SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Policies & IssuesApr 15, 2019
From Conclave: FTC Do’s and Don’ts Beyond Lab-Grown Diamonds
From pearl treatments to composite gemstones, Tiffany Stevens and Sara Yood of the Jewelers Vigilance Committee shared tips on how to comply with the revised Jewelry Guides.
New York—When the Federal Trade Commission debuted the revised Jewelry Guides in July, the new regulations around lab-grown diamonds were the talk of the industry.
The recent warning letters sent to eight companies regarding their advertisements for lab-grown diamond jewelry and diamond simulants have reignited the discussion, but there are other changes to the guides that warrant attention.
Jewelers Vigilance Committee CEO Tiffany Stevens and Senior Counsel Sara Yood held a session Wednesday at AGS Conclave in Seattle to break down all the changes to the Jewelry Guides.
“We just want to make sure everyone knows what their responsibilities are,” Stevens said.
She noted that while the guidelines are not technically laws, not adhering to them could lead to lawsuits from the FTC or competitors, or even class-action lawsuits from consumers.
Here a few tips and tricks to keep jewelers in compliance.
Be Upfront With Plating
Under the new guidelines, jewelers are required to disclose if a piece of jewelry has been plated with rhodium, platinum or silver. When using rhodium plating, the seller has to assure the durability of the coating.
Yood recommended applying the “reasonable person standard”—meaning the plating will last as long as your average customer would expect—and always disclosing plating to the customer in writing.
Be Mindful of Metal Minimums
There is no longer a 10-karat minimum threshold for gold, meaning 8-karat or below can be labeled gold in the United States.
However, the fineness needs to be disclosed for anything under 24-karat gold.
While there is no minimum threshold for silver, the fineness must be disclosed and a piece must be at least .925 ppt silver to be called “sterling” silver.
If a piece contains more than one precious metal, the predominant metal should be listed first in the description or described in a way that makes it clear.
For example, if a necklace is mostly silver with 14-karat gold accents, the JVC’s presentation suggested describing it as “sterling +14K” or “14-karat gold accented sterling silver.”
Disclose All Pearl Treatments
While not mentioned in previous editions, there is a section in the revised Jewelry Guides about pearl treatments.
A pearl treatment has to be disclosed if the treatment is not permanent, requires special care or significantly affects the value of the pearl, such as dyeing.
The guidelines also recommend explaining any special care requirements a customer would need to know.
Be Clear About Composite Gemstone Products
Disclosure is important when describing products made with gemstone material and filler, such as glass or a polymer.
The recent warning letters sent to eight companies regarding their advertisements for lab-grown diamond jewelry and diamond simulants have reignited the discussion, but there are other changes to the guides that warrant attention.
Jewelers Vigilance Committee CEO Tiffany Stevens and Senior Counsel Sara Yood held a session Wednesday at AGS Conclave in Seattle to break down all the changes to the Jewelry Guides.
“We just want to make sure everyone knows what their responsibilities are,” Stevens said.
She noted that while the guidelines are not technically laws, not adhering to them could lead to lawsuits from the FTC or competitors, or even class-action lawsuits from consumers.
Here a few tips and tricks to keep jewelers in compliance.
Be Upfront With Plating
Under the new guidelines, jewelers are required to disclose if a piece of jewelry has been plated with rhodium, platinum or silver. When using rhodium plating, the seller has to assure the durability of the coating.
Yood recommended applying the “reasonable person standard”—meaning the plating will last as long as your average customer would expect—and always disclosing plating to the customer in writing.
Be Mindful of Metal Minimums
There is no longer a 10-karat minimum threshold for gold, meaning 8-karat or below can be labeled gold in the United States.
However, the fineness needs to be disclosed for anything under 24-karat gold.
While there is no minimum threshold for silver, the fineness must be disclosed and a piece must be at least .925 ppt silver to be called “sterling” silver.
If a piece contains more than one precious metal, the predominant metal should be listed first in the description or described in a way that makes it clear.
For example, if a necklace is mostly silver with 14-karat gold accents, the JVC’s presentation suggested describing it as “sterling +14K” or “14-karat gold accented sterling silver.”
Disclose All Pearl Treatments
While not mentioned in previous editions, there is a section in the revised Jewelry Guides about pearl treatments.
A pearl treatment has to be disclosed if the treatment is not permanent, requires special care or significantly affects the value of the pearl, such as dyeing.
The guidelines also recommend explaining any special care requirements a customer would need to know.
Be Clear About Composite Gemstone Products
Disclosure is important when describing products made with gemstone material and filler, such as glass or a polymer.
Stay away from calling these products “lab-created” or “lab-grown,” or referring to them as “treated” gemstones.
Instead, call it a composite gemstone, hybrid gemstone or a manufactured gemstone.
For example, a seller could describe a lead-glass filled ruby as “composite ruby, lead-glass filled, special care required.”
Also, be careful not to get too creative with varietal naming, the JVC warned in its presentation. It would be considered deceptive to describe golden beryl as a “yellow emerald” or prasiolite as “green amethyst.”
Handmade Products Must Be Made Entirely By Hand
While this might seem obvious, the guides are specific about what it means to say a product is “handmade.”
If a jewelry designer uses CAD software to create a piece, then that’s not considered handmade.
In order to say a product is handmade, the “entire shaping and forming of such product from raw materials and its finishing and decoration were accomplished by hand labor,” the FTC Jewelry Guides state.
If a seller wants to tout something special about a piece that was partially handmade, boast about the specific part of the process that was done manually, such as hand-set or hand-engraved, advised Yood.
A Hashtag Is Not Disclosure
Social media is an indispensable advertising tool for most companies, but sellers need to be mindful of their descriptions on platforms like Facebook and Instagram.
It might be helpful to look back on old social media posts as well to be sure they’re all up to standard, Yood said.
Definitely share that gorgeous ring photo, she said, but understand that “#LabGrownDiamond” is not sufficient disclosure. Give as much detail about the piece as possible.
Eco-Friendly Claims Must Be Backed Up
The recent FTC warning letters mentioned that companies can’t play fast and loose with calling themselves “eco-friendly.” It’s not a throwaway term and needs to be backed up with data, advised JVC.
The FTC has an entirely separate set of guidelines for environmental claims, the “Green Guides.” They apply to all advertising, and the jewelry industry is no exception.
Jewelers with additional questions or concerns about the revised guidelines can visit the JVC’s website for more information about compliance.
More on Policies & Issues
The Latest
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
Weekly QuizApr 11, 2024
This Week’s QuizTest your jewelry news knowledge with this seven-question quiz.
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
FinancialsApr 17, 2024
LVMH’s Q1 Jewelry Sales Fall 5%LVMH said the company performed well despite an uncertain geopolitical and economic environment.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
MajorsApr 17, 2024
Stuller’s B&D Opens New HeadquartersB&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Loudr Adds 2 DirectorsEmily Highet Morgan and Emily Bennett have joined the agency’s team.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95He is remembered by loved ones for his loyalty, integrity, and kindness.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone CharmThe charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship WinnersAhead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFairMembers can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
IndependentsApr 11, 2024
Steven Rosdal, Co-Founder of Hyde Park Jewelers, Dies at 77He is remembered for his charisma, passion, integrity, kindness, and wit.
MajorsApr 11, 2024
Macy’s Opens Books for Possible BuyoutThe retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
CollectionsApr 10, 2024
Sylvie Launches New Nature-Inspired Collection, ‘Tulira’The bridal collection consists of 35 engagement rings and seven wedding bands.
WatchesApr 10, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
IndependentsApr 10, 2024
Levy's Fine Jewelry Explores Diamond History The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.
