India’s Gem & Jewellery Export Promotion Council (GJEPC) has officially adopted the US Federal Trade Commission (FTC) guidelines for labeling lab-grown diamonds. These rules, implemented by the FTC in 2018, aim to prevent consumer confusion and enhance transparency in the diamond industry.
Clearer Definitions for Consumer Protection
The FTC guidelines require businesses selling lab-grown diamonds to use terms like “cultured,” “laboratory-created,” or “laboratory-grown” alongside the word diamond. Descriptors such as “real,” “authentic,” “genuine,” or using the word “diamond” alone, are exclusively reserved for natural diamonds.
“This initiative is in consumer interest and protects their rights while shielding them from misinformation,” said GJEPC chairman Vipul Shah. The new definitions reflect technological advancements in the diamond sector and are designed to provide clarity in marketing.
Industry-Wide Compliance
The GJEPC is collaborating with India’s Consumer Affairs Ministry to integrate these definitions into national consumer laws. The council is also working with members and broader industry stakeholders to ensure adherence to the updated guidelines.
Smit Patel, convener for GJEPC’s lab-grown diamond panel, emphasized the importance of compliance, noting that noncompliance in international markets like the U.S. could result in lawsuits and civil penalties.
A Unified Approach for Growth
Both natural and lab-grown diamond producers in India are already adhering to these rules. However, the GJEPC stresses the need for marketing strategies to catch up with these advancements.
“The alignment with these rules is not only a step toward global consistency but also critical for the economic significance of lab-grown diamonds,” said Patel. He called on the Indian government to adopt forward-looking policies that reflect the growing importance of lab-grown diamonds in the industry.