FTC sends warning letters to companies regarding diamond ad disclosures

FTC staff sent eight letters to jewelry marketers warning them that some of their online advertisements of jewelry made with simulated or laboratory-created diamonds may deceive consumers, in violation of the FTC Act.

The letters note that in July 2018, the FTC issued updated Guides for the Jewelry, Precious Metals, and Pewter Industries that provide marketers with information on how to make non-deceptive representations about jewelry and related products, including mined, lab-created, and simulated diamonds.
Failure to follow the Guides, the staff warns, may result in enforcement actions if the FTC determines the companies engaged in unfair or deceptive acts or practices. Such actions could result in civil penalties if the company engaged in practices knowing that the Commission has already deemed them deceptive in earlier litigation.

In the letters, the staff expresses concerns that some of the companies advertising fails to conform to the current version of the Guides, and may therefore deceive consumers. Specifically, the staff points out examples where the advertising might imply that a simulated diamond is a lab-created or mined diamond, or that a lab-created diamond is a mined diamond, or where required disclosures about the source of the diamonds are not proximate to the individual product descriptions.

To help educate the companies, the letters caution them not to use the name of any precious stone, including diamonds, to describe a simulated or lab-created stone, unless the name is immediately proceeded by a clear and conspicuous disclosure that the product is not a mined stone. The staff also encourages companies selling simulated diamonds to avoid describing their products in a way that may falsely imply that they have the same optical, physical, and chemical properties of mined diamonds.

The letters also note that similar non-deceptive disclosures are required when advertising jewelry containing precious stones other than diamonds, including emeralds and rubies, as well as pearls.

Several letters also note that the companies have advertised their jewelry as Eco-friendly,Eco-conscious,or sustainable, and that such terms can be interpreted to imply certain specific environmental benefits. Sellers must have a reasonable basis for making such claims for any products and the claims should be adequately qualified to avoid deception. The letters admonish the companies not to use unqualified claims such as Eco-friendly,Eco-conscious,or sustainable, as it is highly unlikely that they can substantiate all reasonable interpretations of these claims.

Finally, in each letter, the staff asks the companies to advise them within 10 days within receipt of steps they plan to take to revise their marketing so that it follows the Jewelry Guides and therefore complies with the FTC Act.

Source: idexonline.

FTC sends warning letters to companies regarding diamond ad disclosures

FTC staff sent eight letters to jewelry marketers warning them that some of their online advertisements of jewelry made with simulated or laboratory-created diamonds may deceive consumers, in violation of the FTC Act.

The letters note that in July 2018, the FTC issued updated Guides for the Jewelry, Precious Metals, and Pewter Industries that provide marketers with information on how to make non-deceptive representations about jewelry and related products, including mined, lab-created, and simulated diamonds.
Failure to follow the Guides, the staff warns, may result in enforcement actions if the FTC determines the companies engaged in unfair or deceptive acts or practices. Such actions could result in civil penalties if the company engaged in practices knowing that the Commission has already deemed them deceptive in earlier litigation.

In the letters, the staff expresses concerns that some of the companies advertising fails to conform to the current version of the Guides, and may therefore deceive consumers. Specifically, the staff points out examples where the advertising might imply that a simulated diamond is a lab-created or mined diamond, or that a lab-created diamond is a mined diamond, or where required disclosures about the source of the diamonds are not proximate to the individual product descriptions.

To help educate the companies, the letters caution them not to use the name of any precious stone, including diamonds, to describe a simulated or lab-created stone, unless the name is immediately proceeded by a clear and conspicuous disclosure that the product is not a mined stone. The staff also encourages companies selling simulated diamonds to avoid describing their products in a way that may falsely imply that they have the same optical, physical, and chemical properties of mined diamonds.

The letters also note that similar non-deceptive disclosures are required when advertising jewelry containing precious stones other than diamonds, including emeralds and rubies, as well as pearls.

Several letters also note that the companies have advertised their jewelry as Eco-friendly,Eco-conscious,or sustainable, and that such terms can be interpreted to imply certain specific environmental benefits. Sellers must have a reasonable basis for making such claims for any products and the claims should be adequately qualified to avoid deception. The letters admonish the companies not to use unqualified claims such as Eco-friendly,Eco-conscious,or sustainable, as it is highly unlikely that they can substantiate all reasonable interpretations of these claims.

Finally, in each letter, the staff asks the companies to advise them within 10 days within receipt of steps they plan to take to revise their marketing so that it follows the Jewelry Guides and therefore complies with the FTC Act.

Source: idexonline.

88 Carat Flawless Diamond Fetches $13.7 Million USD

A flawless 88.22 carat diamond fetched more than $13.7 million at the Hong Kong Sale of Magnificent Jewels and Jadeite held Tuesday.

The total, which includes commissions and fees, surpassed the high estimate of $12.7 million. The D color, type Ila, oval brilliant diamond was the top lot in the sale of 2oo items.

A Japanese private collector purchased the stone and named it the “Manami Star,” after his eldest daughter.

“We were thrilled to handle a diamond of such rarity, which now takes its place in the roster of top white diamonds to have come to the market here at Sotheby’s Asia,” said Patti Wong, Sotheby’s chairman in Asia.

