MajorsJan 30, 2025
WJA Chapter Leaders Resign as Fallout From DEI Remarks SnowballsThe boards of at least five chapters have resigned in response to controversial statements the WJA national board president made last month.
EditorsApr 05, 2019
A Quick Review of the FTC’s Rules on Lab-Grown Diamonds
Our Editor-in-Chief Michelle Graff offers a refresher following the Federal Trade Commission’s distribution of eight warning letters regarding advertisements for lab-grown diamond jewelry or diamond simulants.
Earlier this week, news broke that the FTC had sent letters to eight companies warning them that their advertisements for lab-grown diamond jewelry or diamond simulants (CZ, moissanite, etc.) could be deceptive.
The distribution of these letters comes less than a year after the commission’s long-awaited overhaul of the Jewelry Guides, the FTC-created rulebook that outlines the terms marketers should, and shouldn’t, use to describe jewelry to consumers.
When the new Jewelry Guides dropped last summer, it seemed, to me anyway, that many lab-grown diamond companies perceived the revisions to be a big victory for them, perhaps bigger than it actually was. They’ve since gone a little overboard with their marketing, either thinking that it was allowed or that nobody was watching or would notice.
But that, apparently, is not the case.
The FTC is paying attention and is interpreting the revised guides more strictly than some had expected, including Jewelers Vigilance Committee President and CEO Tiffany Stevens, whose organization is tasked with (among many other things) keeping the industry’s advertising in check.
Stevens told me in an email Thursday that, “We are extremely encouraged that the FTC is putting focus on our industry in this way at this time. The guides had not been updated since the ‘90s, and in our conversations with the FTC, we emphasized that the update really wasn’t complete until they took some enforcement action to demonstrate the meaning and limits of the new guides.
“We were seeing evidence of some players really creating their own reality and running wild beyond any reasonable interpretation of the new guides. We would reach out to stem the action and also see incidents in our mediation practice, but there is nothing like having such a loud and clear action from the federal government itself.”
All this being said, I thought in light of this week’s events, now would be a good time for a refresher on the FTC’s Jewelry Guides as they pertain to man-made diamonds and simulants.
1. If a product is a lab-grown diamond, then the fact that it is man-made must be clearly and conspicuously stated.
The distribution of these letters comes less than a year after the commission’s long-awaited overhaul of the Jewelry Guides, the FTC-created rulebook that outlines the terms marketers should, and shouldn’t, use to describe jewelry to consumers.
When the new Jewelry Guides dropped last summer, it seemed, to me anyway, that many lab-grown diamond companies perceived the revisions to be a big victory for them, perhaps bigger than it actually was. They’ve since gone a little overboard with their marketing, either thinking that it was allowed or that nobody was watching or would notice.
But that, apparently, is not the case.
The FTC is paying attention and is interpreting the revised guides more strictly than some had expected, including Jewelers Vigilance Committee President and CEO Tiffany Stevens, whose organization is tasked with (among many other things) keeping the industry’s advertising in check.
Stevens told me in an email Thursday that, “We are extremely encouraged that the FTC is putting focus on our industry in this way at this time. The guides had not been updated since the ‘90s, and in our conversations with the FTC, we emphasized that the update really wasn’t complete until they took some enforcement action to demonstrate the meaning and limits of the new guides.
“We were seeing evidence of some players really creating their own reality and running wild beyond any reasonable interpretation of the new guides. We would reach out to stem the action and also see incidents in our mediation practice, but there is nothing like having such a loud and clear action from the federal government itself.”
All this being said, I thought in light of this week’s events, now would be a good time for a refresher on the FTC’s Jewelry Guides as they pertain to man-made diamonds and simulants.
1. If a product is a lab-grown diamond, then the fact that it is man-made must be clearly and conspicuously stated.
When the FTC released its revised Jewelry Guides in July 2018, much was made about the removal of the word “natural” from the definition of a diamond. Too much, in my opinion.
The FTC made the change to the definition of a diamond in its Jewelry Guides before the section on diamonds as a way of saying: We will lay out the guidelines in this coming section that apply to diamonds, and by diamonds we mean “a mineral consisting essentially of pure carbon crystallized in the isometric system” that was either mined from the earth or grown in a factory.
