The new required definition, nomenclature, and rules for diamonds established by the Federal Trade Commission (FTC) of the United States (US) have been adopted by the Gem & Jewellery Export Promotion Council (GJEPC), the highest authority for the gem and jewelry industry in India. The FTC’s revised rules ensure clarity and transparency for consumers and industry stakeholders alike by offering a standardized definition of “diamond” and unique nomenclature for lab-grown diamonds.
Members of GJEPC will make sure that the new definition of “diamond” is followed, and they will ask other gem and jewelry trade associations and merchants to follow suit. In order to bring this new definition into compliance with the nation’s consumer regulations, GJEPC is also spearheading the government consultation and has submitted a proposal to the Consumer Affairs Ministry. This alignment will remove uncertainty, enable customers to make knowledgeable judgments, and avoid any false connotation about the genuineness of diamonds. The Central Consumer Protection Authority (CCPA) has proactively arranged a stakeholder consultation on consumer protection for the diamond industry in response to GJEPC‘s representation to the government. In an effort to safeguard and advance the natural and LGD industries, CCPA has also established a working group to examine diamond nomenclature and frame the Indian Standard along similar lines.
“Since the gem and jewelry industry in India has unanimously embraced the FTC’s new definition of diamonds, we implore the Indian Government and Ministries to embrace, adopt, and modify it in accordance with our nation’s current consumer laws,” stated Mr. Vipul Shah, Chairman of the GJEPC. This program serves the interests of consumers by defending their rights and preventing false information from reaching them. By using the same criteria for both mined and lab-grown diamonds, the FTC’s new definition guarantees clarity in diamond marketing and takes into account technological improvements.
In order to guarantee fairness and compliance, GJEPC will start the process of training the Indian trade. In order to boost consumer confidence, this will guarantee that all significant players in the trade value chain have the authority and responsibility to direct, counsel, and advise customers and consumer organizations. This would give international buyers and export destinations more confidence and usher in a new era in India’s magnificent gem and jewelry exports to the world,” Mr. Shah continued.
Since consumers now believe that a “diamond” without a prefix suggests natural, but the current Consumer Protection Act law does not expressly specify this, GJEPC is spearheading the consultation with the government. In order to provide protection against flaws, shortcomings, and unfair business practices, GJEPC has encouraged the government to harmonize the new definition with the current Consumer Protection Act.
Lab-grown diamonds are not characterized by terms like real, genuine, natural, or precious (LGD). When referring to lab-grown diamonds, the word “cultured” must be immediately followed by phrases like “laboratory-grown” or “laboratory-created.” Marketers can refer to lab-grown diamonds using transparent, laboratory-grown, and laboratory-created terminology. Despite this, sellers are still required to abide by the law and must make sure they don’t make false representations. Like its international rivals, Indian LGD commerce has also embraced the new definition and will adhere to it.
“We have urged the Government to adopt a forward-looking policy framework in order to align with the advancements and economic significance of lab-grown diamonds,” stated Smit Patel, Convener, Lab-grown Diamond Panel, GJEPC. Internationally, these diamonds are known as “laboratory-grown” or “laboratory-created,” not “synthetic diamonds,” and India need to adopt this nomenclature. In addition to creating millions of employment domestically, the lab-grown diamond business is generating significant exports, solidifying India’s standing as a world leader in this quickly expanding field.
The FTC’s “Jewelry Guides” regulations for the marketing and promotion of jewelry and stones guarantee clarity and forbid the use of deceptive terminology in the sector. Regarding enforcement: In the United States, noncompliance can result in civil penalties and litigation. First released in 2016, they underwent additional revisions in 2018. Additionally, they are widely used in India’s major international export markets.