Source: DCLA

88 Carat Flawless Diamond Fetches $13.7 Million USD

A flawless 88.22 carat diamond fetched more than $13.7 million at the Hong Kong Sale of Magnificent Jewels and Jadeite held Tuesday.

The total, which includes commissions and fees, surpassed the high estimate of $12.7 million. The D color, type Ila, oval brilliant diamond was the top lot in the sale of 2oo items.

A Japanese private collector purchased the stone and named it the “Manami Star,” after his eldest daughter.

“We were thrilled to handle a diamond of such rarity, which now takes its place in the roster of top white diamonds to have come to the market here at Sotheby’s Asia,” said Patti Wong, Sotheby’s chairman in Asia.

Source: DCLA

GIA Aligns Lab-Grown Reports with FTC Standards

The Gemological Institute of America (GIA) has updated the language in its lab-grown-diamond certificates to conform to the recent Federal Trade Commission (FTC) guidelines.

The grading lab will no longer use the term synthetic when referring to diamonds created in a lab, either inside its reports, or in the title, it said Friday.

The GIA will continue to use descriptive terms of color and clarity for lab-grown diamonds, indicating the range of grading they refer to on a scale in the report.

Additionally, the certificate will include a QR code which will link to the GIA’s report-check service, and provide consumers with more information about the growth process of lab-grown diamonds. It will also list any detected clarity treatments the stone has undergone.

The GIA will include a comment on the report disclosing the fact that the stone is man-made and has been produced using either chemical vapor deposition (CVD) or High-Pressure, High-Temperature (HPHT).

“Over the past few years, there has been an incredible advancement in the technology by which laboratory-grown diamonds are made,” said GIA CEO Susan Jacques. “With the increased availability of man-made diamonds in commercial qualities, sizes and quantities, and with greater consumer awareness of and desire for this product, GIA is making these changes to align with the revised FTC guides and changes in the market.”

Earlier this month, HRD Antwerp announced changes to its lab-grown-diamond reports, including updating the language to match those of natural diamonds, and expanding its color categories for synthetic stones. It will also launch a lab-grown-diamond-jewelry report in September.

The new GIA lab-grown-diamond reports will be available from July 1. Customers that have purchased synthetic-diamond reports from the GIA prior to that date can exchange them for a new certificate at no cost, the GIA noted.

Correction: The GIA will not be adopting the same 4Cs descriptions that it uses for natural diamonds in its lab-grown diamond grading reports, as initially indicated in the above story. It will continue to use descriptions such as “near colorless” and “very slightly included” when describing the color and clarity of a lab-grown diamond.

Image: A sample GIA lab-grown-diamond grading report. (GIA)

Source: Diamonds.net

GIA Aligns Lab-Grown Reports with FTC Standards

The Gemological Institute of America (GIA) has updated the language in its lab-grown-diamond certificates to conform to the recent Federal Trade Commission (FTC) guidelines.

The grading lab will no longer use the term synthetic when referring to diamonds created in a lab, either inside its reports, or in the title, it said Friday.

The GIA will continue to use descriptive terms of color and clarity for lab-grown diamonds, indicating the range of grading they refer to on a scale in the report.

Additionally, the certificate will include a QR code which will link to the GIA’s report-check service, and provide consumers with more information about the growth process of lab-grown diamonds. It will also list any detected clarity treatments the stone has undergone.

The GIA will include a comment on the report disclosing the fact that the stone is man-made and has been produced using either chemical vapor deposition (CVD) or High-Pressure, High-Temperature (HPHT).

“Over the past few years, there has been an incredible advancement in the technology by which laboratory-grown diamonds are made,” said GIA CEO Susan Jacques. “With the increased availability of man-made diamonds in commercial qualities, sizes and quantities, and with greater consumer awareness of and desire for this product, GIA is making these changes to align with the revised FTC guides and changes in the market.”

Earlier this month, HRD Antwerp announced changes to its lab-grown-diamond reports, including updating the language to match those of natural diamonds, and expanding its color categories for synthetic stones. It will also launch a lab-grown-diamond-jewelry report in September.

The new GIA lab-grown-diamond reports will be available from July 1. Customers that have purchased synthetic-diamond reports from the GIA prior to that date can exchange them for a new certificate at no cost, the GIA noted.

Correction: The GIA will not be adopting the same 4Cs descriptions that it uses for natural diamonds in its lab-grown diamond grading reports, as initially indicated in the above story. It will continue to use descriptions such as “near colorless” and “very slightly included” when describing the color and clarity of a lab-grown diamond.

Image: A sample GIA lab-grown-diamond grading report. (GIA)

Source: Diamonds.net

Last kimberlite trucked to plant at De Beers Victor mine

The last truckload of kimberlite from Ontario’s first and only diamond mine has left the pit. De Beers Canada said mining ceased on March 5 – 11 years to the day after the official opening in 2008.

The honour of driving the last truck went to Nancy Wesley, of Kashechewan First Nation. She worked at Victor for 11 years, as a haul truck driver, dozer operator and production drill operator.

Stockpiled kimberlite will keep the recovery plant running until early May.

The Victor mine was forecast to produce 6 million carats of diamonds over its life, but it beat that by recovering a total of 8 million carats – with a record 936,000 carats produced in 2018.

The project provided about 1,360 jobs and $3.7 billion of revenue to the province.

Source: DCLA