Our Thanks to Dawn Rivers Baker, (Editor WAHMPRENEUR News Magazine - Business news for women who work where they live) for this contribution to our newsletter.

 

FTC PRESS RELEASE
For Release: December 1, 2000

FTC Amends Its Guides for the Jewelry Industry; Changes Address Disclosures for Permanent Gemstone Treatments Such as Laser Drilling.

The Federal Trade Commission today announced that it is amending its Guides for the Jewelry, Precious Metals and Pewter Industries, commonly known as the Jewelry Guides, to require disclosure of permanent treatments to gemstones that significantly affect the value of the gemstone, which would include laser drilling of diamonds. Disclosing these types of gemstone treatments will ensure that consumers obtain accurate information about jewelry products and that sellers avoid unfair or deceptive practices. Failure to provide disclosures could be a violation of Section 5 of the FTC Act.

The amendments announced today revise Sections 23 13 and 23 22 of the Guides based on comments received following proposed revisions outlined last summer. These sections of the Guides address the treatment of diamonds and other gemstone products. Previously, the Guides addressed only the disclosure of gemstone treatments that are not permanent or that create special care requirements for the gemstone. The revised Guides advise that sellers disclose other treatments that, while permanent and not creating special care requirements, significantly affect the value of a gemstone.

In addition, Sections 23 13 and 23 22 of the Guides have been combined Section 23 13, in the diamonds section of the Guides, now directs readers to Section 23 22, which addresses treatments to all gemstones. Section 23 22 contains new text that states that three types of gemstone treatments should be disclosed:

1) treatments that are not permanent;

2) treatments that create special care requirements for the gemstone; and

3) treatments that significantly affect the value of a gemstone.

The Jewelry Guides are among the oldest of the Commission's business guides and are relied on extensively within the industry. They were most recently revised in 1996 to make them compatible with international standards and to address several gemstone treatment advances.

The Commission vote to approve publication of the Federal Register notice was 5-0. It will be published shortly and also will be available from the FTC's Web site at www.ftcgov. The amended Guides will become effective on April 10, 2001.