Jewellers Association of Australia (JAA) CEO Ian Hadassin advised that the Code was released on November 23 after ACCC requested certain “last minute” changes.
The JAA believes that the Australian jewellery industry is largely unregulated and for some time both the ACCC and the JAA have been concerned about some unethical and in some cases illegal conduct by industry members, examples of which include misleading or deceptive practices, such as Comparative Price Advertising.
The code is designed to increase consumer confidence and trust when doing business with Code signatories and promote a culture among Code signatories of conducting their business fairly, honestly and ethically, and in accordance with industry best practice.
“The ACCC gave us the go-ahead, and then when we sent them the final version, it was forwarded to their solicitors, who then raised a couple of points they asked us to address from some clauses,” Hadassin said.
Points of concern involved in the drafting was that part of the code that said diamonds over one carat should come with a diamond grading certificate from a JAA-approved diamond grading laboratory. Consumers who’d made a diamond purchase could visit the JAA website to see the listed labs.
“That could be construed as a restraint of trade, according to the ACCC,” Hadassin said, explaining that the JAA would need to apply for a special permission from the ACCC to do something like that.
“Rather than wait for this permission to come through, which could take a while, we’ve decided to remove the part about listed labs and just say that certs must come from ‘reputable labs’,” Hadassin said. “Then we will, after the launch, go through the application process of getting a lab list accepted by the ACCC, updating the code later to take account of that.”
Hadassin explained that the Code is opt-out rather than opt-in. “We sought permission from the ACCC to have the code voluntary but on an opt-out basis. That means, any member can notify the JAA by December 7 that they wish to opt-out of the Code and that is registered,” he said.
“That means, unless a member writes to us they must comply with the Code,” Hadassin added.
“The JAA voluntary industry codes of practice can bring significant benefits to the industry and consumers”, said Dr Michael Schaper, Deputy Chair, ACCC.
It comes into force immediately in time for the Christmas shopping season.
Another point of concern for the ACCC was a point stating that the code administration committee could strip members of their participation if they were non-compliant. Again, the ACCC requested this point be removed, as it could be considered restraint of trade, according to Hadassin.
“We’ve just taken that point out,” he said. “All that will happen now is they’ll be referred to the ACCC, and it will be up to the ACCC to decide. The new code of practice ensures that consumers have a single and easy reference point to understand the responsibilities and obligations of the industry, including transparency and full disclosure, when selling particular types of jewellery,” Hadassin said.
He also believes that the code also benefits the industry, as consumers will naturally gravitate to those retailers who are signatories to the code.
“Quite simply, customers dealing with a signatory to the code are getting quality they can trust in. Further, this code will enable the JAA to quickly and easily resolve disputes which arise,” Hadassin added.
“When we ran our annual industry survey, well over 80 per cent of respondents wanted a code implemented,” Hadassin said. “So that indicated they do want a code, but they don’t necessarily want to comment on its content when the opportunity arises.”
Despite repeated attempts to reach an agreement with the National Council of Jewellery Valuers (NCJV) on the exact wording of clauses relating to valuations, the NCJV has refused to offer specific wording and have instead responded with general suggestions, according to Hadassin.
“I have been in contact with the NCJV in an attempt to resolve the issue of valuations at the point of sale. The NCJV were given every opportunity to make a relevant and detailed contribution to this issue in the code but have responded by refusing,” Hadassin said. “It is most disappointing and I believe the NCJV have done a disservice to their members by choosing not to take a stand. We’ve decided to go it alone because we couldn’t delay it any longer. We will, however, continue to talk with NCJV as we can always update the code at a later date – it’s not fixed in granite; it’s a living, breathing document and the JAA welcomes industry input on its content.”
The code specifically states that valuations should not be undertaken prior to a sale at retail being concluded, that the customer’s details, including name and address, should be on the valuation, and a valuation should never be used a part of a promotional two-price offer.