CIBJO Urges Diamond Consultation with FTC

RAPAPORT… The World Jewellery Confederation (CIBJO) has proposed
it work with other industry groups to consult with the US Federal Trade
Commission (FTC) over its fiercely debated diamond terminology.




Industry leaders attending the October 15 to 17
CIBJO Congress in Bogotá, Colombia, called for the sector to relay a clearer message to
consumers when marketing diamonds, whether natural or laboratory-grown.



“[Delegates] support the proposal that CIBJO
works alongside other industry organizations engaging with the US FTC regarding
the newly issued guidelines,” said a resolution the CIBJO Congress passed
unanimously on October 17.




The CIBJO Blue Book of standards and nomenclature
for the diamond industry was left unchanged despite the revised guidelines the
FTC released in July, which removed the word “natural” from its definition of a
diamond. FTC’s revision appeared to put
the body at odds with CIBJO’s standards.



Some industry leaders at the congress called
for diamond trade groups to support the Diamond Producers Association (DPA) and
lobby the FTC to change its guidelines.



Laboratory-grown diamonds have the potential
to disrupt the gem-and-jewelry business, but also could help it grow by opening
up markets that were previously more difficult to penetrate, CIBJO president
Gaetano Cavalieri observed.




“Our objective is not to alienate the
producers of such materials, but rather to welcome them into our community,” he
said in a keynote speech on October 15. “At the same time, we seek to protect
the established diamond industry, and in particular their stakeholders in
developing countries, for whom diamond mining is a source of livelihood and
economic opportunity.”



Diamantaires at the CIBJO Congress said they had
been wary of rewriting the carefully formulated definition of diamonds in the
Blue Book in response to regulatory changes in one country, in a reference to
the US FTC guidelines.




The real focus needs to be on relaying clear
messages to consumers about diamonds, noted Alex Popov, president of the Moscow
diamond bourse. “I stand by the Blue Book,” he told Rapaport News. “The
important thing is for the industry to be able to line up and provide a simple,
clear message to consumers about diamonds.”



Ernie Blom, president of the World Federation
of Diamond Bourses (WFDB), said he favored moves by industry groups to pursue a
dialogue with the FTC, adding that he also backed any initiatives to facilitate
a discussion between natural and lab-grown diamond producers.



“Do we continue to engage with the FTC to get
them to change their mind? Yes, we have to,” he commented. “It is [also]
important that the industry engages with synthetic producers.”



Stéphane Fischler, president of the World
Diamond Council (WDC), told Rapaport News his organization was prepared
to provide cross-industry support to continue the dialogue with the FTC.



Diamantaires expressed concerns over what they
termed “piggy-backing” by lab-grown producers on the natural-diamond trade to
sell their product, while failing to acknowledge the support that the natural-diamond
sector gives to local communities.



“This
is going to be a long, drawn-out scenario,” Blom concluded.



The 2019 CIBJO Congress will take place in Bahrain,
organizers said.



Image: A craftsman prepares to place a diamond in jewelry. (Luibov Luganskaia/Shutterstock)