Precious Metal Marking Act - Dos and Don’ts

The following DOs and Don’ts is ta ken from the Competition Bureau’s Bulletin on Corporate Compliance Programs- Appendix C

DOs and DON'Ts for the Precious Metal Marking Act :

DO

• When a precious metal article is quality marked, do ensure that a valid registered Canad ian trade-mark is also applied on the article or that an application for registration has been made with the Canadian Intellectual Property Office. The trade-mark must be applied by the same method as the quality mark.

DON'Ts

• Don't mark or advertise a precious metal article for quality - "14K" for gold, for example, or "sterling silver" unless the reference to the quality of a precious metal article is factual and in the manner prescribed by the Precious Metal Marking Act.
• Don't apply dual markings such as "14K - 18K" or "10K - Sterling" on precious metal articles unless the quality difference is discernible by colour. The quality making up the greater proportion in the article must appear first.
• Don't make any guarantee with respect to the durability or wearability of the precious metal plating of the articles for sale.
• Don't make any false or misleading representations to the public by any means for the purpose of promoting directly or indirectly the sale of precious metal articles.

For more information on the Precious Metal Marking Act contact JVC at
1-800-636-9536 or visit www.competitionbureau.gc.ca.

Precious metals, trademarks and quality marks.What you need to know.

As ethical jewellers in Canada it is important to know legislation and regulations that effect our industry. JVC will highlight some issues so as to educate and inform both the trade and consumers.

In Canada , precious metals that have a quality mark (i.e. 14K, ster.etc.) must also have a registered trademark. A quality mark alone is not sufficient. Please see the paragraph below taken from the Competition Bureau's revised web site www.competitionbureau.gc.ca .

"Description and quality marking of precious metals articles

The Precious Metals Marking Act provides for the uniform description and quality marking of precious metals articles (articles made with gold, silver, platinum or palladium) to help consumers make informed purchasing decisions. The Act prohibits the making of false or misleading representations related to precious metal articles. It also requires that dealers who choose to mark their articles with representations related to the precious metal quality, do so as prescribed by the Act and the Regulations. The quality mark must be accompanied by a trade-mark that has been applied for or registered with the Registrar of Trade Marks, Canadian Intellectual Property Office , Industry Canada ."

JVC WARNS THAT A LARGE NUMBER OF AMERICAN EXPRESS COUNTERFEIT TRAVELLERS CHEQUES ARE STARTING TO TURN UP IN CANADA

Be cautious when presented with an American Express Travellers Cheque. There are counterfeit products being circulated worldwide. It is essential that you identify and verify that the American Express Cheque products presented at your location are valid before accepting them.

Call 1-800-525-7641 toll free 24 hours a day if you have questions about accepting American Express Cheque products or suspicions about a transaction.

Cheque SECURITY FEATURES:

• Watch customer countersign Cheque and COMPARE to original signature
•   View Centurion WATERMARK in white area while holding Cheque to light. The Centurion on the left and the Centurion watermark should be facing the same direction.
• View the 'AMEX' security THREAD in middle area while holding Cheque to light. Fraudulent checks will not have the 'AMEX' security thread, or will have one that is blurry.
• View HOLOGRAPHIC FOIL at various angles to see image and color changes between Centurion, denomination and American Express logo.
• The Smudge test on the Cheque's back shows that both left denomination panels will smear when wet and the right panels do not. It's one of the easiest and most effective tests to Cheque authenticity.

POSSIBLE FRAUD INDICATORS:

• Customer presents a $500 or $1000 Travelers Cheque; these are rarely sold and thus more likely to be counterfeit, so be careful.
• Customer presents a Gift Cheque with a denomination greater than $100 - American Express only produces $10, $25, $50, and $100 denominations.
• If the Cheques were received through an online or Internet transaction.
• Cheque shows obvious signature alteration, erasure, or overwriting, or appears to have been washed.
• Customer makes multiple small purchases with large denomination Cheques.
• Customer indiscriminately purchases merchandise without regard for value, size, or color.
• Customer appears mainly focused on completing the transaction and receiving cash difference.

