In a bold stance against fraudulent practices within the diamond jewelry market, the Bangladesh Jewellers Association (BAJUS) has issued a warning to consumers, urging them to exercise caution when making purchases. The organization has raised concerns about a deceptive trend involving fake shops operating under the name ‘Diamond House’ in Dhaka and other regions of Bangladesh, deceiving customers with unverified diamond jewelry sales.
Consumer Protection Guidelines
BAJUS has taken proactive measures to shield consumers from such scams by providing comprehensive guidelines. The association emphasizes that any diamond jewelry weighing over 50 cents should come with proper certification. Additionally, it mandates that gold used in such jewelry should not be less than 18 carats. During the sales process, jewelers are instructed to clearly indicate any gemological quality indicators, ensuring transparency in transactions.
Penalties for Non-Compliance
To reinforce adherence to these regulations, BAJUS has outlined penalties for establishments failing to comply. Violators may face a substantial fine of 500,000 Bangladeshi Taka. Furthermore, BAJUS requires that transactions exceeding 1 million Taka in cash must be reported to the Bangladesh Financial Intelligence Unit (BFIU). These stringent measures aim to protect consumers and maintain the integrity of Bangladesh’s growing diamond jewelry market.
Global Impact on Diamond Markets
Recent challenges faced by the world’s leading diamond miners, such as Russia’s Alrosa PJSC and De Beers, underscore the broader impact on diamond markets. Temporary halts in sales, driven by a price collapse and increased inventories, were compounded by deceptive marketing tactics and subpar customer service, as observed in certain jewelry stores, including ‘She Said Yes.’ Dissatisfaction among customers, stemming from issues like cancellation fees, shipping errors, and product quality concerns, highlights the pressing need for regulatory measures similar to those introduced by BAJUS.
