Post Buying Request

Diamond Sellers Fight 'Cultured' and Other Labels for Synthetic Stones

Sellers of synthetic diamonds must label them as "lab-grown" or "lab-created." But marketers of these gems have launched a campaign to allow them to describe their merchandise as "cultured" diamonds..

From: philly.comDate: 2016-05-24 06:55:21Views: 574

The jewelry industry is in the midst of a dispute about how diamonds that look like the real deal but aren't exactly can be advertised.

As it stands, sellers of synthetic diamonds must label them as "lab-grown" or "lab-created." But marketers of these gems have launched a campaign to allow them to describe their merchandise as "cultured" diamonds, a move that sellers of natural jewelry and gemstones vehemently oppose.

"The phrase 'cultured' usually refers to pearls, not diamonds," said Cecilia Gardner, CEO of the Jeweler Vigilance Committee in New York. "The JVC has taken the position that the word 'cultured' should only be used to describe pearls and nothing else."

The issue has come to the forefront because of a June 3 Federal Trade Commission deadline for submitting public comments on proposed amendments to its official jewelry guides. The guides are a set of rules to help businesses steer clear of making deceptive claims about precious metal, pewter, diamonds, gemstones, and pearl products, including what types of disclosures are needed.

John Henne, owner of Henne Jewelers in Pittsburgh, said the guides play an important role in policing the industry. The industry organization he belongs to, Jewelers of America in New York, also will be submitting some pearls of wisdom for the new edition.

"You want to make sure it's a level playing field, so that when jewelry sellers are describing their items they use similar terminology," Henne said. "This avoids confusion for the consumer. There are ways people can talk around things and lead someone to believe something is better than it is."

The jewelry guides address virtually all aspects of the industry. For instance, if a jewelry retailer's ad shows a diamond or gemstone greater than its actual size, there must be a disclosure about the actual size.

Retailers cannot use terms such as "faux pearl," "fashion pearl" or "Mother of Pearl" to describe or qualify an imitation pearl unless it is immediately preceded with equal conspicuousness by the word "artificial," "imitation" or "simulated."

Reenah Kim, a lawyer with the FTC in Washington, said the commission has addressed jewelry industry trade practices for nearly 100 years. The first jewelry guides originated in 1918 after a trade practice conference. The guides were reissued in 1979.

Typically, Kim said, the FTC seeks to conduct a full review every 10 years. The most recent came in 1996.

"They are not independently enforceable as rules," Kim said, "but a failure to follow the guidance could result in enforcement action under the FTC act, which prohibits unfair or deceptive practices, if the commission finds the act or practice is unfair or deceptive."

Henne said synthetic diamonds have the exact chemical composition of natural diamonds but are made in a laboratory. They are typically sold online, but some jewelers are building their business models on synthetic diamonds. One company, Wedding Day Diamonds, has eight store locations in Minnesota.

Henne Jewelers neither sells nor stocks synthetic, but a customer or two has inquired about them over the years.

"We brought in some synthetic diamonds for their inspection, but so far we have not sold any," Henne said. "They have always chosen natural diamonds when we've shown them the difference."

When synthetic diamonds came onto the scene about two years ago, he said, they were selling at only a slight discount of 20 percent to 30 percent to natural diamonds.

"Now, we see them in the neighborhood of 40 percent to 50 percent less than natural diamonds," Henne said. "The one thing I would want consumers to really know is a natural diamond has resale value on the secondary market. I'm not aware of any secondary market for synthetic diamonds."

Lou Guarino, owner of Louis Anthony Jewelers in suburban Pittsburgh, said consumers need to be aware of exactly what they are buying.

Guarino suggests that consumers look for stores credentialed by institutions such as the American Gem Society.

"I recommend shopping locally and developing a relationship with a store or individual who has the background and qualifications to be known for selling accurate jewelry and gemstones," he said.

 

share:

Top News

Sponsored links