Division of Enforcement 

Bureau of Consumer Protection 

VIA EXPRESS MAIL 

Dear Sir or Madam: 

United States of America 

FEDERAL TRADE COMMISSION 

Washington, D.C. 20580 

March 26, 2019 

After reviewing your website, Instagram, and Twitter advertising, we have concerns that some of 

your advertising of jewelry made with laboratory-created diamonds likely falsely implies that the 

jewelry has mined diamonds. The FTC enforces the Federal Trade Commission Act, 15 U.S.C. § 

45, which prohibits deceptive advertising. In July 2018, the FTC issued updated Guides for the 

Jewelry, Precious Metals, and Pewter Industries, 16 C.F.R. Part 23 ("Jewelry Guides"). ' These 

Guides provide marketers with detailed information about how to make non-deceptive 

representations about jewelry and related products, including mined, laboratory-created, and 

simulated diamonds. 

The FTC staff is concerned that some of your advertising fails to conform to the Jewelry Guides 

and therefore may deceive consumers, in violation of Section 5 of the FTC Act. 

Similarly, several Instagram and Twitter advertisements depict or reference 

diamond jewelry without clearly and conspicuously disclosing that the diamonds are laboratorycreated. Neither the company name the hashtag #labgrowndiamonds, nor. 

· the statement appearing in some of this advertising clearly 

and conspicuously discloses that the diamonds are laboratory-created. Although you disclose on 

several of your webpages that-....ilnarkets laboratory-created diamonds, 

consumers could easily overlook these webpages and other references to laboratory-created 

diamonds when reviewing individual advertising or product descriptions because the disclosures 

are not proximate to the individual advertising or product descriptions. 

1 You can find the FTC's Statement of Basis and Purpose summarizing and explaining the 

rationale for the amendments to the Jewelry Guides at 

https://www.ftc.gov/system/:files/documents/public statements/1393857 /g71001 jewelry guides 

statement of basis and purpose final 8-8-18.pdf. 
We recommend that you review your marketing materials, both on Instagram and in any other 

medium, with the following in mind: 

The Jewelry Guides caution marketers not to use the name of any precious stone, including 

diamonds, to describe a laboratory-created stone, unless such name is immediately preceded by a 

clear and conspicuous disclosure that the product is not a mined stone. See section 23 .25 of the 

Guides. Specifically, section 23.25(b) states: 

It is unfair or deceptive to use the word " ruby," "sapphire," " emerald," " topaz," or 

the name of any other precious or semi-precious stone, or the word "stone," 

" birthstone," "gem," "gemstone," or similar term to describe a laboratory-grown, 

laboratory-created, [ manufacturer name ]-created, synthetic, imitation, or simulated stone, 

unless such word or name is immediately preceded with equal conspicuousness by the 

word " laboratory-grown," " laboratory-created," " [ manufacturer name ]-created," or 

some other word or phrase oflike meaning, or by the word " imitation" or "simulated," 

so as to disclose clearly the nature of the product and the fact it is not a mined gemstone. 

For general guidance on making adequate qualifying disclosures online, please see the FTC's 

guidance ".com Disclosures: How to Make Effective Disclosures in Digital Advertising" at 

https :/ /www.ftc.gov/ system/files/ documents/plain-language/bus41-dot-com-disclosuresinformation-about-onl ine-advertising. pdf. 

Furthermore, in a series of litigated decisions during the 1960s, the Commission determined, 

among other things, that it is an unfair or deceptive act or practice in violation of Section 5 of 

the FTC Act, 15 U.S.C. § 45, to misrepresent simulated diamonds, emeralds, rubies, precious 

stones, and pearls as natural ones. The Commission determined the following specific marketing 

practices to be unfair and deceptive, and hence unlawful under the FTC Act, and issued orders 

addressing the practices: 

(1) Marketing simulated diamonds using the word "gem" without "clearly disclosing, at the 

same time, that [their] stones are not natural stones or natural gems, thereby implying that 

their stones are a counterpart of natural, precious or semi-precious gems or stones," 

Harry E. Straus et al. trading as Capra Gem Co. , 63 F.T.C. 1912, 1939-41 (Dec. 18, 

1963); 

(2) Marketing simulated emeralds as emeralds or cultured emeralds, Carroll F Chatham 

trading as Chatham Research Laboratories et al., 64 F.T.C. 1065 (Feb. 28, 1964); 

(3) Marketing synthetic jewels in watches as rubies, Art Nat '! Manufacturers Distributing 

Co., 58 F.T.C. 719 (May 10, 1961), ajf'd, 298 F.2d 476 (2nd Cir.), cert. denied, 370 U.S. 

939 (1962); and He/bros Watch Co., 59 F.T.C. 1377 (Dec. 26, 1961), ajf'd, 310 F.2d 868 

(D.C. Cir. 1962), cert. denied, 372 U.S. 976 (1963), rehearing denied, 374 U.S. 85 

(1963); 

(4) Marketing jewelry insets made of glass or materials other than precious stones as "jewel 

stones," Michael Z. Berger et al. dlb/a M Z. Berger & Co., 56 F.T.C. 1000 (Mar. 7, 

1960); and 

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(5) Marketing simulated pearls as cultured or genuine pearls, respectively, Panat Jewelry Co. 

71 F. T. C. 99 (Feb. 8, 1967), and Sidney J Greenblat et al. trading as G & G Mfg. & 

Souvenir Co., 62 F.T.C. 663 (Feb. 19, 1963). 

Marketers who knowingly engage in acts or practices determined by the Commission to be unfair 

or deceptive and unlawful, such as those described above, have potential liability for civil 

penalties under Section 5(m)(l)(B) of the FTC Act, 15 U.S.C. § 45(m)(l)(B). The current 

maximum penalty for each violation under Section 5(m)(l )(B) is $42,530. See 16 C.F.R. § 1.98. 

Copies of the FTC determinations cited above are on the FTC's website under "Related 

Documents" at https://www.ftc.gov/news-events/media-resources/tools-consumers/jewelryguides. 

Finally, your advertising also touts the environmental benefits of your jewelry compared to 

mined diamonds. We note that marketers must have a reasonable basis for any environmental 

benefit claims they make for their products, and qualify any such claims adequately to avoid 

deception. The FTC has issued "Green Guides" providing guidance on making such claims 

non-deceptively. You can find information about the Green Guides at 

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/green-guides. 

Please advise us by April 8, 2019 of the steps you plan to take to revise your marketing so that it 

follows the Jewelry Guides and therefore complies with Section 5 of the FTC Act. 

Please note that we limited our review of your online advertising to the marketing of jewelry 

containing or purporting to contain diamonds or simulated diamonds. We did not attempt to 

determine whether the advertising might deceive consumers in other respects. The opinions 

expressed in this letter are those of the staff and not necessarily those of the Commission or of 

any Commissioner. 

Thank you for your attention to this matter. If you have any questions, please contact Robert 

Frisby at 202-326-2098 or rfrisby@ftc.gov. 

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