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Testimony to House on the Guarantee of a Legitimate Deal Act of 2009

Consumers Need Fair Rules of the Road for Online Cash-For-Metal Transactions Based upon our research, and the negative experiences of a significant number of customers, we believe that additional consumer protections are needed to create fair rules of the road for online cash-for-metal services. As described below, we generally do not recommend that consumers use such heavily advertised services, because high expenses for marketing make it unlikely that consumers will receive fair economic value for their jewelry or other items. In general, we think consumers would be better off to take their jewelry or other items to several local jewelers or pawn shops for appraisal, and solicit competing offers from reputable companies or third-party buyers.

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