Mumbai: The U.S. Federal Trade Commission (FTC) which investigates allegations of misleading advertises made it clear on April 2, that it has sent warning letters to eight companies, including Diamond Foundry, insisting that they distinguish in advertisements between diamonds that come from mines and those made in laboratories, reports Reuters.
According to the report, The Diamond Producers Association (DPA), which represents mining companies like De Beers, Rio Tinto and ALROSA, has welcomed the FTC insistence.
“The DPA has for several months expressed serious concerns about misleading marketing communication and unsubstantiated eco claims coming from many laboratory-grown diamond marketers,” said DPA Chief Executive Jean-Marc Lieberherr.
De Beers too said it was pleased by the move, saying the two kinds of diamonds were distinct product categories and that it sells the lab-made diamonds for less than rivals to emphasize the difference between what it sees as fun, fashion jewelry and Natural diamonds created in the earth and with a high resale value.
The FTC also asked the companies to review the use of ‘eco-friendly’ or similar terms to describe diamonds made in a laboratory.
‘It is highly unlikely that they can substantiate all reasonable interpretations of these claims,’ FTC reportedly mentioned in its letters.