The FTC made the change to the definition of a diamond in its Jewelry Guides before the section on diamonds as a way of saying: We will lay out the guidelines in this coming section that apply to diamonds, and by diamonds we mean “a mineral consisting essentially of pure carbon crystallized in the isometric system” that was either mined from the earth or grown in a factory.
Editors' Picks
Sponsored by
Nothing changed about how lab-grown diamond companies, and sellers of lab-grown diamonds, have to describe the product to consumers.
The FTC says they still must make it clear that the product is man-made by using “clear and conspicuous” disclosure with the word diamond; the three terms the FTC recommends using are laboratory-grown, laboratory-created or [manufacturer name]-created.
Cultured is OK too, but it has to be “immediately accompanied, with equal conspicuousness” by one of the three terms; it cannot stand alone.
When “diamond” appears by itself, it still means a natural diamond.
And those three qualifying terms mentioned above, the FTC noted this week, must be “proximate” to the product description, not in a place where consumers aren’t likely to see them. It mirrors the rules the commission has laid out for paid posts by influencers, who are supposed to write “#ad” where people can see it, not bury it in the middle of a caption.
Companies cannot relegate disclosures to FAQ or education pages, with FTC Consumer Education Specialist Bridget Small noting in a blog published on FTC.gov Tuesday: “Some businesses only put information about how a stone was really made on a ‘diamond education’ webpage, rather than in or near an ad where shoppers were more likely to see it.”
2. Social media is a not a free-for-all.
A lot of the advertising the FTC found to be problematic was spotted on social media, said Robert Frisby, an attorney with the commission who spoke to National Jeweler Thursday as an FTC staff member, not on behalf of the commission.
The FTC reminded companies that the Jewelry Guides and the truth-in-advertising provisions of the FTC Act apply on Instagram, Facebook and Twitter, too.
Frisby also urged marketers to be cautious when using hashtags, for two reasons.
First, if a marketer wants to use a hashtag for disclosure purposes—e.g., #labgrown—they have to consider the overall impression of the advertisement. Is that hashtag making it obvious enough to consumers what the product is?
Secondly, marketers need to be mindful of making claims with hashtags. For example, #diamonds might imply that a product is mined, since the FTC still considers “diamond” alone as referencing a mined diamond.
3. CZ and moissanite aren’t the same thing as diamond (either natural or man-made), and that must be clear too.
In addition to the ads for lab-grown diamonds, the FTC noted that it spotted advertising for simulated diamonds that implied the stone was either a lab-grown or mined diamond.
The commission “encourages” companies selling simulated diamonds to avoid describing their products in a way that “falsely implies” what they are selling has the same optical, physical and chemical properties as mined or lab-grown diamonds.
4. Be cautious when making “eco” claims.
The FTC reminded companies that the Jewelry Guides and the truth-in-advertising provisions of the FTC Act apply on Instagram, Facebook and Twitter, too.
Frisby also urged marketers to be cautious when using hashtags, for two reasons.
First, if a marketer wants to use a hashtag for disclosure purposes—e.g., #labgrown—they have to consider the overall impression of the advertisement. Is that hashtag making it obvious enough to consumers what the product is?
Secondly, marketers need to be mindful of making claims with hashtags. For example, #diamonds might imply that a product is mined, since the FTC still considers “diamond” alone as referencing a mined diamond.
3. CZ and moissanite aren’t the same thing as diamond (either natural or man-made), and that must be clear too.
In addition to the ads for lab-grown diamonds, the FTC noted that it spotted advertising for simulated diamonds that implied the stone was either a lab-grown or mined diamond.
The commission “encourages” companies selling simulated diamonds to avoid describing their products in a way that “falsely implies” what they are selling has the same optical, physical and chemical properties as mined or lab-grown diamonds.
4. Be cautious when making “eco” claims.
Several of the letters the FTC sent to allegedly offending companies noted that many businesses are advertising their jewelry as “eco-friendly,” “eco-conscious” or “sustainable.” The FTC advises against making such “unqualified” claims, meaning using the words without explaining exactly what they mean.
“Some of the letter recipients, in our view, were not qualifying them adequately,” said Frisby.
For example, if a company is claiming its product is “eco-friendly” because it’s recyclable, or because it takes measures to use less energy or less water in the manufacturing process, then the ad has to state this. It can’t just state “eco-friendly” because there are too many ways consumers can interpret that.
