Jewellery shops in Dubai will no longer be able to charge additional credit card fee on buying gold jewellery after Department and Economic Development (DED) and Dubai Gold and Jewellery Group signed an agreement to install electronic price display units to ensure uniform and transparent pricing across retail jewellery outlets.
Mohammad Lootah, Executive Director, Commercial Compliance & Consumer Protection, DED, told reporters in a briefing that jewellery shops in Dubai cannot charge customers paying by credit a 2.5 per cent fee over the display price because the retailers have been given cushion of three to per cent to cover any losses.
The sudden drop or surge in the price of yellow metal will be adjusted in the next change under the five per cent buffer, he said.
“DGJG advocates for the maintenance of a 3-5 per cent mark-up over the international commodity price in order to protect the interest of the local gold & jewellery industry,” Tawhid Abdullah, Chairman of Dubai Gold and Jewellery Group, said in a statement.
DED’s Lootah said the consumer protection body is also considering a proposal to include craftsman or making charges on the purchase receipt so that the customers know the gold prices and the money they paid for the making charges.
Under the deal between the two bodies, the gold jewellery prices will be updated four times day – 9am, 2pm, 5pm and 8pm – in line with global rates of the yellow metal plus a 3-5 per cent cushion has been provided to the retailers on the price.
The rates – of 18ct, 21ct, 22ct and 24ct, will reflect be in line with international gold price fluctuations to ensure transparency and help consumers make purchases without the fear of being cheated.
In the first phase, nearly 500 members of the DGJG will install the new units and eventually over 1,000 outlets will have the electronic display across the emirate.
DGJG will offer from a 10-inch display screen to 22-inch screen to member outlets plus the GSM technology and maintenance for one year.
Retail members could renew this service next year by paying a service charge.