GJEPC Says Indian Trade Will Use FTC-Approved Terminology for Lab-Grown Diamonds

The FTC’s Jewelry Guides require “clear and conspicuous” disclosure when advertising lab-grown diamonds.

Michelle Graff michelle.graff@nationaljeweler.com

India’s GJEPC said it is adopting the U.S. Federal Trade Commission’s guidelines for marketing and advertising diamonds, as included in the Jewelry Guides.

Mumbai, India—The Gem & Jewellery Export Promotion Council (GJEPC), India’s main jewelry industry trade organization, announced recently that it is adopting the U.S. Federal Trade Commission’s guidelines for marketing and advertising diamonds.

Part of the revised Jewelry Guides released in 2018, the FTC’s guidelines dictate that when advertising lab-grown diamonds, companies must disclose what they are in a “clear and conspicuous” manner; in other words, the disclosure has to be somewhere consumers are going to see it.

The three terms the FTC recommends using for lab-grown diamonds are: laboratory-grown, laboratory-created, or [manufacturer name]-created.

Cultured can be used too, the FTC said, but it has to be “immediately accompanied, with equal conspicuousness” by one of the three aforementioned terms.

Terms such as “real,” “genuine,” “natural,” and “precious” cannot be used in advertising a lab-grown diamond, according to the Jewelry Guides, and when the word “diamond” appears by itself, it is taken to mean the product being advertised is a natural diamond.

GJEPC said the FTC’s updated guidelines, “provide a clear, standardized definition of ‘diamond’ and distinct terminology for laboratory-grown diamonds, ensuring clarity and transparency for both industry stakeholders and consumers.”

The organization said it will begin educating the Indian trade on the correct terms and their usage, and it will encourage other jewelry trade organizations and Indian retailers to adopt the FTC-approved terminology as well.

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On the consumer side, GJEPC said it has been working with the Indian government and the Ministry of Consumer Affairs, Food, and Public Distribution to get the guidelines for advertising diamonds established by the FTC written into the country’s consumer laws.

Currently, consumer understanding in India is that when the word “diamond” appears alone, it implies that the product the consumer is buying is a natural diamond, but India’s existing Consumer Protection Act does not specifically state this.

The GJEPC believes it should.

“Since India’s gem and jewelry trade has unanimously accepted the FTC’s new definition with respect to diamonds, we urge the Indian government and ministries to accept, adopt, and adapt the same to existing consumer laws of our country,” GJEPC Chairman Vipul Shah said.

“This initiative is in consumers’ interest and protects their rights while shielding them from misinformation. The FTC’s new definition reflects technological advancements and ensures clarity in diamond marketing, applying the same standards to both mined and lab-grown diamonds.”

Smit Patel, who heads the GJEPC’s Lab-Grown Diamond Panel, added that since is India is a leader in the lab-grown diamond sector, it should be using the same terminology for lab-grown diamonds that is being applied everywhere else.

“Globally, these diamonds are recognized as ‘laboratory-created’ or ‘laboratory-grown,’ not ‘synthetic diamonds,’ and India should embrace this terminology,” Patel said.

“The lab-grown diamond industry has also contributed to the creation of millions of jobs domestically and is driving substantial exports, reinforcing India’s position as a global leader in this rapidly growing sector.”

Following its meetings with the government, GJEPC said the country’s Central Consumer Protection Authority (CCPA), which works to protect consumers from unfair practices, much like the FTC in the United States, organized a stakeholder consultation on consumer protection for the diamond sector.

The CCPA also has created a working group to review diamond terminology.