FTC Jewelry Guides Recognize Both “Laboratory-Created” and “Laboratory-Grown” 

FOR IMMEDIATE RELEASE

The United States Gemological Institute (USGI) is reminding members of the jewelry and gemstone industry that the Federal Trade Commission’s Guides for the Jewelry, Precious Metals, and Pewter Industries expressly recognize both “laboratory-created” and “laboratory-grown” as terminology that may be used in describing qualifying man-made diamonds and colored gemstones.

The FTC Jewelry Guides are contained in Title 16, Code of Federal Regulations, Part 23 (16 CFR Part 23) and provide federal guidance regarding representations made in the advertising, identification, grading, and sale of jewelry industry products.

Laboratory-Created Diamonds — 16 CFR § 23.12

Section 23.12 addresses the definition and use of the word “diamond.” In discussing laboratory-created diamonds, § 23.12(c)(3) specifically recognizes the terminology “laboratory-created” and “laboratory-grown.”

The provision states that “cultured” may be used for qualifying laboratory-created diamonds when accompanied by a clear and conspicuous disclosure conveying that the product is not mined, giving as examples:

“laboratory-created,” “laboratory-grown,” “[manufacturer name]-created,” or some other word or phrase of like meaning.

The provision applies to laboratory-created diamonds having essentially the same optical, physical, and chemical properties as mined diamonds.

Citation: 16 CFR § 23.12(c)(3), Guides for the Jewelry, Precious Metals, and Pewter Industries.

Laboratory-Created Colored Gemstones — 16 CFR § 23.25

The FTC provides similar guidance for colored gemstones in 16 CFR § 23.25, which governs use of such gemstone names as ruby, sapphire, emerald and topaz.

Section 23.25(b) provides that when the name of a gemstone is used to describe a laboratory-created product, the nature of the product and the fact that it is not a mined gemstone must be clearly disclosed. Among the terminology expressly identified by the FTC for this purpose are:

“laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” or some other word or phrase of like meaning.

The significance of this language is further demonstrated by Note 2 to § 23.25(b). When discussing the use of “cultured” for a qualifying laboratory-created gemstone, the FTC again specifically identifies:

“laboratory-created,” “laboratory-grown,” “[manufacturer name]-created,” or some other word or phrase of like meaning

as examples of disclosures conveying that the gemstone is not a mined stone.

Citation: 16 CFR § 23.25(b), Note 2 to Paragraph (b), Guides for the Jewelry, Precious Metals, and Pewter Industries.

Both Terms Are Recognized by the FTC Guides

The language of the FTC Jewelry Guides is important because terminology surrounding laboratory-created diamonds and gemstones has generated considerable discussion within the jewelry industry.

The federal guidance does not restrict industry members to the term “laboratory-grown.” The Guides expressly recognize “laboratory-created” as well as “laboratory-grown” when the terminology is used appropriately and the disclosure clearly communicates that the diamond or gemstone is not mined.

For jewelers, appraisers, gemologists, educators, and others involved in describing these products, the federal guidance is therefore clear on an important point:

“Laboratory-created” and “laboratory-grown” are both terminology expressly recognized by the FTC Jewelry Guides for qualifying laboratory-created diamonds and colored gemstones.

The United States Gemological Institute encourages members of the jewelry industry to consult the actual FTC Jewelry Guides when establishing terminology and disclosure policies rather than relying upon terminology preferences established by individual industry organizations.

About the United States Gemological Institute

The United States Gemological Institute (USGI) provides professional gemological, jewelry appraisal, and industry education programs with an emphasis on practical application, consumer protection, and accepted industry standards.

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