To become a JVC Crime Prevention member and receive the full Security manual and crime alerts contact JVC at 416-368-4840 or 1-800-636-9536 or email info@jewellersvigilance.ca . Visit our crime Prevention web site at www.jewellerycrimecanada.ca .

Money Laundering in Canada 2007 - Adding Knowledge and Building Skills

In December 2006, the federal government through passage of Bill C-25 has expanded the number of reporting sectors required to implement an Anti-money Laundering Comp liance Regime to include dealers in precious metals and stones.

We are pleased to announce that Phyllis Richard of Jewellers Vigilance Canada has agreed to present at the Money Laundering in Canada Conference taking place October 21-23, 2007, at the Fairmont Empress Hotel in Victoria B.C.

Phyllis has agreed to present an overview of what this sector is doing to comply with its new regulatory requirements, along with the various limitations and problems emerging with that process. Attendance at this session will not only benefit those curious as to how the sector has responded to their new requirements, but will also educate delegates from other reporting sectors where precious metal and gem dealers are their clients and will need to be assessed as to their risks for being targeted for money laundering. For example, Canad ian banks, among others, will have to assess the money laundering risks associated with precious metal and gems dealers that are account holders as part of the account opening and/or maintenance process.

This annual conference has been recognized as the “as the premier Canad ian conference in the AML Comp liance field” according to FINTRAC Director Horst Intscher.

The focus of this year's agenda is on providing practical content that can be readily applied to your business operations. Topics have been selected that are designed to build comp liance expertise, teaching new skills to further enhance your risk management tool box.

For more information on this conference as well as other educational opportunities please go to:

www.moneylaundering.ca/

JVC joins the Canadian Anti-Counterfeiting Network (CACN)

At a meeting with the RCMP in January, 2007 the issue of counterfeit jewellery and watches in Canada was discussed. As many of you know these fraudulent products have plagued the marketplace for many years. At the recommendation of the RCMP and the support of JVC contributors, JVC joined the Canad ian Anti-Counterfeiting Network (CACN).

The CACN is a non-profit coalition of stakeholders that has united in the fight against product counterfeiting and copyright piracy in Canada and internationally. Members include broad-based organizations and companies from a range of industries as well as law firms representing intellectual property rights holders. CACN’s mission is to significantly reduce and ultimately eliminate the manufacture, importation, distribution and sale of counterfeit products in Canada and abroad through public education, training of law enforcement, and lobbying for legislative change and increased resources.

Members of the CACN include the RCMP, the Canad ian Association of Importers and Exporters, Canad ian Institute of Plumbing and Heating, Canad ian Motion Picture Distributors Association, Canad ian Recording Industry Association, Calvin Klein, Microsoft Canada, Nike, Oakley Inc., Pfizer Inc., Proctor and Gamble and many more.

Some interesting facts from a CACN survey:

• Canad ians are three times more likely to knowingly or unknowingly acquire counterfeit product in Canada then our US counterparts.
• 28% of Canad ians admit knowingly buying counterfeit goods.
• 12% found out later that they purchased counterfeit goods.
• When they were informed that proceeds from the knockoff

market go to organized crime, 86% of respondents said they would be less likely to buy these products.

• It is currently not illegal to bring in counterfeit or pirated goods into Canada.
• Counterfeit goods in Canada now include almost any product you can think of.
• In many cases these products pose serious health and safety risks.
• World Health Organization estimates that 10% of all medication available is counterfeit.
• The motivation for this crime is greed, money and low risk of being caught or punished.
• The impact to the legitimate economy is between $20 billion and $30 billion annually.
• The US trade representative has placed Canada on a special 301 watch list, an annual review of countries deemed lacking in their protection of intellectual property, for the 12 th consecutive year.

Solutions are legislative change, more resources for law enforcement and education. We need to change the mind set of a nation that is feeding organized crime. (i.e. A woman buying a knock off handbag or a man buying a knockoff Rolex or Tag watch).

In June 2007, Par liament’s Standing Committee on Public Safety and National Security’s report on counterfeiting and piracy advocated decisive government action. Among the fourteen recommendations made were:

• Making it a criminal offence to knowingly possess counterfeit goods for the purpose of sale.
• Including a criminal remedy prohibiting anyone from knowingly engaging in counterfeiting by manufacturing, reproducing, distributing, importing or selling counterfeit products.
• Amend the Trade-marks Act and the Copyright Act to formally prohibit the importation of counterfeit or pirated products into Canada.

