Why Buying an Engagement Ring on Romantic Trip Abroad Is Fraught With Risks

An Ontario couple recently sought the help of CTV News Toronto after a $4,000 diamond engagement ring they purchased in February at a jewelry store in Cancun, Mexico, turned out to be a $50 fake.

The woman, who requested to be identified in a CTV News Toronto report under the pseudonym “May” because she was so embarrassed to have been caught in a fake diamond scam, said that she was “devastated” and “sickened” when, upon returning home, a certified appraiser told her the diamond wasn’t real.

What was more appalling is that the jewelry store behind the scam was “highly recommended” by their tour guide.

“‘They are perfect, you won’t get scammed.’ I remember them saying that specifically,” she told CTV News Toronto.

The Cancun jeweler promised to forward to the couple via email all the documentation regarding the diamond’s characteristics, including cut, clarity, carat weight and color. That never happened.

When the couple tried to have the charged reversed via their credit card provider, the company agreed to refund to the card, but then sided with the jeweler after the merchant complained.

The couple learned that they were on the hook for the full purchase price of $4,176.

“This was something that should have been a spur-of-the-moment, a beautiful moment, but turned into a headache for the last couple of months,” May told CTV News Toronto.

The bottom line is that couples should avoid getting caught up in the moment. An engagement ring purchase has to be a clear-headed decision.

“You go down there, you’re having a good time, and the salespeople just tell you what you want to hear,” Steven Knight, a spokesperson with the Canadian Jewellers Association (CJA) told CTV News Toronto. “They’re happy to take your money.”

He also noted that consumers who buy abroad have limited protection if something goes wrong.

“You actually are gambling because there is no way you know what you are getting, and you’re taking a chance spending that kind of money,” said Knight.

CTV’s Consumer Alert reporter Pat Foran reached out to the credit card company on the couple’s behalf. A spokesperson for the card company told the reporter that the investigation was ongoing and a favorable decision already had been granted to the couple.

In a column called “The Smart Traveler’s Guide to Buying Jewelry on Vacation,” Jewelers Mutual Insurance Company offered a number of helpful tips.

Check Up on the Business. Do your homework by checking the jeweler’s website, social media pages and reviews. Check message boards for any signs of deceit.

Stick With Well-Known Brands. And pay a price that you would normally expect from that brand. If a store claims to be able to sell you a high-end luxury watch for a fraction of its value, it’s likely a knock-off. After all, these stores are looking for a profit, and it’s unlikely they were able to obtain the merchandise at such a deep discount.

Read the Return Policy. Make sure you’re able to return the item with no conditions.
Read all the fine print on the back of the receipt to make sure you’re not signing any type of “sales contract.” The American Society of Appraisers found that despite “guarantees” of a full refund if the item appraises for less than you paid, the fine print often lists tight conditions. For example: “No return for diamonds unless they grade at least 2 color grades different.” Says Jewelers Mutual, “No well-respected jewelry store needs a condition like that.”

Beware of Import Taxes. Make sure to factor in any potential import taxes before you decide your jewelry shopping budget. You can check the latest US tariff data using their Interactive Tariff and Trade DataWeb. Canadian tariff info is here… 

Pay with a Credit Card. As with all major purchases, having an electronic record will make it much easier to dispute any issues or return the item. Take advantage of this protection.

Experienced travelers know that unless you are a gemologist, or very knowledgeable about jewelry pricing, you’re better off buying your fine jewelry at home from a reputable jeweler.

These same experienced travelers do acknowledge, however, that they will buy costume jewelry and handmade artisan pieces abroad.

For example, user 1025cruise on the cruisecritic.com message board commented, “Now, if you wanted to buy something unique, go for it. I’ve bought my wife jewelry in Bermuda from a shop in the mall there that looked nice, and wasn’t priced too bad. I’ve also gotten her something in Cozumel, but it wasn’t expensive at all and was something that really could only be gotten there (black coral).”

Credit: Image by Bigstockphoto.com.