The Central Consumer Protection Authority (CCPA) has adopted a proactive approach to addressing consumer issues in the diamond sector by holding a stakeholder consultation on November 19th to create consumer protection guidelines.
According to a statement from the Ministry of Consumer Affairs, Food, and Public Distribution, the consultation, chaired by Smt. Nidhi Khare, Chief Commissioner of the CCPA, brought together key industry stakeholders and experts to discuss the pressing issue of standardised terminology for natural and lab-grown diamonds (LGDs), thereby preventing consumer confusion and misinformation. Industry experts emphasized the necessity of ethical marketing methods and standardized terminology for consumer protection.
During the consultation, the broad key topics as well as the current legal and regulatory frameworks were thoroughly discussed. For example, Section 12 of the Legal Metrology Act of 2009 specifies the carat (symbol: c) as the unit of mass for diamonds, pearls, and precious stones, which is equivalent to 200 milligrams or one five-thousandth of a kilogram, ensuring standardised measurements for consistency in commercial transactions across the diamond industry.
The Bureau of Indian Standards (BIS) Standard IS 15766:2007 states that the term “diamond” must only refer to natural diamonds. Synthetic diamonds cannot be labelled as “diamond” without qualification and must be specifically referred to as “synthetic diamonds,” regardless of the manufacturing method or substance utilized. To ensure market clarity, synthetic diamonds cannot be evaluated alongside genuine diamonds.
The Consumer Protection Act of 2019 establishes a strong legislative framework to protect consumer interests by prohibiting unfair trade practices and requiring accurate labeling in the diamond business. This bans any deceptive descriptions or omissions that may confuse customers.
Based on talks, the CCPA proposes the following detailed guidelines:
- Explicit labelling and certification of all diamonds, specifying their origin and production method.
- Prohibition of misleading terms like “natural” or “genuine” for lab-grown products.
- Accreditation systems to regulate and standardise diamond testing laboratories, curbing the rise of unregulated entities.
The Central Consumer Protection Authority will shortly develop a comprehensive framework for ensuring openness, accountability, and consumer protection in the diamond business.