In July 2018, the Federal Trade Commission (FTC) issued updated its Guides for the Jewelry, Precious Metals, and Pewter Industries. The Jewelry Guides give marketers detailed information about how to make non-deceptive claims about their products – including jewelry made with mined, laboratory-created, and simulated diamonds. Since such time the FTC has RECENTLY issued warning letters to eight companies advising them that their advertisements are raising compliance concerns with the recent changes to the jewelers guide.
The industry is not to use the name of any precious stone, including diamonds, to describe a simulated or laboratory-created stone, unless the name is immediately preceded by a clear disclosure of the nature of the product and that it’s not a mined stone.
The industry is also advised not to describe simulated diamonds in a way that may falsely imply they have the same optical, physical, and chemical properties of mined diamonds.
For additional information pertaining to the Guides or about the recently issued warning letter please refer to the below links: