SourcingApr 10, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond Advertising
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
The U.K.’s Advertising Standards Authority upheld the Natural Diamond Council’s complaint against U.K.-based retailer Skydiamond. The NDC alleged that Skydiamond’s marketing claims, such as referring to its lab-grown diamonds as “diamonds made entirely from the sky,” were misleading to consumers, and the ASA agreed.
Editor’s Note: This story was updated post-publication to include comment from Skydiamond.
London—The U.K.’s Advertising Standards Authority (ASA) announced it has upheld the Natural Diamond Council’s complaint against retailer Skydiamond for misleading marketing and advertisement of lab-grown diamonds.
The online fine jewelry retailer uses a patented process to create diamonds from atmospheric carbon dioxide and rainwater using renewable energy from solar and wind power, its website states.
The NDC’s complaint alleged that it was misleading for Skydiamond to use the terms “Skydiamonds,” “diamonds,” and “diamonds made entirely from the sky” in ads it featured in early 2023 in press, on its Instagram, and on its website.
It also called into question the use of the words “real diamond” in a section of the retailer’s FAQ page that answered the question “Are Skydiamonds real diamonds?” with “Each Skydiamond is a perfectly formed real diamond.”
In its ruling, the ASA, which is the U.K. equivalent of the Federal Trade Commission (FTC), sided with NDC, stating that the ads did not make it clear that the diamonds were lab grown.
It also said the above terms were misleading, and the ads breached the U.K. Code of Non-Broadcast Advertising, Sales Promotion and Direct Marketing rules 3.1 and 3.3, with regards to misleading advertising, and 3.9, with regards to qualification.
The code states, “marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous, or untimely manner.”
All of Skydiamond’s ads included clear gemstones and references to diamonds, the ruling said, and it considered consumers would understand “diamond” in insolation to mean a naturally occurring mineral of crystallized carbon.
While some consumers would be aware that diamonds could be manufactured in a lab, ASA said, many would not.
ASA directed Skydiamond not to use the above terms to describe their lab-grown diamonds without a clear and prominent qualifier, such as “synthetic,” “laboratory-grown” or “laboratory-created,” or another way of conveying the same meaning to consumers in a direct and obvious manner.
It also told the retailer the ads must not appear again in the form complained about, and to not use the claim “real diamonds” to describe lab-grown diamonds.
Skydiamond said it plans to appeal the ruling, calling it “a mistake.”
“Our website and all of our marketing, indeed our very name, make clear that our diamonds come from the sky, we make them or mine them from the sky," said Dale Vince, founder of Skydiamond.
"We make that very clear. Nobody could possibly think they are conventional stones ripped from the bowels of the earth at enormous environmental cost, and nobody actually has. This complaint is not based on actual confusion on the part of customer; it comes from the trade body for diamond mining companies, [and] it is an attempt to use the ASA for anti-competitive purposes and it utterly baseless."
Related stories will be right here …
London—The U.K.’s Advertising Standards Authority (ASA) announced it has upheld the Natural Diamond Council’s complaint against retailer Skydiamond for misleading marketing and advertisement of lab-grown diamonds.
The online fine jewelry retailer uses a patented process to create diamonds from atmospheric carbon dioxide and rainwater using renewable energy from solar and wind power, its website states.
The NDC’s complaint alleged that it was misleading for Skydiamond to use the terms “Skydiamonds,” “diamonds,” and “diamonds made entirely from the sky” in ads it featured in early 2023 in press, on its Instagram, and on its website.
It also called into question the use of the words “real diamond” in a section of the retailer’s FAQ page that answered the question “Are Skydiamonds real diamonds?” with “Each Skydiamond is a perfectly formed real diamond.”
In its ruling, the ASA, which is the U.K. equivalent of the Federal Trade Commission (FTC), sided with NDC, stating that the ads did not make it clear that the diamonds were lab grown.
It also said the above terms were misleading, and the ads breached the U.K. Code of Non-Broadcast Advertising, Sales Promotion and Direct Marketing rules 3.1 and 3.3, with regards to misleading advertising, and 3.9, with regards to qualification.
The code states, “marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous, or untimely manner.”
All of Skydiamond’s ads included clear gemstones and references to diamonds, the ruling said, and it considered consumers would understand “diamond” in insolation to mean a naturally occurring mineral of crystallized carbon.
While some consumers would be aware that diamonds could be manufactured in a lab, ASA said, many would not.
ASA directed Skydiamond not to use the above terms to describe their lab-grown diamonds without a clear and prominent qualifier, such as “synthetic,” “laboratory-grown” or “laboratory-created,” or another way of conveying the same meaning to consumers in a direct and obvious manner.
It also told the retailer the ads must not appear again in the form complained about, and to not use the claim “real diamonds” to describe lab-grown diamonds.
Skydiamond said it plans to appeal the ruling, calling it “a mistake.”
“Our website and all of our marketing, indeed our very name, make clear that our diamonds come from the sky, we make them or mine them from the sky," said Dale Vince, founder of Skydiamond.
"We make that very clear. Nobody could possibly think they are conventional stones ripped from the bowels of the earth at enormous environmental cost, and nobody actually has. This complaint is not based on actual confusion on the part of customer; it comes from the trade body for diamond mining companies, [and] it is an attempt to use the ASA for anti-competitive purposes and it utterly baseless."
The NDC, which filed in March 2023, based its complaint on the Diamond Terminology Guideline, a reference document that, as of 2020, is assured and recognized by Trading Standards in the U.K. market.
The U.K.’s National Association of Jewellers, along with leading industry organizations, have endorsed the guideline, which is built on the ISO 18323 Standard (“Jewellery – Consumer confidence in the diamond industry”) and the CIBJO Diamond Blue Book.
The FTC has its own rules on diamond terminology, but it is not recognized for diamonds sold outside the United States.
The Diamond Terminology Guideline states that all documents, websites, and other means of communication intended to sell, buy, and promote natural diamonds, lab-grown diamonds, gemstones, lab reports, and natural and lab-grown diamond jewelry must use “synthetic,” “laboratory-grown” or “laboratory-created” when referring to lab-grown diamonds, a directive the ASA references in its ruling.
In one section of its lengthy response to NDC’s complaint, Skydiamond called the guideline a tool that “should not be, and did not profess to be, the only basis for defining the origin of a diamond or for determining definitively whether diamond ads were misleading to an average consumer.”
Skydiamond also argued that of the 23 steps in its “novel and innovative” production process, only the CVD step was shared with conventional lab-grown diamond production processes, and commercialization of its process post-dated the introduction of the Diamond Terminology Guideline, so it was not considered for inclusion.
The ASA acknowledged in its ruling that the guideline had been updated in 2023, but there were no major changes to the 2020 version.
And, although it agrees Skydiamond’s production process differs from other diamond growers, ASA said the diamonds were lab grown nonetheless and consumers needed to know that before making a transactional decision.
The NDC’s complaint to the ASA regarding misleading terminology in advertisements for lab-grown diamonds initially included three other U.K. retailers—Stephen Webster, Lark & Berry, and Idyl.
According to NDC, ASA dropped its case against Stephen Webster but did note that its ruling in the Skydiamond case also applies to Stephen Webster’s marketing and communications.
A spokesperson for Stephen Webster said the company had no comment on the ruling.
The ASA investigated ads from the other two retailers and considered them to be in breach of code—Lark & Berry for the use of “cultured diamond” and “diamond” without a qualifier when referring to synthetic diamonds, and Idyl for the use of the terms “diamonds,” “diamond sparkle,” “fine diamond jewelry,” “sustainable diamonds,” and “Diamonds of the Future” in the same context.
Lark & Berry agreed to amend the ads with qualifiers such as “synthetic,” “laboratory-grown,” and “laboratory-created.”
Idyl also agreed to amend their advertisements that targeted U.K. consumers.
Both rulings have been published as informally resolved on ASA’s website.
More on Policies & Issues
The Latest
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
Weekly QuizDec 12, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
MajorsDec 12, 2024
Mark Henry Appoints New Director of SalesCarrie Forman joins the brand to guide it into the next phase of growth with major and independent retailers in the U.S. and abroad.
Brought to you by
Protecting Your Sparkle: Why Screening Has Become Essential While no reputable jeweler would knowingly sell lab-grown stones as natural, it's a growing possibility.
