Six years in the making, the Federal Trade Commission (FTC) released updated guidelines for the jewelry industry.
The FTC made changes based on typical consumer knowledge and expectations to prevent deception and confusion when buying jewelry.
The September 2018 MJSA* Journal summarized the changes for the trade, and below is my short recap for the benefit of you Newsletter Members.
*I am a proud member of the Manufacturing Jewelers and Suppliers of America. Organization’s motto is “Professional excellence in jewelry making & design.”
1. Precious Metal Thresholds
The FTC removed thresholds for gold and silver alloys, but guidelines were established for noting karatage of gold alloys under 10k and parts per thousand for silver alloys under 925 ppt.
Platinum thresholds remain unchanged because consumers expect platinum to be pure unless marked.
2. Metal Coatings
Coatings of gold, silver and platinum must be disclosed along with purity content.
For gold plating, the guidelines set 0.175 micron as the standard and require a 10k minimum of fineness.
In addition, rhodium coatings that cover other precious metals must be disclosed (such as rhodium plated silver or rhodium plated white gold).
Up for debate as to what’s required is the new guideline that sellers must be able to assure the reasonable durability of any coating. Coatings may need replating over time or from time to time depending on wear. The expectation of durability no doubt varies widely and gets more complicated given the type of item.
3. Multi-Metal Pieces
When there is more than one metal in a piece, manufacturers and sellers should list each metal in order of relative weight from greatest to least.
However, it is permissible to list in a different order if clarity is provided to avoid deception or misrepresentation. For example, the term “14k gold-accented silver” is acceptable because it is clear that the main metal is silver and gold is merely decorative or a detail.
4. Diamonds/Lab-Grown Diamonds
The unqualified term “diamond” should be used only to refer to a natural mined diamond.
With respect to man made diamonds, the same rules apply as prior guidelines; however, the FTC now discourages (but does not prohibit) use of the word “synthetic” in favor of descriptors like “laboratory-grown,” “laboratory-created,” or “[manufacturer name]-created.”
5. Other Man Made Gems
The updated Guides retain the previous ban on terms “real,” “genuine,” “natural,” “precious,” and “semi-precious” to describe lab-grown and other man made products.
As long as the man made stone shares the same optical, physical, and chemical properties, and further as long as the descriptor makes clear to a consumer that the stone was not mined, then acceptable terms include “synthetic,” “laboratory-grown,” “[manufacturer name]-created,” and other terms of choice.
6. Gemstones
The biggest change prohibits the use of incorrect varietal names to describe a division of gem species or genus based on color, type of optical phenomenon, or other distinguishing characteristic of appearance.
For example, the term “yellow emerald” cannot be used to describe a golden beryl or heliodor. “Green amethyst” cannot be used to describe prasiolite.
Also, composite gemstone products must be clearly identified and special care noted if applies.
Finally, the revised Guides eliminate the prior prohibition against using the word “gem” to describe a ruby, sapphire, emerald, topaz or other stone that did not possess the beauty, symmetry, rarity, and value necessary for qualification as a gem.
7. Pearl Products
Sellers must clearly disclose pearl treatments that are not permanent, create special care requirements, or significantly affect value.
A good example of a pearl treatment that should be disclosed is dyeing. Altering a pearl’s color affects its value, so that treatment should be disclosed at time of sale.
8. Handmade Jewelry
The new guidelines expand the list of acceptable raw products used in pieces described as “handmade” or “hand wrought” to include precious metal clays, ingots, and casting grain. Casting done by hand is considered handmade.
My Takeaway:
Guidelines or no guidelines, jewelry sellers should provide key information so that purchasers know what they are buying and can fairly assess pricing.
The place of sale does not matter. It is especially important to be forthcoming when selling online because the purchaser cannot see the piece in person, touch it, or try it on before making the purchase, even if there is a lenient return policy.
Repeat business is mighty. A jewelry item purchased online should look better in person than it appears on the website. A jewelry item purchased in-store should look as good outside the shop and when the purchaser gets home. Otherwise, in both situations, the purchaser will be disappointed and rightfully so.
My Practice:
I don’t score a perfect 10 with respect to FTC guidelines. My goal is to provide sufficient information to satisfy customers and deal fairly in every transaction.
Click on the above image and you will see that I follow major points of the new guidelines, but still follow some of the old guidelines (e.g., “gem quality”), and also pepper descriptions with subjective language because that is who I am.
Bottom line, hopefully this newsletter contained some info that allows you to better judge true value when important. But life is short … buy jewelry you adore, love, must have, wish to own and want to wear often ~ joy provides the greatest value.