The consumer-watchdog blog Consumerist finds itself among the targets of legal action by Cash4Gold.com, an outfit that promises consumers a good return on unwanted jewelry. After following up on a whistle-blowing complaint posted by an ex-employee, Consumerist has been accused of “a false and defamatory posting” about Cash4Gold, and its writers have tried to set up interviews with the company’s CEO—only to get the legal department time and again.
Consumerist says its investigations jibe with those of others, and with allegations from former employees who say that, despite claims it offers “top dollar,” Cash4Gold often mails customers much less than 20% of the jewelry they send in. “One core mission of a consumer-oriented news site is to alert its readers to bad deals,” Ben Popken and Meg Marco write. “Everything we've learned about Cash4Gold’s offer so far places it in that category, in our view. That’s why we have resisted the legal efforts to silence our reporting.”
(Read more Cash4Gold stories.)