SourcingDec 12, 2024
De Beers Announces 2024 ‘Shining Light’ Award WinnersThe competition awarded 12 designers, each from a country where De Beers recovers diamonds, with business support and tuition assistance.
CollectionsDec 12, 2024
The Jared Atelier x Vera Wang Collection Emphasizes EleganceThe high jewelry collection features 14 one-of-a-kind pieces, with serpent and ribbon motifs winding their way through the collection.
CrimeDec 11, 2024
Former Tiffany & Co. Factory Supervisor Sentenced for Stealing Precious Metals A federal judge gave Benjamin Preacher 59 days in jail, plus 10 months of home confinement and two years of supervised release.
GradingDec 11, 2024
IGI Set to Go Public Next WeekIn a CNBC interview, CEO Tehmasp Printer discussed the IPO in India and what declining lab-grown diamond prices mean for the company.
AuctionsDec 11, 2024
Sotheby’s Important Watches Sale Fetches $16.6MThe offering included vintage Rolexes, timepieces worn in “Titanic,” Steve McQueen's watch, and a special Citizen pocket watch.
CollectionsDec 11, 2024
Stephanie Gottlieb Brings Natural Diamonds to StudsThe 13-piece “Stephanie Gottlieb x Studs” collection is the piercing studio’s first fine jewelry offering to feature the gemstone.
IndependentsDec 10, 2024
Sauer Opens First U.S. StoreThe Brazilian jewelry brand made a home on New York City’s Madison Avenue with exclusive pieces only available at the location.
SurveysDec 10, 2024
Jewelry Among Top Sellers on Cyber Monday, Says AdobeAn Adobe Analytics report explored the rise in mobile shopping, the popularity of Buy Now Pay Later options, and peak shopping hours.
Events & AwardsDec 10, 2024
AGTA Launches Scholarship for University of Arizona Geosciences StudentsThe inaugural Dick Greenwood Memorial Scholarship in Gems Science will cover the fall 2025 and spring 2026 semesters.
Events & AwardsDec 10, 2024
JA New York To Debut 2 New Pavilions at Spring 2025 ShowA Piazza Italia pavilion will feature Italian designers and manufacturers while “MJSA Showcase” brings over a piece of the MJSA Expo.
CollectionsDec 09, 2024
Ray Griffiths’ First Coffee Table Book Spans 5 Decades of Design“Ray Griffiths: The Works” tells the story of the master jeweler’s career, which started with an apprenticeship in Australia at age 15.
MajorsDec 09, 2024
Thomas Davis, Grant Mobley Join WJA Foundation Board Davis is the director of business development at Select Jewelry Inc., and Mobley is the jewelry and watch editor at the Natural Diamond Council.
FinancialsDec 09, 2024
Movado’s Q3 Sales Down 3% Amid ‘Challenging’ EnvironmentThe retailer has been upping its marketing spend to drive revenue growth and brand awareness.
IndependentsDec 06, 2024
After 44 Years in Business, This Wisconsin Independent Is ClosingMike Straub and John Treiber opened Treiber & Straub in 1980 with the goal of bringing Milwaukeeans the best jewelry brands.
TrendsDec 06, 2024
Pantone’s Color of the Year Is a Delicious MousseThe color for 2025, “Mocha Mousse,” embodies thoughtful indulgences and everyday pleasures.
CollectionsDec 06, 2024
Piece of the Week: Cocoerow Fine Jewelry’s ‘Kokoro’ PendantThe Yoruba word for ant, “Kokoro” embodies the strength of womanhood in ant society while highlighting responsible sourcing.
FinancialsDec 06, 2024
Roberto Coin Acquisition Gives Watches of Switzerland a Boost in H1The retailer’s jewelry sales doubled, with branded jewelry performing especially well.
FinancialsDec 05, 2024
Signet Jewelers’ Q3 Sales Slide Amid Slow Engagement Ring Sales, Tech IssuesThe jewelry retailer addressed the lab-grown diamond “disruption,” the price of gold, and its holiday weekend performance.
SurveysDec 05, 2024
Consumer Confidence Rises Again in NovemberA more positive view of the current labor market boosted the Conference Board’s index last month.
