According to GJEPC, Indian trade will use FTC-approved terminology for lab-grown diamonds

As part of revised jewelry guides released in 2018, the FTC’s guidelines require that when advertising lab-grown diamonds, companies must “clearly and conspicuously” disclose what they are; In other words, the disclosure must be made in a place where consumers can see it.

The three terms the FTC recommends for lab-grown diamonds are: lab-grown, lab-created, or (manufacturer’s name).

According to the FTC, “Cultured” can also be used, but it must be accompanied “immediately and with equal conspicuousness” by one of the three terms listed above.

According to the Jewelry Guides, terms such as “genuine,” “genuine,” “natural,” and “precious” are not allowed to be used in advertising lab-grown diamonds, and when the word “diamond” appears alone, it means that the product advertised is a natural diamond.

GJEPC said the FTC’s updated guidelines “provide a clear, standardized definition of ‘diamond’ and unambiguous terminology for lab-grown diamonds, ensuring clarity and transparency for both industry players and consumers.”

The organization said it will begin educating the Indian trade on the correct terms and their usage and will encourage other jewelry trade organizations and Indian retailers to also adopt the FTC-approved terminology.

Currently, consumers in India assume that the mere appearance of the word “diamond” means that the product the consumer is purchasing is a natural diamond. However, the existing consumer protection law of India does not specifically provide for this.

The GJEPC believes this should be the case.

“As India’s gem and jewelry trade has unanimously accepted the FTC’s new definition regarding diamonds, we urge the Indian government and ministries to accept, adopt and align it with our country’s existing consumer laws,” GJEPC said- Chairman Vipul Shah.

“This initiative is in the interest of consumers, protecting their rights while protecting them from misinformation. The FTC’s new definition reflects technological advances and provides clarity in diamond marketing by applying the same standards to both mined and lab-grown diamonds.”

Smit Patel, who heads the GJEPC panel on lab-grown diamonds, added that since India is a leader in lab-grown diamonds, it should use the same terminology for lab-grown diamonds that is used everywhere else.

“Globally, these diamonds are considered ‘lab-created’ or ‘lab-grown’ and not ‘synthetic diamonds’ and India should adopt this terminology,” Patel said.

“The lab-grown diamond industry has also contributed to the creation of millions of jobs domestically and drives significant exports, strengthening India’s position as a global leader in this fast-growing sector.”

Following its meetings with the government, GJEPC said that the country’s Central Consumer Protection Authority (CCPA), which works to protect consumers from unfair practices similar to the FTC in the United States, is conducting a stakeholder consultation on consumer protection organized the diamond sector.

The CCPA has also established a working group to review diamond terminology.