When promotions become scams – a guide for savvy jewelry shoppers

November, with its dazzling array of promotions, is a shopping spree that constantly excites consumers. Huge discounts, promises of valuable products, and the pressure to buy now before they’re gone – all of these turn this month into a fertile ground for questionable deals. But alongside the celebrations, disappointments also surface: Many consumers find themselves, time and again, victims of commercial scams that leave them waking up from the dream with a large hole in their pockets.

And if there’s one industry where the sting is especially felt, it’s in the jewelry and diamond sector. A glittering world where the promises shine bright, but the small differences, almost invisible to the untrained eye, turn it into a minefield for consumers. Here, it’s very easy to deceive the unsuspecting buyer, and the accumulated damage is estimated at millions of shekels every year.

Now, just before the November shopping rush begins, Attorney Hadas Jacobson, CEO of the new consumer rights association, sounds a warning bell: “It’s important to stop, check, and be careful. Not everything that glitters is gold – and not every promotion is really a worthwhile deal.”

It’s Not Gold, It’s Rust

One of the most common scams in the jewelry industry is selling cheap metals under the claim that they are gold. According to the "Gold Standard Law" in Israel, any jewelry made of a gold compound weighing over 1 gram must be tested and stamped by the Jewelry Laboratory of the Standards Institute, using a laser engraving that indicates the purity of the gold in the compound, as declared by the seller. In contrast, silver jewelry and gold-plated items fall under a voluntary standard and are not required to be marked.

In practice, many sellers bypass the testing requirement and sell jewelry that doesn’t meet the standard, using metals much cheaper than pure gold. As a result, many consumers find themselves purchasing substandard jewelry and paying a high price for a product that doesn’t match the promises. Ironically, even consumers in China – a country that has become synonymous with counterfeits – find themselves victims of the very industry they helped foster: According to reports on CNBC, thousands of consumers in China fell victim to purchases of "fake gold," often marketed under the names "Gold 999" or "24 Karat" – the purest form of gold, containing 99.9% gold. In reality, the gold being sold doesn’t meet the declared standards.

For example, a user on one of the largest online shopping platforms reported buying five gold pendants for 1,985 yuan (around $280). However, an inspection revealed that the items were fake. Another case emerged when a different user purchased gold products through a major online retailer. The items that arrived were covered in rust, and an appraiser who examined them concluded unequivocally that they were counterfeit.

Before we explain what to do if you find out the jewelry you bought is fake, the more important question is: How can you avoid such a situation in the first place? Or in other words – how can you ensure that the product you are purchasing truly matches what was promised and the price you paid?

"Purchasing from a large, reputable store, whether in a physical space or online, provides full protection against counterfeits. Every product sold undergoes the strictest scrutiny, with a series of tests that eliminate the possibility of being scammed. Whether it’s engagement rings or any other piece of jewelry – the purchase is completely safe," says jeweler Gal Harat, CEO of Diamond Factory. Complaints on social media and a lot of bad reviews on Google can also serve as tools to assess the reliability of a business.

When it comes to buying jewelry with a diamond – it’s important to request a gemological certificate that specifies the diamond’s characteristics, such as color, clarity, and cut, and also verifies its legal origin. This certificate ensures that the purchased item is real and of good quality. However, unfortunately, even a gemological certificate is not always a sufficient guarantee of the diamond’s authenticity, as someone looking to sell a fake or flawed diamond may provide a counterfeit certificate that doesn’t reflect the actual properties of the diamond. In fact, discrepancies in diamond documentation can lead to price differences of thousands of dollars, which makes the accuracy of the gemological certificate critical.

In Israel, according to the law, diamonds are sold when set in jewelry, which makes it difficult to independently verify the quality of the diamond. Therefore, the GIA certificate is particularly important, as it provides reliable and detailed information about the diamond’s characteristics and ensures maximum transparency for the buyer. "In this regard, the safest guarantee for a purchase is through a well-known and reputable platform," notes Harat. "Such platforms will never risk selling a counterfeit or substandard diamond. They work exclusively with certified gemological institutes and adhere strictly to the highest standards."

"Unfortunately, there are many cases where sellers take advantage of the buyer’s lack of knowledge and sell diamonds that have undergone external treatments to improve their clarity and color," explains jeweler Danny Bar. "The value of such a diamond is significantly lower compared to a natural diamond that hasn’t undergone any treatment." The solution? As mentioned, purchase from a serious and reliable source.

And If You Fall into the Trap, Here’s What to Do:

"Selling fake gold or diamonds constitutes, beyond consumer deception, also a criminal offense, which allows anyone harmed by it to file a police complaint and, at the same time, file a lawsuit against the deceptive business. To file a lawsuit, one must obtain an expert opinion from a professional who will confirm that it is a counterfeit, as well as prove that the jewelry was presented as made of gold," says Attorney Jacobson.

According to her, the first step if a consumer encounters a counterfeit product is to contact the business, document the communication, and state the deception and the fact that the item is fake, while demanding the cancellation of the transaction. If the business does not comply with the request, the next step is to approach the Small Claims Court. "Filing a small claims case is a simple and accessible procedure. You must fill out a complaint form that includes the details of the case, and also provide an expert opinion that verifies that the item is a counterfeit. Attach a receipt or proof of purchase, as well as any evidence that confirms the seller’s deception when selling the jewelry."

She adds that the lawsuit can be filed online. It’s important that consumers not be deterred from approaching the Small Claims Court, as it is one of the most effective tools for standing up for their rights and deterring violators.