Newly released FTC Jewelry Guides!
FTC focuses diamond definition & misuse
Recently on August 16, Federal Trade Commission (FTC) released its’ Final rule; adoption of revised guides.
16 CFR Part 23 of the Jewelry Guides for the Jewelry, Precious Metals and Pewter Industries says, The Federal Trade Commission adopts revised Guides for the Jewelry, Precious Metals and Pewter Industries. This document summarizes the Commission’s revisions to the previous Guides and includes the final Guides as revised.
Now FTC Diamond Definition is based on changes in the market, the final Guides eliminate the word natural from the definition of diamond in Section 23.12(a) because lab-created products that have essentially the same optical, physical and chemical properties as mined diamonds are also diamonds.
Definition and misuse of the word, diamond:
(a) A diamond is a mineral consisting essentially of pure carbon crystallized in the isometric system. It is found in many colors. Its hardness is 10; its specific gravity is approximately 3.52 and it has a refractive index of 2.42.
(b) It is unfair or deceptive to use the unqualified word, diamond to describe or identify any object or product not meeting the requirements specified in the definition of diamond provided above, or which, though meeting such requirements, has not been symmetrically fashioned with at least seventeen (17) polished facets.
Note to Paragraph (b): It is unfair or deceptive to represent, directly or by implication, that industrial grade diamonds or other non-jewelry quality diamonds are of jewelry quality.
(c) The following are examples of descriptions that are not considered unfair or deceptive:
(1) The use of the words, rough diamond to describe or designate uncut or unfaceted objects or products satisfying the definition of diamond provided above; or
(2) The use of the word, diamond to describe or designate objects or products satisfying the definition of diamond but which have not been symmetrically fashioned with at least seventeen (17) polished facets when, in immediate conjunction with the word diamond, there is either a disclosure of the number of facets and shape of the diamond or the name of a type of diamond that denotes shape and that usually has less than seventeen (17) facets (e.g. rose diamond).
(3) The use of the word, cultured to describe laboratory-created diamonds that have essentially the same optical, physical, and chemical properties as mined diamonds if the term is qualified by a clear and conspicuous disclosure (For example, the words laboratory created, laboratory-grown, [manufacturer name]-created, or some other word or phrase of like meaning) conveying that the product is not a mined stone.
The takeaways from the newly released FTC Jewelry Guides, here is a quick reference guide & courtesy of the JVC. Top five facts of the new FTC Jewelry Guides:
1: Diamond, still means diamond. In an advertisement/marketing piece in print or online, the word diamond alone still means a natural diamond from the earth.
- Laboratory grown diamonds must be disclosed using “Laboratory-grown,” “Laboratory-created,” “[Manufacturer name]-created,” or a similar or like word or phrase that clearly discloses the nature of the product.
- If the word “cultured” is used, you must also have one of the disclosures above; “cultured” cannot be used alone.
- It’s still okay to use the word “synthetic,” just not in a way that implies it’s a simulant.
2: The words, real, genuine, natural, semi-precious and precious can only be used to describe diamonds and colored stones from the earth; these words cannot be used to describe manufactured or artificially produced products.
3. The 10-karat minimum on gold has been eliminated. There is no floor on what can be called, gold so long as the fineness is disclosed.
4. All rhodium plating must now be disclosed.
5. Although these Guides are not law, they do have to be followed. The Guides are based on the Federal Trade Commission Act-a very real federal law that empowers the FTC to take action against you. In addition, a consumer or a group of consumers (in a class action) can take action against you for failure to follow the Guides and deceiving consumers, and a competitor can sue you for false or misleading advertising under Section 43(a) of the Lanham Act.
