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Spot the fraud: Jewellery associations run media campaign against fake schemes



Spot the fraud: Jewellery associations run media campaign against fake schemes

Around 500 jewellers from four jewellery trade associations, namely Chandigarh Sarafa Association, Mohali Sarafa Association, Panchkula Jewellers Association and Manimajra Jewellers Association, decided to create awareness through print media advertisements by launching a campaign on the second week of April.

Offers too good to be true

A member of one of the associations said jewellers have stooped so low that their activities are eating into the sales of the organized and ethical jewellers.

Sharing certain instances of fraud, the member said that it starts with unrealistic promotional offers.

 For instance, they offer free jewellery on the purchase of other jewellery. However, it becomes an issue when the same customer comes to resell or exchange the jewellery she bought only to know that exchange is applicable only when both items are returned together. Hence, such customers are forced to keep the jewellery.

There are other outlandish offers such as no making charges on jewellery. Making charges vary with designs, but no piece of jewellery can ever be made without a making charge applied on it. “Jewellers normally charge from 8% to 14%, but claims of zero making charge imply falsehood and compromise on purity standards of the jewellery,” said the member.

The right quality of gold will fetch margins anywhere around 3-5% and the only way to earn is from labour charge. Such jewellers sell 80% purity items and charge for higher purity from the customers. On several occasions, it has been found that the items are filled with lead.

Diamond jewellery is also unsafe, thanks to the ‘One plus one offer’. In such offers, jewellers don’t give lab certificates of authenticity. The customer does not know whether the diamond is real or fake.


In case of hallmark jewellery, one could get three types of products with the same certification. The first kind may contain products from a lot totally validated by hallmarking centers. The second kind might be a hallmarked product with quality interference by the jeweller. The third kind may be an outright fraudulent product where the jeweller has used personal laser machines to fake a hallmark.“ India is the only country where there is a returning guarantee on jewellery. That is why the customers need to be extra careful while buying jewellery. Let’s not buy gold jewellery like we buy vegetables in the market,” said the sarafa association representative.

Written by Manoj Chakraborty

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