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FTC says ''Cultured'' can describe MMDs

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Clark McEwen

Rough_Rock
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The following is the actual Press Release from the FTC.....

Commission Denies Petition Regarding Use of Term "Cultured" to Describe Laboratory-created Gemstones

Commission denial of petition from jewelry industry trade associations - The Commission has denied a petition submitted by the Jewelers Vigilance Committee (JVC) and 10 other jewelry industry trade associations requesting that the FTC amend the Guides for the Jewelry, Precious Metals, and Pewter Industries (Guides), 16 C.F.R. Part 23. As detailed in the petition, the trade groups sought an amendment to the Guides stating that it is deceptive or unfair to use the term "cultured" to describe laboratory-created gemstones, even when the man-made gemstones possess essentially the same optical, chemical, and physical properties of natural, mined gemstones. According to the petitioners, using "cultured" to describe such diamonds is either deceptive or unfair. The current Guides do not address whether the term "cultured" can be used to describe laboratory-created gemstones. Although the Guides do advise marketers to use specific qualifying language to make clear that the gemstones are created in a laboratory.

After reviewing the petition and the consumer perception surveys on which it relies, the Commission has declined to amend the Guides to state that it would be unfair or deceptive to use the term "cultured" to describe gemstones created in a laboratory. The Commission concluded that there is insufficient evidence to establish that the qualified use of the term "cultured diamonds" is deceptive or unfair. The Commission explained that even if the surveys demonstrate that the unqualified use of the term "cultured" to describe laboratory-created gemstones is misleading, there is no evidence to suggest that the use of the qualifying language set forth in the Guides fails to render the term non-deceptive. The Commission concludes that its staff will continue to evaluate advertising using the term "cultured diamonds" on a case-by-case basis and recommend enforcement action when appropriate

A copy of the Commission''s letter to the petitioners, the Petition and a submission from a laboratory-created diamond manufacturer in response to the Petition, can be found on the FTC''s Web site as a link to this press release. The Commission vote denying the petition was 4-0. (FTC File No. G711001; the staff contact is Robin Rosen Spector, Bureau of Consumer Protection, 202-326-3740.)
 
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