For Release:
December 1, 2000 FTC Amends Its Guides for the Jewelry Industry;
Changes Address Disclosures for Permanent Gemstone Treatments Such as Laser Drilling
The Federal Trade Commission today announced that it is amending its Guides for the
Jewelry, Precious Metals and Pewter Industries, commonly known as the Jewelry Guides, to
require disclosure of permanent treatments to gemstones that significantly affect the
value of the gemstone, which would include laser drilling of diamonds. Disclosing these
types of gemstone treatments will ensure that consumers obtain accurate information about
jewelry products and that sellers avoid unfair or deceptive practices. Failure to provide
disclosures could be a violation of Section 5 of the FTC Act.
The amendments announced today revise Sections 23.13 and 23.22 of the Guides based on
comments received following proposed revisions outlined last summer. These sections of the
Guides address the treatment of diamonds and other gemstone products. Previously, the
Guides addressed only the disclosure of gemstone treatments that are not permanent or that
create special care requirements for the gemstone. The revised Guides advise that sellers
disclose other treatments that, while permanent and not creating special care
requirements, significantly affect the value of a gemstone.
In addition, Sections 23.13 and 23.22 of the Guides have been combined. Section 23.13,
in the diamonds section of the Guides, now directs readers to Section 23.22, which
addresses treatments to all gemstones. Section 23.22 contains new text that states that
three types of gemstone treatments should be disclosed: 1) treatments that are not
permanent; 2) treatments that create special care requirements for the gemstone; and 3)
treatments that significantly affect the value of a gemstone.
The Jewelry Guides are among the oldest of the Commissions business guides and
are relied on extensively within the industry. They were most recently revised in 1996 to
make them compatible with international standards and to address several gemstone
treatment advances.
The Commission vote to approve publication of the Federal Register notice was 5-0. It
will be published shortly and also will be available from the FTCs Web site at www.ftc.gov. The amended Guides will become
effective on April 10, 2001. |