In The Loupe:
Advertising Diamonds, Gemstones and Pearls
If you
advertise or sell jewelry, the claims you make about the products must be
accurate. The Federal Trade Commission's (FTC's) Jewelry Guides offer
specific information on how to describe jewelry products truthfully and
non-deceptively and how to disclose material information to consumers. This
brochure highlights the sections of the Jewelry Guides that concern
diamonds, gemstones and pearls. You may need to scrutinize your product
descriptions to make sure they are not misleading and that they disclose
material information to consumers.
Diamond Weight
Decimal Representations
If the diamond's weight is described in decimal parts of a carat, the figure
should be accurate to the last decimal place. For example, ".30 carat" could
represent a diamond that weighs between .295 and .304 carat. If the weight
is given to only one decimal place, it should be accurate to the second
decimal place: If you say a diamond weighs .5 carat, the diamond should
weigh between .495 and .504 carat.
Fractional Representations
If the diamond's weight is described in fractions, the fraction may
represent a range of weights. For example, a diamond described as « carat
could weigh between .47 and .54 carat. If you use the fraction method, you
also should disclose that the diamond weight is not exact and the reasonable
range of weight for each fraction or the weight tolerance used.
Disclosures in Catalogs,
Printed Materials and Online Ads
If you use fractions to represent the weight of a diamond in catalogs or
other printed materials, you should disclose - clearly and conspicuously on
every page that includes a representation - that the diamond weight is not
exact. You can give the range of weights for each fraction or the tolerances
used on a separate page of the catalog or materials. But in that case, you
should state where the consumer can find the information on every page that
includes a fractional representation. For example, your catalog may say
"Diamond weights are not exact. See the chart on page x for weight ranges."
Diamond Testers and Moissanite
Thermal testers used to distinguish diamonds from cubic zirconia may not
accurately identify moissanite - a laboratory-created gemstone that
resembles a diamond. As a result, this stone may falsely register as a
diamond on your thermal detector. How can you ensure that you recognize
moissanite for what it is? A newer tester can do it for you, or you may have
to learn other ways to distinguish moissanite from diamonds.
Gemstone Treatments
Gemstone treatments or enhancements refer to the way some gems are altered
or treated to improve their appearance or durability. Some common treatments
include:
-
Heating, which can lighten,
darken or change the color of some gems, or improve a gemstone's clarity.
-
Irradiation, which can add
more color to colored diamonds, some other gemstones and pearls.
-
Impregnating some gems with
colorless oils, wax or resins, which makes a variety of imperfections less
visible and can improve a gemstones' clarity and appearance.
-
Fracture filling, which
involves injecting colorless plastic or glass in the gems to hide cracks
or fractures and improve the gemstones' appearance and durability.
-
Diffusion treatment, which
adds color to the surface of colorless gems while the center of the stone
remains colorless.
-
Dyeing, which adds color and
improves color uniformity in some gemstones and pearls.
-
Bleaching, which lightens and
whitens some gems, including jade and pearls.
-
Laser-drilling, which removes
dark inclusions from diamonds, improving the clarity of the stone.
The Jewelry Guides state that
sellers should tell consumers about gemstone treatments in certain
circumstances. If the treatment is not permanent or if the treated stone
requires special care, you should tell consumers that the stone has been
treated and give them appropriate instructions to care for the gemstone.
Even if a gemstone treatment is permanent and doesn't create special care
requirements, the Guides require you to tell consumers about the treatment
if it significantly affects the value of the gemstone.
How do you know whether a treatment has a "significant effect" on a stone's
value? Consider whether the treatment makes the product less valuable than
if it contained an untreated stone. Think about value from the consumer's
perspective and ask yourself how your customer would react if he learns
about the treatment after leaving the store, say, when taking the stone to
an appraiser or selling the piece.
The Guides suggest the following disclosures:
-
If the color of a treated
gemstone will fade over time, tell the consumer that the gemstone has been
treated, that the treatment is temporary, and that the stone's color will
fade over time.
-
If ultrasonic cleaners or
solvents should not be used to care for a treated stone, tell the consumer
that the gemstone has been treated and the cleaners or solvents to avoid.
-
If a diamond has been
laser-drilled to improve its clarity - but is then less valuable than a
comparable diamond that has not been treated - tell the consumer the
diamond was laser-drilled.
You
should disclose information about treatments at the point of sale and in any
print advertisement, mail order catalog, televised shopping program and
online advertisement where a consumer can buy the treated gemstone without
viewing the actual item in person.
Pearls
You are required to tell consumers if the pearls you're selling are cultured
or imitation. Your ads should not use the word pearl - by itself - unless
the advertised product consists only of natural pearls. If the product
contains cultured pearls, the word "cultured" or "cultivated" - or a synonym
- should immediately precede the word pearl.
A statement that discloses only the type of cultured pearl you're selling -
for example, freshwater, South Sea or Akoya pearls - does not comply with
the requirement. Instead, say that the pearls are cultured: cultured
freshwater pearls, South Sea cultured pearls or Akoya cultured pearls. If
the product contains imitation pearls, use the word "artificial,"
"imitation," "simulated," or a synonym immediately preceding the word pearl.
Some black, bronze, gold, purple, blue and orange pearls, whether natural or
cultured, occur that way naturally; others are dyed through various
processes. You are required to tell consumers whether colored pearls are
naturally colored, dyed or irradiated.
For More Information
To learn more about making accurate representations of diamonds, gemstones,
pearls, and other jewelry products, including gold, silver and platinum, ask
for a free copy of the FTC's Guides for the Jewelry, Precious Metals and
Pewter Industries. Call the FTC, toll-free, at 1-877-FTC-HELP (382-4357);
TDD: 1-866-653-4261 or read it online at
www.ftc.gov. Click on Business Guidance.
If you have a dispute with a customer about a jewelry representation,
contact the FTC for guidance. You also may contact the Jewelers Vigilance
Committee's (JVC) Alternative Dispute Resolution Service. The JVC is an
independent, non-profit organization formed to advance ethical practices in
the jewelry industry. Contact the JVC by mail: 25 West 45th Street, Suite
400, New York, NY 10036-4902, or by phone: 212-997-2002.
Your Opportunity to Comment
The Small Business and Agriculture Regulatory Enforcement Ombudsman and 10
Regional Fairness Boards collect comments from small business about federal
enforcement actions. Each year, the Ombudsman evaluates enforcement
activities and rates each agency's responsiveness to small business. To
comment on FTC actions, call 1-888-734-3247.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
|
FEDERAL TRADE COMMISSION |
FOR THE CONSUMER |
1-877-FTC-HELP |
www.ftc.gov |
|
December 2001 |