103. Consumer Protection Board: KultaRahaksi is misleading consumers in its advertising

The Consumer Protection Board has initiated proceedings regarding the advertising of KultaRahaksi (Kuld Rahaks Baltic OÜ), which promises to buy gold from consumers for the best price available. A test purchase of the Board indicated that this statement was incorrect and, consequently, the advertising was misleading.

KultaRahaksi distributes its adverts through printed periodicals and mailed flyers, inviting people to sell their valuable items to them, as they allegedly offer the best price. On 22 December, an inspector of the Consumer Protection Board made a test purchase, requesting valuations of a golden ring from KultaRahaksi and other similar companies. The results revealed that the price offered for the ring by another company was twice as high as the price offered by KultaRahaksi. The test purchase indicates that the superlative ‘best price’, used in the advertising of KultaRahaksi, is unjustified and provides consumers with incorrect information.

The Consumer Protection Board recommends people, who want to sell their valuable items, to request price quotations from several buyers, because the aforementioned example indicates that the difference in offered prices can be very high. Similarly, consumers are advised to be sceptical about any promotional statements such as ‘best price’, as they are often completely unfounded and used only as a clever marketing ploy.