For the complete report go to http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?SourceId=209150

For more information on the CACN visit www.cacn.ca.

Intellectual Property Rights (IPR) Crime: Counterfeit Products by Andris Zarins, National Coordinator Intellectual Property Crime, RCMP

Intellectual Property Rights (IPR) Crime, the illicit trade in counterfeited and pirated products, is a rapidly increasing illegal activity around the world. There is not one sector of the economy that is immune to this scourge and many have suffered devastating financial losses. Economic injuries extend from IPR holders to private businesses as well as the loss of related tax revenue, while a lack of safety standards threaten the health and safety of our citizens.

It could be argued that this type of crime is perhaps the most pervasive of all, crossing all gender/age/societal/economic lines due to the wide variety of commodities involved and their many sales venues. The technological advances of the past decade have enabled consumers to enjoy enhanced quality products, be they household or personal in nature. Unfortunately, those same advances have been used by counterfeiters to produce replicas, ranging in quality from very poor to excellent. What is sadly lacking in the trade of fake goods, however, is the quality control and the testing to ensure that certain health and safety standards have been met. Organized crime invests the huge profits reaped from IPR crime to further their criminal activities. IPR crime should not be seen, therefore, as victimless, as public perception might indicate.

The RCMP conducts priority IPR crime investigations targeting the manufacturing, importation and wholesale distribution at the highest levels but will undertake significant retail investigations providing that the investigations are compatible with unit priorities and budget.The criminal investigations and initiatives will be focused towards:

• reducing the risk to the health and safety of Canad ians;
• reducing the funds being channeled to organized crime;
• protecting the Canad ian legitimate economy and tax revenue; and
• contributing to the fulfillment of Canad ian international obligations as pertaining to combatting this transnational crime.

IPR crime enforcement has become a complex issue that must be tackled in cooperation with other law enforcement agencies, governments at all levels, the private sector and our international partners. These partnerships provide the effective means to prevent, detect and deter IPR crime. For example,IPR holders need to monitor the marketplace for instances where their rights are being violated. The RCMP has developed the guide Reporting Intellectual Property Crime: A Guide for Victims of Copyright and Trade-mark Infringement in order to maximize the effectiveness of this partnership. A copy of the Guide can be obtained by contacting Andris.Zarins@rcmp-grc.gc.ca .

This is not a victimless crime. Perceptions need to be changed. Public awareness remains a key component in the IPR enforcement process. Through the efforts of the partnership between the Canad ian Anti-Counterfeiting Network (www.CACN.ca) and the RCMP, a series of four public awareness posters - in both official languages - has been developed and are now available. Please contact the CACN or the RCMP contacts listed at www.rcmp.ca/fio/intellectual_e.htm

We all suffer from IPR crime. Partnerships work. Let’s all work together to fight IPR crime!

You can't hide . . .
But you can protect your jewellery business

Crime reports regularly carry news of jewellery heists by criminals who consider theft a quick way to raise cash. The news is a constant reminder that working in the jewellery industry exposes you to the risk of being a victim of crime, sometimes crime that involves violence.

As the only insurer that specializes in insuring jewellery and jewellery businesses in Canada and the U.S., Jewelers Mutual understands the jewellery industry and how to minimize crimes against it. That’s why they launched a new online training course: Selling with Security. Easy to access at www.jmuniversity.com, the course teaches three key concepts that help retail jewellers sell with security and reduce theft.

The stats

Here is what Jewelers Mutual’s recent claim history reveals:

Most claims occur during open hours of business.

• On-premises crimes increased 27% over the last five years.
• Dollar losses from these crimes increased 94%.

Data from Jewellers Vigilance Canada ( JVC) supports Jewelers Mutual’s findings. For the past two years, grab and run crimes were the top occurring crimes against Canad ian jewellers.

Protect your employees, yourself, your family

There are numerous tips that jewellery owners can adopt to reduce losses. Jewelers Mutual has this information at your fingertips with the new Selling with Security course at JM University. The course introduces easy tips, real-life examples, research, and practice exercises to make sure you understand how to secure your business.

