Diamonds.net – RETAIL BUSINESS ALERT



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RAPAPORT … The United States Federal Trade Commission (FTC) published
new guides for the jewelery industry. Although these guidelines create confusion by
broaden the definition of the word "diamond" to include synthetic diamonds
they continue to restrict the use of the word "diamond" to natural diamonds
unless the word is immediately preceded by a word or phrase clearly
discloses that the product is not an extracted diamond.


All synthetic
diamonds and colored stones must be clearly disclosed. The word diamond can not
be used for synthetic diamonds without the words immediately preceding indicating
it is not a natural diamond. The word diamond alone without a qualifier can
only be used for natural diamonds.

Please note that the following selections of the new FTC
the guides apply to diamonds.

§ 23.25 (a) "It is unfair or misleading to use the
unqualified words & # 39; & # 39; ruby, & # 39; & # 39; & # 39; sapphire, & # 39; & # 39; & # 39; emerald, & # 39; & # 39; & # 39; & # 39; topaz, & # 39; & # 39; or the name
any other precious or
semiprecious stone
to describe any product that is not actually extracted
(b) It is unfair or misleading to use the word & # 39; & # 39; ruby & # 39 ;.
"Sapphire", "emerald", "topaz" or the name of any other precious or semi-precious stone,
or the word "stone", "birthstone", "gemstone", "gemstone", or a term similar to
describe a laboratory created in the laboratory, [manufacturer name] -created,
synthetic stone, imitation or simulated, unless that word or name is
immediately preceded with equal visibility by the word
& # 39; & # 39; Grown in the laboratory, & # 39; & # 39; & # 39; created in the laboratory, & # 39; & # 39; & # 39; & # 39; [manufacturer name] -created, & # 39; & # 39;
or another word or expression of the same meaning, or by the word "imitation" or
"Simulated", in order to clearly disclose the nature of the product and to
it is not a mined gem.

§ 23.27 "Misuse of the words" real "& # 39; & # 39; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; 39;
"Natural", "precious", etc. It is unfair or misleading to use the word
"True", "authentic", "natural", "precious", "semi-precious" or similar
terms to describe any product of the industry that is manufactured or produced
artificially. "

The Rapaport Group believes that the current FTC guidelines
should be changed. They created confusion and misunderstanding
redefine the word "diamond" to include synthetic, artificial, unnatural, artificial,
imitation diamonds that have "essentially the same optics, physique, and
chemical properties as mined diamonds. "FTC guides ignore naturalness as
definition of diamond, focusing on physical properties instead of scarcity and
differentiation of value which are key factors in the product definition and
consumer protection.

We will communicate a series of questions and requests for
changes to the guides in the future. The full text of the new FTC guides
with the statement of the FTC Basic and Purpose is available here:

We welcome your comments to [email protected]. The FTC can also be contacted
directly:
Reeneh L. Kim, Solicitor + 1-202-326-2727 Division of
Law Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600
Pennsylvania Ave. NW, Washington, DC 20580

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