By Rod Davis, CEO BBB Serving Southeast Florida and the Caribbean
When shopping for precious metals or stones, don’t be blinded by the excitement of the moment or shimmer of a stone. Whether it is a wedding ring or a gift for yourself, precious metals and stones are also a major investment.
The Federal Trade Commission recently sent warning letters to 8 businesses for failing to advertise honestly. The FTC stated that “What matters to consumers – and the FTC – is that companies accurately describe what they’re selling. In addition to mined diamonds, consumers can choose simulated diamonds or diamonds created in a laboratory.”
In July 2018, the FTC issued its updated “Guides for the Jewelry, Precious Metals, and Pewter Industries.” The Jewelry Guides give marketers detailed information about how to make non-deceptive claims about their products – including jewelry made with mined, laboratory-created, and simulated diamonds.
For us as consumers what it means is that:
It is unfair or deceptive to use the word “ruby,” “sapphire,” “emerald,” “topaz,” or the name of any other precious or semi-precious stone, or the word “stone,” “birthstone,” “gem,” “gemstone,” or similar term to describe a laboratory-grown, laboratory-created, [manufacturer name]-created, synthetic, imitation, or simulated stone, unless such word or name is immediately preceded with equal conspicuousness by the word “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” or some other word or phrase of like meaning, or by the word “imitation” or “simulated,” so as to disclose clearly the nature of the product and the fact it is not a mined gemstone.
The FTC also cited advertising in social media that failed to provide clarity to consumers. The FTC uses a standard that all essential terms and conditions should be clear and conspicuous. When essential information is in small print or not close in proximity to the primary ad terms, consumers may not see it and, as a result, make a purchase without knowing all key information. Social media is opening new ways for businesses to interact with potential customers. There are many innovative and fun ad campaigns on social media, but the same disclosure requirements apply to advertising no matter which format is used.
So, what are you as a consumer supposed to do? The good news is that most reputable jewelers and sellers of precious metals play by the rules. As always, do your due diligence to check out the reputation of the business. Check them out on BBB.org and other sites. Being a BBB Accredited jeweler and/or being a member of one of the leading association groups (e.g. Jewelers of America, etc.) demonstrates a commitment to standards. BBB Accredited Businesses commit to abide by the BBB Code of Business Practices. The BBB Code includes a requirement to honestly and clearly convey all relevant information. The industry associations establish standards to reinforce best practices within that industry. Most notably in this instance, the Jewelers of America members commit that they will:fully and accurately disclose the material characteristics of the products and merchandise we sell.
If you are making a significant purchase, you may also want to have the product certified by the Gemological Institute of America (GIA) or by another reputable body. Precious metals can also be tested, and it is wise to have an evaluation completed by an independent expert before closing the deal on any major purchase.
At your BBB we are routinely evaluating advertising and working with businesses to improve the quality and fairness of information about products and services. BBB Accredited Businesses agree to work with BBB to resolve any issues. If a business fails to live up to BBB Standards, their BBB Accreditation is revoked and their online profile with BBB shares information with consumers about that issue so they are able to evaluate whether the business is reputable in their eyes. BBB also monitors the advertising for businesses not accredited by BBB. If a business were to use advertising that hides key facts or details from consumers, and they failed to correct the advertising after notice from BBB, their report would also document the issue to inform potential consumers.
You play a key role in helping BBB promote truthful advertising. If you see an ad that appears deceptive, or if a business is not disclosing important terms in a clear manner, you can share that information with BBB. You can visit the BBB website to learn more about truthful advertising and report concerns: bbb.org/ad-truth/.