The Selling with Security course is free to Jewelers Mutual policyholders. Simply contact the Sales & Marketing Department at 800-558-6411 to register with JM University. Not only will you have access to two great security courses, you will be able to register other staff members, monitor their progress with each course, and extend or deactivate access as needed.

While the Selling with Security course offers tons of valuable information, it focuses on three key habits in the workplace:

1) Meet and Greet

• Greet each customer.
• Make immediate eye contact.
• Keep watching your customers and don’t turn your back at any time.

2) One on One

• One salesperson should assist only one customer at a time.
• Show only one item at a time to one customer.

3) Turn the Key

• Keep showcases locked when unattended.
• Exercise proper key control.
• Use wrist key holders.

While nothing will prevent loss completely, teaching staff members easy, key principles, and reinforcing them daily, puts you in greater control of diminishing your chances for loss. The online course is a great training tool for new employees, and an excellent refresher for anyone in the jewellery industry.

Visit JVC’s Crime Prevention Program site at www.jewellerycrimecanada.ca/ for a link to Jewelers Mutual’s site, as well as the new JM University site. To learn more about the course and how to register, contact Jewelers Mutual’s Sales & Marketing Department at 800-558-6411.

Jewelers Mutual Insurance Company offers coverage and people you can count on. Learn more at www.jewelersmutual.comor by calling 800-558-6411.

© 2007 Jewelers Mutual Insurance Company, Neenah, Wis. United States

JVC revises the Canadian Guidelines With Respect to the Sale and Marketing of Diamonds, Coloured Gemstones and Pearls

With all the changes taking place in the world of diamonds, gemstones and pearls, JVC is revising the Guidelines and is seeking your comments and input. Please visit our web site www.jewellersvigilance.ca to review of the draft Revised Edition 2007 once it is completed.

The Canadian Diamond Code Committee (CDCC) adds a Canadian diamond brand list to the Code web site.

The CDCC has developed a Canadian diamond brand list of Code Signatory brands with the intention to help consumers identify companies who sell Canadian diamonds. If you wish to have your Canadian diamond brand listed on the Code web site www.canadiandiamondcodeofconduct.com you must be a Code Signatory. Contact the Code office at info@canadiandiamondcodeofconduct.com or call 416-363-2968 to have your brand listed or to become a Code Signatory.

Crime Prevention Update

Welcome to La Corporation des Bijoutiers du Quebec!

JVC is please to announce a partnership in crime prevention with the Quebec Jewellers Corporation (CBQ).

This partnership will allow CBQ retail jewellers to receive the majority of our Crime Prevention Program in French including the all important ALERT Bulletins.

For more information contact:
In French - Lise Petitpas, Executive Director, CBQ
Telephone: 514-485-3333
Fax: 450-649-8984
Email: lisepetitpas@cbq.qc.ca

In English - JVC office
Telephone: 416-368-4840
Fax: 416-368-5552
Email: info@jewellersvigilance.ca

Strike Back Against Jewellery Crime

JVC recognizes crime is growing in Canada; specifically targeting luxury products, like jewellery, among the over 4000 jewellery retailers and the 1200 suppliers. In response to this alarming growth rate, JVC's mandate has expanded to now  include crime prevention, resource protection and safety awareness.

The Strike Back Against Jewellery Crime Package includes:

1. Access to a database on criminal activity within the jewellery industry.
2. Crime Prevention Manual.
3. Crime Prevention Video.
4. Wanted Bulletins on dangerous jewellery criminals.
5. Crime Prevention Bulletins on effective security procedures.
6. Free admission to the Strike Back Against Jewellery Crime Seminars.
7. Access to the JVC Security Library.

Please phone or e-mail for details.

Tel: 416-368-4840 or
Tel: 1-800-636-9536
Fax: 416-368-5552
E-mail: info@jewellersvigilance.ca

How to become a JVC Crime Prevention Sponsor

Please contact Phyllis Richard or Carla Adams to find out how you can become a crime prevention sponsor and have your logo appear on the
www.jvc-crimedata.com Home Page.