In addition, companies need to have publicly available evidence backing up their claims, and the amount of scientific evidence that’s needed increases with certain claims, such as “carbon neutral.”
The FTC has an entire rulebook dedicated to “eco” claims, separate and apart from the Jewelry Guides. It is called the “Green Guides” and can be accessed on FTC.gov.
The JVC’s Stevens added a point I’ve made in writing about lab-grown diamonds on this blog before: a product cannot be labeled as “green” or “eco-friendly” simply because it is perceived to be “greener” than the same product next to it.
She explained it like this: “One of the recurring issues we see with the environmental claims is the use of relative standards (i.e., Michelle speaks 20 words of Spanish and Tiffany speaks one so Michelle is fluent in Spanish) rather than what the standard actually is under the [FTC’s] Green Guides, which is an absolute (i.e., Michelle is either fluent in Spanish or not, regardless of how competent the person standing next to her is.)”
Before I wrap up this blog, it’s worth noting that the FTC is not a law enforcement body; no one is going to prison for putting out diamond jewelry ads that violate the FTC’s Jewelry Guides.
However, the commission can levy fines, and, what might even be worse for these companies, the commission publicizes when it writes warning letters, which can result in coverage not just from trade press but consumer press as well.
Reuters picked up the story about the FTC’s warning letters, as did Ad Age.
The story even made it onto Page Six of the New York Post, which ran it with the headline, “Leonardo DiCaprio-backed diamond company accused of false advertising,” zeroing in on the Diamond Foundry.
The FTC is not disclosing the names of the seven other companies that received warning letters without a Freedom of Information Act request.
A spokeswoman for the Diamond Foundry said the company is limited as to what it can say at this point, but released the following statement: “We have received an inquiry from the FTC, which we take seriously and will respond to in comprehensive detail. We pride ourselves on being a lab-grown diamond producer, and this point of differentiation is what our success is built on. We have worked collaboratively with the FTC for years, and the FTC has been a great supporter of the industry and a champion of change for consumer transparency.”
The FTC is giving the companies it contacted 10 days to let the commission know how they plan to alter their advertising.
The Diamond Foundry said it will share follow-up information when available.
Stay tuned. I bet this isn’t the last we’ll hear from the FTC regarding the revised Jewelry Guides.
For example, if a company is claiming its product is “eco-friendly” because it’s recyclable, or because it takes measures to use less energy or less water in the manufacturing process, then the ad has to state this. It can’t just state “eco-friendly” because there are too many ways consumers can interpret that.
In addition, companies need to have publicly available evidence backing up their claims, and the amount of scientific evidence that’s needed increases with certain claims, such as “carbon neutral.”
The FTC has an entire rulebook dedicated to “eco” claims, separate and apart from the Jewelry Guides. It is called the “Green Guides” and can be accessed on FTC.gov.
The JVC’s Stevens added a point I’ve made in writing about lab-grown diamonds on this blog before: a product cannot be labeled as “green” or “eco-friendly” simply because it is perceived to be “greener” than the same product next to it.
She explained it like this: “One of the recurring issues we see with the environmental claims is the use of relative standards (i.e., Michelle speaks 20 words of Spanish and Tiffany speaks one so Michelle is fluent in Spanish) rather than what the standard actually is under the [FTC’s] Green Guides, which is an absolute (i.e., Michelle is either fluent in Spanish or not, regardless of how competent the person standing next to her is.)”
Before I wrap up this blog, it’s worth noting that the FTC is not a law enforcement body; no one is going to prison for putting out diamond jewelry ads that violate the FTC’s Jewelry Guides.
However, the commission can levy fines, and, what might even be worse for these companies, the commission publicizes when it writes warning letters, which can result in coverage not just from trade press but consumer press as well.
Reuters picked up the story about the FTC’s warning letters, as did Ad Age.
The story even made it onto Page Six of the New York Post, which ran it with the headline, “Leonardo DiCaprio-backed diamond company accused of false advertising,” zeroing in on the Diamond Foundry.
The FTC is not disclosing the names of the seven other companies that received warning letters without a Freedom of Information Act request.
