Enhanced Color Diamonds and Customer Disclosure

We strongly recommend that sellers of COLORed DIAMONDS take the following steps to provide their customers full disclosure about these stones and avoid any possible legal issues.

Provide Customer with Written Disclosure – Always put in writing the fact that the stones are color-enhanced. This includes your invoice or bill to the customer – as well as display information, such as showcase labels and jewelry tags.

Inform Customer of Special Care Requirements – In the case of color enhanced diamonds, this means telling the buyer to notify his jeweller that the stone is color-enhanced. This way the jeweler will avoid direct exposure of the stones to temperatures above 450 C/850 F and follow the proper procedures in case of resizing. See tips on care.

Federal Trade Commission Guidelines Regarding Disclosures

If you’re selling enhanced color diamonds within the US, you should be aware of the following FTC guidelines regarding disclosure for any enhanced or treated gemstones. If you’re selling color enhanced diamonds outside the US, please check your country’s regulations regarding disclosure:

§ 23.22 Disclosure of treatments to gemstones.

It is unfair or deceptive to fail to disclose that a gemstone has been treated if:

(a) the treatment is not permanent. The seller should disclose that the gemstone has been treated and that the treatment is or may not be permanent;

(b) the treatment creates special care requirements for the gemstone. The seller should disclose that the gemstone has been treated and has special care requirements. It is also recommended that the seller disclose the special care requirements to the purchaser.

(c) the treatment has a significant effect on the stone's value. The seller should disclose that the gemstone has been treated.

Note to § 23.22: The disclosures outlined in this section are applicable to sellers at every level of trade, as defined in § 23.0(b) of these Guides, and they may be made at the point of sale prior to sale; except that where a jewelry product can be purchased without personally viewing the product, (e.g., direct mail catalogs, online services, televised shopping programs) disclosure should be made in the solicitation for or description of the product.

By direction of the Commission

Donald S. Clark

Secretary