4-4-2019
The Federal Trade Commission (FTC) of the United States has issued letters to eight synthetic diamonds companies warning their online advertisements of jewellery violate FTC’s Guides for the Jewelry, Precious Metals, and Pewter Industries. The guideline states that any precious stone name, including diamonds, is prohibited to describe a synthetic or lab-grown stone unless the name comes with a statement that is “clear and conspicuous disclosure that the product is not a mined stone.”
The companies have been given 10 days to indicate “steps they plan to take to revise their marketing so that it follows the Jewelry Guides and therefore complies with the FTC Act”. Failure to comply may result in enforcement actions if the FTC determines the companies engaged in unfair or deceptive acts or practices.
FTC advises synthetic stones companies to avoid describing their products that may falsely imply they have the same optical, physical, and chemical properties of mined diamonds. Companies should disclose clearly the nature of the product and the fact it is not a mined gemstone.
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