Jewelers who buy secondhand merchandise, including gold jewelry, need to follow existing laws, Jewelers Vigilance Committee said recently, citing a case in California.

According to the Register-Pajaronian newspaper, two jewelers in Watsonville, Calif., are facing misdemeanor charges for allegedly purchasing secondhand jewelry without a proper license. They also allegedly did not follow required crime prevention procedures, such as recording purchases and holding goods for a set period of time. One allegedly told police he had bought jewelry for 14 years without paperwork.

JVC warned that jewelers “buying from the public must be in compliance with [local] laws or risk a similar fate to the California jewelers.”