- by Carolyne Volpe Curley / Carolyne@WestEssexNOW.com Published 7:20pm
FAIRFIELD, NJ - On May 16, the New Jersey Division of Consumer Affairs in cooperation with the Fairfield Police Department and the Essex County Prosecutor’s Office investigated "cash-for-gold" businesses located at the 653 Route 46 Diamond Exchange in Fairfield.
In order to help ensure that consumers are not cheated when they sell their precious metals, New Jersey law requires the following:
- the store buying the metals must weigh the items and test their fineness within clear sight of the seller
- the store must use a scale that has been certified by the Office of Weights and Measures
- the store must post a sign clearly showing the prices they are offering, by weight and fineness, for various precious metals.
NJ law also attempts to protect those who have had their jewelry stolen and requires the following of jewelry stores:
- stores purchasing precious metals are required to to obtain an ID from the seller and create a serialized receipt which includes the date of the transaction, the name, address, and signature of the seller, the name and address of the buyer, and the types of precious metals purchased, their weight and fineness, and the prices paid
- the store must then immediately report that sale to the police
- the store must file the receipt for at least five years under the state’s criminal statutes
- the store must keep those precious metals in their original form for ten business days after their sales records have been delivered to police
The May 16 sting consisted of undercover visits to jewelry stores by officers who posed as consumers seeking to sell their jewelry. Later that day, the officers returned to the stores and announced that they were performing an inspection in keeping with the New Jersey’s Weights and Measures Act. The officers inspected the jewelry store’s scales and signage and obtained all store receipts.
The investigation was part of a crackdown on “cash-for-gold” shops across northern and central New Jersey which resulted in 936 civil citations for alleged violations of State consumer protection laws at 21 jewelry stores. The civil violations were filed as summonses in municipal court. Each civil violation carries a penalty of $500 to $1,000.
Fairfield Cited Jewelry Stores
As a result of this investigation, the State Office of Weights and Measures filed summonses in municipal court detailing a total of 241 violations at these six Fairfield stores:
- Six Star Jewelry
13 civil violations
This store allegedly failed to keep its scale in plain view of the seller, and failed to post the prices offered for precious metals. The store also on one occasion allegedly failed to maintain a serialized receipt with required information such as the weights, fineness, and/or types of precious metals purchased; and/or the seller’s name, address, signature, and/or proof of identification; and/or the buyer’s name and address; and/or the date of the transaction. - Haniken Jewelers
15 civil violations
This store allegedly failed to keep its scale in plain view of the seller, failed to use a scale that had been secured with a lead and wire seal to prevent tampering with the scale device; and failed to post the prices offered for precious metals. The store also on at least one occasion allegedly failed to maintain a serialized receipt with required information such as the weights, fineness, and/or types of precious metals purchased; and/or the seller’s name, address, signature, and/or proof of identification; and/or the buyer’s name and address; and/or the date of the transaction. Weights and Measures officers also confiscated this store’s scale because it was of a type not approved for the purchasing of jewelry. - Elizabeth Jewelry
16 civil violations
This store allegedly failed to keep its scale in plain view of the seller, failed to use a scale that had been secured with a lead and wire seal to prevent tampering with the scale device; and failed to post the prices offered for precious metals. The store also on at least one occasion allegedly failed to maintain a serialized receipt with required information such as the weights, fineness, and/or types of precious metals purchased; the seller’s name, address, signature, and/or proof of identification; the buyer’s name and/or address; and/or the date of the transaction. The store also allegedly failed to retain jewelry in its original form for two full business days. Weights and Measures officers confiscated this store’s scale because it was of a type not approved for the purchasing of jewelry. - David’s Sons Jewelry
19 civil violations
This store allegedly failed to use a scale that had been secured with a lead and wire seal to prevent tampering with the scale device; and failed to post the prices offered for precious metals. The store also on at least two occasions allegedly failed to maintain serialized receipts with required information such as the weights, fineness, and/or types of precious metals purchased; and/or the seller’s name, address, and/or signature; and/or the buyer’s name and address; and/or the date of the transaction. The store also allegedly failed to retain jewelry in its original form for two full business days. - John Anthony Jewelers
82 civil violations
This store allegedly failed to keep its scale in plain view of the seller, failed to use a scale that had been secured with a lead and wire seal to prevent tampering with the scale device and failed to post the prices offered for precious metals. The store also allegedly failed to maintain serialized receipts with required information such as the weights, fineness, and/or types of precious metals purchased; and/or the seller’s name, address, signature, and/or proof of identification; and/or the buyer’s name and address; and the date of the transaction. Weights and Measures officers confiscated this store’s scale because it was of a type not approved for the purchasing of jewelry. - Jewelry by Marcus
96 civil violations
This store allegedly failed to keep its scale in plain view of the seller, failed to use a scale that had been secured with a lead and wire seal to prevent tampering with the scale device; and failed to post the prices offered for precious metals. The store also allegedly failed to maintain serialized receipts with required information such as the weights, fineness and/or prices paid per unit of weight of precious metals purchased; and/or the seller’s signature and/or proof of identification; and/or the date of the transaction.
“New Jersey’s cash-for-gold laws serve two important functions.
On one hand they require jewelers to be transparent about their pricing
and the evaluation of precious metals when buying from consumers.
On the other hand, they help fight the sale of stolen jewelry,
by requiring the buyers to maintain a fully detailed record
that can be provided to police,” Acting Attorney General John J. Hoffman said.
The statewide investigation, led by the Division of Consumer Affairs and Office of Weights and Measures, will continue across New Jersey and will include undercover operations, as well as unannounced inspections at jewelry shops that offer to buy precious metals from consumers.
“Especially now that the price of gold appears to be rising,
we are focusing on the integrity of those businesses that attract consumers
who may face financial hardships with the promise
of cash for gold, silver, and precious jewelry,”
Division of Consumer Affairs Acting Director Steve C. Lee said.
“This enforcement action is just the beginning of a year-long focus
to ensure jewelry stores comply with our cash-for-gold laws.”
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