In the Loupe: Advertising Diamond, Gemstones and Pearls (original) (raw)

If you advertise or sell jewelry, the Jewelry Guides offer specific information on how to describe your products truthfully and how to disclose important information to potential buyers.

The claims you make about jewelry products must be accurate. The Federal Trade Commission's Jewelry Guides offer specific information on how to describe jewelry products truthfully and non-deceptively and how to disclose material information to consumers. This brochure highlights the sections of the Jewelry Guides that concern diamonds, other gemstones, and pearls. You may need to scrutinize your product descriptions to make sure they are not misleading and that they disclose material information to consumers.

Diamond Weight

Decimal Representations

If the diamond's weight is described in decimal parts of a carat, the figure should be accurate to the last decimal place. For example, “.30 carat” could represent a diamond that weighs between .295 and .304 carat. If the weight is given to only one decimal place, it should be accurate to the second decimal place: If you say a diamond weighs .5 carat, the diamond should weigh between .495 and .504 carat.

Fractional Representations

If the diamond's weight is described in fractions, the fraction may represent a range of weights. For example, a diamond described as 1/2 carat could weigh between .45 and .54 carat. If you use the fraction method, you also should conspicuously disclose that the diamond weight is not exact and the reasonable range of weight for each fraction or the weight tolerance used.

Disclosures in Catalogs, Printed Materials and Online Ads

If you use fractions to represent the weight of a diamond in catalogs or other printed materials, you should disclose - clearly and conspicuously on every page that includes a representation - that the diamond weight is not exact. You can give the range of weights for each fraction or the tolerances used on a separate page of the catalog or materials. But in that case, you should state where the consumer can find the information on every page that includes a fractional representation. For example, your catalog may say “Diamond weights are not exact. See the chart on page x for weight ranges.”

Simulated and Laboratory-created Diamonds

If you sell simulated or imitation diamonds, you should tell consumers that they are not diamonds by describing them as “imitation,” “simulated,” or some other word or phrase of like meaning so as to disclose, immediately preceding the word “diamond” and equally conspicuously, the nature of the product and the fact it is not a laboratory-created or mined diamond.

If you sell laboratory-created diamonds, you should tell consumers that they are not mined diamonds by describing them as “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” or some other word or phrase of like meaning so as to disclose, immediately preceding the word “diamond” and equally conspicuously, the nature of the product and the fact it is not a mined diamond. Do not use the terms “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” “synthetic,” or other word or phrase of like meaning unless the product has essentially the same optical, physical, and chemical properties as a mined diamond.

It’s permissible to describe laboratory-created diamonds as “cultured” if they have the same optical, physical, and chemical properties as mined diamonds and 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 diamond is not mined.

Diamond Testers and Moissanite

Thermal testers used to distinguish diamonds from cubic zirconia may not accurately identify moissanite - a laboratory-created gemstone that resembles a diamond. As a result, this stone may falsely register as a diamond on your thermal detector. How can you ensure that you recognize moissanite for what it is? A newer tester can do it for you, or you may have to learn other ways to distinguish moissanite from diamonds.

Gemstone Treatments

Gemstone treatments or enhancements refer to the way some gems are altered or treated to improve their appearance or durability. Some common treatments include:

The Jewelry Guides state that sellers should tell consumers about gemstone treatments in certain circumstances. If the treatment is not permanent, you should tell consumers how the stone has been treated and that the treatment is or may not be permanent. If the treatment requires special care, you should tell the consumer. It would be helpful to also give the consumer appropriate instructions to care for the gemstone. Even if a gemstone treatment is permanent and doesn’t create special care requirements, you should tell consumers about the treatment if it significantly affects the value of the gemstone.

How do you know whether a treatment has a “significant effect” on a stone’s value? Consider whether the treatment makes the product less valuable than if it contained an untreated stone. Think about value from the consumer's perspective and ask yourself how your customer would react if he learns about the treatment after leaving the store, say, when taking the stone to an appraiser or selling the piece.

