CCPA to Issue Guidelines for the Diamond Industry to Protect Consumer Rights

The Central Consumer Protection Authority (CCPA) will soon issue new guidelines for the diamond industry, aiming to ensure that all diamonds are clearly labeled and certified, as well as banning the use of misleading terms in the trade.

According to an official statement, the CCPA on Tuesday held a stakeholder consultation focusing on consumer protection in the diamond industry, with particular emphasis on establishing the correct terminology for diamonds.

The consultation, chaired by CCPA Chief Commissioner Nidhi Khare, brought together key industry leaders and experts to discuss the issue. “The CCPA will soon publish a robust framework to ensure transparency, accountability and consumer protection in the diamond industry,” the statement said.

The meeting focused on addressing key concerns in the diamond industry, including the lack of standardized terminology and inadequate disclosure practices. “These loopholes have led to consumer confusion and misleading practices, particularly regarding the distinction between natural diamonds and lab-grown diamonds,” he noted.

Industry consensus highlighted the urgent need for ethical marketing practices and consistent terminology to strengthen consumer protection in the diamond industry.

“It has been proposed to mandate comprehensive guidelines: Clearly labeling and certification of all diamonds, indicating origin and method of production; banning misleading terms such as ‘natural’ or ‘original’ for laboratory-grown products; accreditation systems to regulate and standardize diamond testing laboratories. ” “To prevent the rise of unregulated entities.”

Basic legal and regulatory frameworks were discussed in detail during the session. For example, the CCPA referred to the Legal Metrology Act 2009, which defines the unit of mass for diamonds, pearls and gemstones under Part 12 as the carat (symbol: c), which is equivalent to 200 milligrams or one five-thousandth. one kilogram. This provides standardized measurements in the diamond industry for consistency in business transactions.

Bureau of Indian Standards (BIS) Standard IS 15766:2007 mandates that the term “diamond” refers only to natural diamonds. Synthetic diamonds cannot simply be labeled as “diamonds”; Regardless of the production method or material, they must be clearly labeled as “synthetic diamonds”. Additionally, to maintain market clarity, synthetic diamonds are prohibited from being graded alongside natural diamonds.

Under the Consumer Protection Act 2019, a robust legal framework exists to protect consumers by preventing unfair trade practices in the diamond industry and ensuring transparent labeling. This law prohibits misleading statements or omissions that may confuse consumers.

Additionally, the Central Board of Indirect Taxes and Customs (CBIC) has strengthened these measures by making it mandatory to clearly declare whether the diamond is natural or laboratory-grown. If grown in a laboratory, the method of production (Chemical Vapor Deposition (CVD), High Pressure High Temperature (HPHT) or other methods) should be clearly stated to promote transparency and accountability in the industry.

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