A spokeswoman for the Diamond Foundry said the company is limited as to what it can say at this point, but released the following statement: “We have received an inquiry from the FTC, which we take seriously and will respond to in comprehensive detail. We pride ourselves on being a lab-grown diamond producer, and this point of differentiation is what our success is built on. We have worked collaboratively with the FTC for years, and the FTC has been a great supporter of the industry and a champion of change for consumer transparency.”
The FTC is giving the companies it contacted 10 days to let the commission know how they plan to alter their advertising.
The Diamond Foundry said it will share follow-up information when available.
Stay tuned. I bet this isn’t the last we’ll hear from the FTC regarding the revised Jewelry Guides.
More on Editors
The Latest
Policies & IssuesJan 30, 2025
RJC Executive Director Melanie Grant Is Stepping Down An experienced jewelry writer and curator, Grant led the organization for two years.
CollectionsJan 30, 2025
Pharrell Williams Brings Tahitian Pearls to His New Tiffany & Co. CollectionFive new designs were added, all donning Tahitian cultured pearls and spear-like trident motifs, along with the new “Titan” setting.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
Events & AwardsJan 30, 2025
Registration Open for Converge 2025The inaugural event is being co-hosted by the American Gem Society and the Gemological Institute of America.
Weekly QuizJan 30, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJan 30, 2025
24 Karat Club of New York Elects 5 New MembersJewelers of America’s Annie Doresca and AGTA CEO John W. Ford Sr. are among the new members.
CollectionsJan 29, 2025
Boucheron’s High Jewelry Takes the Form of ‘Untamed Nature’The jeweler’s latest high jewelry collection looks into the Boucheron archives to create a “living encyclopedia of high jewelry.”
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
FinancialsJan 29, 2025
LVMH Watch, Jewelry Sales End the Year DownWatch and jewelry sales slipped 3 percent in 2024, though the luxury conglomerate did see business pick up in the fourth quarter.
MajorsJan 29, 2025
Chanel Names New General Manager of Watches, Fine Jewelry for USOlivier Kessler-Gay will take over the role on March 3.
SurveysJan 29, 2025
Consumer Confidence Slips for Second Consecutive Month It hit a four-month low in January due to concerns about the job market, though consumers remain bullish about the stock market.
Events & AwardsJan 29, 2025
Chris Ploof To Teach Mokume Gane at AJSThe jewelry designer and master metalsmith will present on the ancient Japanese metalworking technique at the Atlanta Jewelry Show in March.
SourcingJan 28, 2025
WFDB Joins Efforts to Promote Natural Diamonds With New CampaignThe “Moments” social media campaign emphasizes the emotional ties between natural diamonds and life’s special milestones.
CollectionsJan 28, 2025
Bliss Lau Celebrates the Intricate Mosaic of Identity in New CollectionThe versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
SourcingJan 28, 2025
Botswana’s First Olympic Gold Medalist Is Now a De Beers Ambassador Letsile Tebogo will help to promote natural diamonds and the good they have done for his country.
Events & AwardsJan 28, 2025
NouvelleBox Show Returns to New York CityThe showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
Recorded WebinarsJan 28, 2025
Watch: Fine Jewelry Market Predictions for 2025 “My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
Events & AwardsJan 28, 2025
Here Is the 2025 AGTA GemFair Tucson Educational LineupThe seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
MajorsJan 27, 2025
Le Vian Corp. Chairman Larry LeVian, a Man of Faith and Family, Dies at 73 LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
CrimeJan 27, 2025
New Jersey Jeweler Sentenced to 2 1/2 Years for Evading CustomsMonishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
SourcingJan 27, 2025
Dev Shetty To Head New Auction House for Rare Colored GemsJemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
CollectionsJan 27, 2025
Rachel Quinn Embodies Feelings of Falling in Love in New CollectionQuinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
MajorsJan 27, 2025
Arch Crown’s 2025 ‘Tag & Label’ Catalog Is Out Now The catalog is 48 pages and features more than 100 styles.
CollectionsJan 24, 2025
Piece of the Week: Ashley Zhang Jewelry’s Lunar New Year NecklaceThe one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
SourcingJan 24, 2025
Ethical Gem Fair Heads Back to Tucson The gemstone show is slated to take place at the Scottish Rite Cathedral.
Policies & IssuesJan 24, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
CrimeJan 23, 2025
4 Men Arrested After Allegedly Plotting to Kidnap JewelerThe suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