The Guides suggest the following disclosures:

Misuse of Gemstone Names

You should not use the unqualified words “ruby,” “sapphire,” “emerald,” “topaz,” or the name of any other precious or semi-precious stone to describe any product that is not in fact a mined stone of the type described.

If you sell a simulated or imitation gemstone or other precious or semi-precious stone, you should tell consumers that it is not a mined stone by describing it as “imitation,” “simulated,” or some other word or phrase of like meaning so as to disclose, immediately preceding the name of the stone and equally conspicuously, the nature of the product and the fact it is not a laboratory-created or mined gemstone or other precious or semi-precious stone.

If you sell a laboratory-created gemstone or other precious or semi-precious stone, you should tell consumers that it is not a mined stone by describing it as “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” or some other word or phrase of like meaning so as to disclose, immediately preceding the name of the stone and equally conspicuously, the nature of the product and the fact it is not a mined stone. Do not use the terms “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” “synthetic,” or other word or phrase of like meaning unless the stone has essentially the same optical, physical, and chemical properties of a mined stone.

It’s permissible to describe a laboratory-created stone as “cultured” if it has the same optical, physical, and chemical properties as a mined stone and 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 stone is not mined.

Do not use the word “faux” to describe a laboratory-created or imitation stone because it would not likely disclose adequately that the stone is not a mined stone.

In addition to disclosing gemstone treatments as described above, you should avoid describing products made with gemstone material and any amount of filler or binder, such as lead glass, in the following ways:

In addition, you should avoid describing an industry product with the incorrect varietal name, such as by using the term “yellow emerald” to describe golden beryl or heliodor or the term “green amethyst” to describe prasiolite.

You should disclose information about treatments at the point of sale and in any print advertisement, mail order catalog, televised shopping program and online advertisement where a consumer can buy the treated gemstone without viewing the actual item in person.

Pearls

You should tell consumers if the pearls you're selling are cultured or imitation. Your ads should not use the word pearl - by itself - unless the advertised product consists only of natural pearls. If the product contains cultured pearls, the word “cultured” or “cultivated” - or a synonym - should immediately precede the word pearl.

A statement that discloses only the type of cultured pearl you’re selling - for example, freshwater, South Sea or Akoya pearls – will not suffice. Instead, say that the pearls are cultured: cultured freshwater pearls, South Sea cultured pearls or Akoya cultured pearls. If the product contains imitation pearls, use the word “artificial,” “imitation,” “simulated,” or a synonym immediately preceding the word pearl.

Pearl treatments refer to the way some pearls are altered to improve their appearance or value. Common treatments include bleaching, dying, or irradiation to change the color of a pearl or cultured pearl.

The Jewelry Guides state that sellers should tell consumers about pearl treatments in certain circumstances. If the treatment is not permanent, you should tell consumers how the pearl or cultured pearl has been treated and that the treatment is or may not be permanent. If the treated pearl or cultured pearl requires special care, you should tell the consumer. It would also be helpful to give the consumer appropriate instructions to care for it. Even if a pearl treatment is permanent and doesn't create special care requirements, you should tell consumers about the treatment if it significantly affects the value of the pearl or cultured pearl.

How do you know whether a treatment has a “significant effect” on a pearl’s value? Consider whether the treatment makes the product less valuable than if it contained an untreated pearl. Think about value from the consumer’s perspective and ask yourself how your customer would react if he learns about the treatment after leaving the store, say, when taking the pearl or cultured pearl to an appraiser or selling the piece.

For More Information

To learn more about making accurate representations of diamonds, other gemstones, pearls, and other jewelry products, including gold, silver and platinum, read the FTC's Guides for the Jewelry, Precious Metals and Pewter Industries.

If you have a dispute with a customer about a jewelry representation, contact the FTC for guidance. You also may contact the Jewelers Vigilance Committee's (JVC) Alternative Dispute Resolution Service. The JVC is an independent, non-profit organization formed to advance ethical practices in the jewelry industry. Contact the JVC by by phone at 212-997-2002 or online at https://www.jvclegal.org/contact.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.