presented to customers must be explicitly defined, with adherence to governmental oversight ensuring compliance.

Milad further clarified that the Consumer Protection law dictates penalties for deceptive offers, ranging between 50,000 and 2 million Egyptian pounds, viewing them as misleading practices.

Highlighting the sector's proactive measures, Milad noted the Gold Division's intent to conduct several awareness seminars in collaboration with the Consumer Protection Agency. The objective is to educate traders about the consumer protection laws to prevent inadvertent legal infringements.

Elaborating on the "zero manufacturing" offers, Milad expressed concerns that such items might have been dormant for years, thereby not incurring any manufacturing charges.

Alternatively, some traders might dupe customers by levying manufacturing charges camouflaged as value-added tax or stamp charges, or the product might not conform to the specified quality standards.

On a related note, Milad commented on the trend of selling gold bars in sealed packaging, deeming it a marketing strategy. The growing popularity of "cashback" policies on these bars has prompted companies to advise customers to preserve the packaging for potential resale. However, he dismissed concerns of potential fraud from sealed gold bars, emphasizing the stringent oversight mechanisms governing gold markets.