Jewellery and Watch Complaints - CHOICE # 438

Craving to buy that dream jewellery or watch of yours? Before you rush to the shop, be on your best vigilance for undesirable sales tactics.

Last year, 564 complainants sought the mediation of the Consumer Council in their complaints against watch and jewellery shops. But the spate of complaints has continued unabated and could, in fact, be on the rise.

Already, in the first quarter (January to March) of this year, the Council has received 189 cases involving jewellery and watches, an increase of 46 cases or 32% more than the number (143 cases) for the corresponding period last year.

In an effort to alert consumers to the potential pitfalls, the Council has highlighted in this April issue of CHOICE (No. 438) some typical complaint cases related to sale of jewellery and watches and precautions consumers can take to avoid being a victim.

In one case, Mr. Wu's mother-in-law was shown some watches which the salesperson claimed were of an Italian brand. She knew no English and could not understand the information printed on the packaging. She took the advice of the salesperson and purchased three watches for HK$2,400, believing that they were of a genuine Italian make.

Later, at home, Mr. Wu found the watches were not of an Italian brand. He alleged that salesperson had deliberately misled his mother-in-law, and demanded a full refund from the shop. The shop refused on the grounds that goods sold are not returnable nor refundable. Mr. Wu lodged a complaint to the Council. The shop admitted that the watches were only made of an Italian style but not made in Italy. As settlement, it offered Mr. Wu's mother-in-law an exchange for other products of equivalent amount in the shop.

Another complainant Mr. Miu purchased three watches of a renowned brand for HK$141,800. He later found that the watches were "parallel imported" goods. Worried that the watches were not provided with warranty for global maintenance, he negotiated with the shop in a bid to cancel the deal and seek refund - but all in vain. He turned to the Council for assistance. The shop admitted that only one of the watches was from the authorized dealer which would hence be covered by a global warranty. As settlement, the shop offered a warranty of two-year in-house maintenance service for the other two watches.

In a third case, Ms. Fan purchased a diamond ring with a certificate at the price of HK$38,000. She noticed the terms "Pinpoint, Internal Graining, Surface Graining" printed on the certificate. When she enquired the salesperson what they meant, she was told that such information bore no significance whatsoever and could be ignored. However, after the purchase, Ms. Fan learned on the internet that the terms referred actually to defects of the diamond. Dismayed for not being told the truth and worried that such information would affect the value of her diamond, she lodged a complaint to the Council requesting cancellation of the transaction and a refund. After reconciliation, the shop eventually agreed to offer Ms. Fan an exchange of other jewellery products in the shop.

Consumers are advised to be on guard for dishonest sales practices when purchasing expensive jewellery and watches:

- Misrepresenting the products as of foreign renowned brands, or the grading of jewellery in order to mark up the goods at a high price.

- Selling goods of parallel imports which do not come with global warranty from the authorized dealer.

- Providing false or misleading information about the products, such as the place of manufacture or the material used, or passing off an older model as a new one.

- Omitting important information about the commodity, such as defects, or if it has been re-processed, dyed or bleached.

- Inaccurate description on the content and weight of gold ornaments.

Consumers will do well to heed the following general tips when purchasing luxury goods:

- Do not rely on the verbal promises made by the salespersons; request to have the terms written down on the invoice or receipt.

- Retain the receipt, warranty card and commodity certificate etc. as proof of transaction in case of dispute.

- Check the payment amount is accurate on the receipt, and ensure the model number and serial number of the product (if any) are correctly printed on the receipt and warranty card.

- Any changes to the configuration of a product, such as changing a metal strap of a watch to a leather one, may affect the warranty.

- The warranty of some products may only be applicable to products sold through the retail shops of official dealers.

The welcome news is enhanced consumer protection is fast on its way. The Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance 2012 will come into force and operation later this year.

It introduces new enforcement mechanism and stipulates criminal proceedings against unfair trade practices. Traders who omit or hide material information that causes a consumer to make a transactional decision, are liable to commit the offence of misleading omission.