The Federal Trade Commission dictates many disclosure requirements that relate to properly marking and labeling metals, diamonds and gemstones; and including full disclosure of any enhancements and treatments to your jewelry products.
It is Jewelers of America’s position that synthetic diamonds, like all gemstone and jewelry products, must be described accurately at every level of the distribution chain with disclosure of all relevant information in accordance with Federal Trade Commission Guidelines. As a jewelry professional, it’s imperative that you understand the facts to discuss synthetics with your customers.
In recent years, industry labs – and some retailers – have faced media scrutiny, public accusations and lawsuits related to allegations that they sold diamonds with inaccurate grading reports. Jewelers of America has prepared grading report guidance for JA Members to offer some clarity on this hot topic. According to Federal Trade Commission guidelines, if a jeweler makes claims using third-party reports that are inaccurate or deceptive, they themselves could be held liable both by consumers and regulators. Jewelers must be forthcoming with customers and explain that grading reports are a subjective tool to a diamond or gem's properties and not an appraisal or certificate.
Some state consumer protection laws allow your customers to sue if they feel you did not disclose all pertinent product information properly, including jewelry and gemstone treatments. Full disclosure of diamond and gemstone treatments isn’t just a matter of obeying the law; it’s about your ethics and obligations as a jewelry professional. Anything short of full disclosure could compromise the perceived integrity of the individual jeweler and of the entire industry.
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