The House of Representatives Dec. 8 passed the GOLD Act, a
new law that targets mail order gold trade-in companies like Cash4Gold.
Act, which was approved by a 324–81 vote, requires the seller’s acceptance
of an offer before the transaction is complete, and would issue fines to
companies that melt down a consumer’s gold before an offer is accepted.
It also mandates that companies insure returned jewelry at
the same monetary value as the consumer originally insured it.
Cash4Gold was accused in
a class-action lawsuit of melting down customers’ items before they had a
chance to accept the company’s offer. The company denied the claim.
In a statement, the
bill’s sponsor, Rep. Anthony Weiner (D-Queens and Brooklyn), had harsh words
for the company, and called on the Federal Trade Commission to investigate
“Cash4Gold has used these bad economic times as a golden
opportunity to fleece hard working people in need of an extra dollar,” Weiner
said. “The passage of this bill is an important step towards giving consumers
who want to sell their gold the protections they need.”
Cash4Gold said in a statement it had pushed for legislation
in Florida, where it is based.
“Historically, the purchase of jewelry and precious
metals from consumers has been regulated and policed by states,” the
statement said. “This new national bill appears to override the authority
of the states, create additional federal regulation of the private sector and
serve as the first federal law to explicitly regulate consumer return policies
which also are typically handled at the state and local level. Cash4Gold will continue leading the
industry it pioneered, working side-by-side with the law enforcement and
regulatory agencies in states all across the country that have already been
involved with regulating the mail in gold buying industry.”