Policies & Issues

From Conclave: FTC Do’s and Don’ts Beyond Lab-Grown Diamonds

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. 

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.

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Jacquie Aiche Lizzie Bracelet
CollectionsNov 05, 2024
Jacquie Aiche is Hosting an Online Treasure Hunt

One lucky winner will receive a “Lizzie” diamond bracelet.

Samantha Larson
IndependentsNov 05, 2024
Long's Jewelers Names New Director of Buying

Samantha Larson has joined the Boston-based retailer.

Emerging Jewelers Accelerator Program logo
Events & AwardsNov 05, 2024
JA, BIJC Now Accepting EJAP Applications for 2025

The Emerging Jewelers Accelerator Program will guide retail jewelry entrepreneurs through an eight-month educational curriculum.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

Tiffany & Co. x CFDA Jewelry Designer Award
Events & AwardsNov 05, 2024
Tiffany & Co., CDFA Announce Design Award Finalists

Ten chosen designers will receive mentorship and participate in a design contest for the Tiffany & Co. x CFDA Jewelry Designer Award.

Weekly QuizOct 31, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Dana J. Lorberg
MajorsNov 04, 2024
Jewelers Mutual Appoints Mastercard Exec to Its Board

Dana J. Lorberg brings 35 years of experience in finance, technology, and strategy to the role.

FBI robbery surveillance photo
CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing Robbers

The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Models wearing Black Sand Pebble ring and Surf bracelet
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into Diamonds

The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.

Jaeger-LeCoultre Reverso Tribute watch
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-Long

The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.

Artist Reena Ahluwalia “Pristine” painting
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJA

The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.

Gunderson’s Jewelers in Omaha, Nebraska
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in Nebraska

The new store features a custom design studio and a bridal salon.

Sydney Evan x Wicked “Spell Book” coin charm
CollectionsNov 01, 2024
Piece of the Week: Sydney Evan Gets ‘Wicked’

Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.

Charles & Colvard moissanite ring
FinancialsOct 31, 2024
Charles & Colvard Faces Possible Nasdaq Delisting

The retailer said it will file the necessary paperwork to regain compliance as soon as it is able.

National Jeweler columnist Peter Smith
ColumnistsOct 31, 2024
Peter Smith: Nervous Flyers and Emotional Selling

Whether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.

Annie E. Doresca, Grant Mobley, Alexis Padis, Terry Chandler
Events & AwardsOct 31, 2024
WJA Will Celebrate 4 Award Winners at ‘Future of Forty’ Gala

The gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”

Instore show 2025
Events & AwardsOct 31, 2024
The Instore Show Returns To Chicago Area

The trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.

Constance Polamalu
Lab-GrownOct 31, 2024
Q&A: Constance Polamalu on Selling Natural and Lab-Grown Diamonds

The jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.

Gem Awards New York City
Events & AwardsOct 30, 2024
These Designers, Journalists, and Retailers Are Up for a Gem Award

The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.

Peggy Grosz
MajorsOct 30, 2024
Peggy Grosz Leaves Assael After Company Is Sold

Grosz had served as Assael’s senior vice president and creative director since 2017.

CD Peacock Love and Celebration Rings
CollectionsOct 30, 2024
CD Peacock Honors Its Hometown of Chicago in First Bridal Collection

“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.

Hands pushing a shopping cart
SurveysOct 30, 2024
Consumer Confidence Rebounds in October

A more positive view of the labor market contributed to the strongest monthly gain since March 2021.

Mejuri store
Events & AwardsOct 30, 2024
Mejuri to Award $50K in Scholarships to Jewelry Design Students

The funds will be distributed to schools in the U.S., Canada, and the U.K.

Jewelers’ Security Alliance President Jennifer Mulvihill
MajorsOct 29, 2024
Cybersecurity Expert Selected as President of Jewelers’ Security Alliance

Jennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.

20241030_NYCJW.jpg
Events & AwardsOct 29, 2024
The Can’t-Miss Events of 2024 New York City Jewelry Week

This year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.

Edgar Mitchell’s Rolex GMT-Master Pepsi
AuctionsOct 29, 2024
Rolex Worn on Apollo 14 Mission Sells for More Than $2M

The GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.

Pandora ambassadors Chloe Bailey, Halle Bailey, and Pamela Anderson
MajorsOct 29, 2024
Pandora’s Holiday Campaign, New Jewelry Celebrate Light and Love

The ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy