A class-action lawsuit was recently filed against jewelry seller Cash4Gold, charging that the mail-in gold company “defrauds” consumers by falsely telling them their jewelry got lost in the mail and then frustrating them when they try to reclaim it.
The suit further charges that the company’s return policy is a “ploy,” since it “often” melts its customers’ jewelry before its return period has elapsed.
“Once a customer sends in jewelry, the Company is going to take it—either by ‘losing’ the jewelry, or by providing customers with a very low appraisal without any choice but to ‘accept’ because there is no return period,” the suit charges. “Either way, the Company wins, and customers lose.”
Cash4Gold, which made headlines earlier this year with its Super Bowl commercial featuring Ed McMahon and M.C. Hammer, had not filed a legal reply at press time but has strongly denied the charges.
TechCrunch.com, citing a source close to the company, said Cash4Gold is on track to make $50 million in profit this year.