NEW YORK—New legislation that would regulate gold-dealing companies’ “relentless advertising” on TV will be discussed at a Sept. 23 Congressional hearing of the Subcommittee on Commerce, Trade, and Consumer Protection, announced Rep. Anthony Weiner (D-Queens and Brooklyn).
In a May report, Weiner accused precious metals and rare coins companies such as Goldline International Inc. of using “aggressive and high-pressure” sales tactics and conservative spokespersons like Fox News’ personality Glenn Beck of selling overprized gold coins.
“Goldline rips off consumers, uses misleading and possibly illegal sales tactics, and deliberately manipulates public fears of an impending government takeover,” Weiner said in a press release when the report was released, adding that Beck often warns of the collapsing of U.S. dollar value and the need to purchase gold as an alternative to “safeguard” the consumers’ “livelihood.”
After conducting an investigation, Weiner’s office found that Goldline markup is 90 percent above the melt value of the coin and 47 percent higher than that of its competitors.
He highlighted that the security division of Missouri Secretary of State’s office filed a consent order against the Santa Monica-based company and recovered over $200,000 for an elderly consumer that had been ripped off.
Subsequently, Santa Monica city attorney and the Los Angeles County district attorney launched a joint investigation into the company.
“There are two main types of complaints we’re seeing,” Adam Radinsky of the Santa Monica city attorney’s office told ABC News after the investigation was launched in July. “One is that customers say that they were lied to and misled in entering into their purchases of gold coins, and the other group is saying that they received something different from what they had ordered.”
Despite the claims, the precious metals seller stated that only 17 complaints have been filed against them with the Federal Trade Commission over the past four years.
“This represents less than [0.1 percent] of Goldline’s transactions for that period,” the company stated.
Since Weiner’s report, Goldline has issued statements and press releases saying that the company has never been contacted by Weiner to tell its side of the story.
Weiner, who sits on the Subcommittee on Commerce, Trade, and Consumer Protection, introduced a bill in May that would require Goldline to fully disclose its business practices.
Goldline, however, claims that it has one of the “most comprehensive disclosures in the industry,” providing customers with the information they need to make decisions about acquiring precious metals.
Goldline has been rated as an A-plus company by the Better Business Bureau.
In a May report, Weiner accused precious metals and rare coins companies such as Goldline International Inc. of using “aggressive and high-pressure” sales tactics and conservative spokespersons like Fox News’ personality Glenn Beck of selling overprized gold coins.
“Goldline rips off consumers, uses misleading and possibly illegal sales tactics, and deliberately manipulates public fears of an impending government takeover,” Weiner said in a press release when the report was released, adding that Beck often warns of the collapsing of U.S. dollar value and the need to purchase gold as an alternative to “safeguard” the consumers’ “livelihood.”
After conducting an investigation, Weiner’s office found that Goldline markup is 90 percent above the melt value of the coin and 47 percent higher than that of its competitors.
He highlighted that the security division of Missouri Secretary of State’s office filed a consent order against the Santa Monica-based company and recovered over $200,000 for an elderly consumer that had been ripped off.
Subsequently, Santa Monica city attorney and the Los Angeles County district attorney launched a joint investigation into the company.
“There are two main types of complaints we’re seeing,” Adam Radinsky of the Santa Monica city attorney’s office told ABC News after the investigation was launched in July. “One is that customers say that they were lied to and misled in entering into their purchases of gold coins, and the other group is saying that they received something different from what they had ordered.”
Despite the claims, the precious metals seller stated that only 17 complaints have been filed against them with the Federal Trade Commission over the past four years.
“This represents less than [0.1 percent] of Goldline’s transactions for that period,” the company stated.
Since Weiner’s report, Goldline has issued statements and press releases saying that the company has never been contacted by Weiner to tell its side of the story.
Weiner, who sits on the Subcommittee on Commerce, Trade, and Consumer Protection, introduced a bill in May that would require Goldline to fully disclose its business practices.
Goldline, however, claims that it has one of the “most comprehensive disclosures in the industry,” providing customers with the information they need to make decisions about acquiring precious metals.
Goldline has been rated as an A-plus company by the Better Business Bureau.
