The Union government held a crucial meeting to address the critical concerns regarding the lack of standardised terminology and inadequate disclosure practices in the diamond sector.
It was noted that these gaps in the diamond sector have resulted in consumer confusion and misleading practices, especially concerning the differentiation between natural diamonds and lab-grown diamonds.
The Stakeholder Consultation on Consumer Protection in the Diamond Sector was organised by the Central Consumer Protection Authority (CCPA) to deliberate on the use of appropriate terminology for diamonds.
According to the information shared by the Ministry of Consumer Affairs, broad key aspects and prevailing Legal and Regulatory frameworks were discussed in detail at the meeting.
Comprehensive guidelines were proposed to mandate explicit labeling and certification of all diamonds, specifying their origin and production method; Prohibition of misleading terms like “natural” or “genuine” for lab-grown products; and Accreditation systems to regulate and standardize diamond testing laboratories, curbing the rise of unregulated entities.
The stakeholders deliberated upon the Legal Metrology Act, 2009, under Section 12, which provides the unit of mass for diamonds, pearls, and precious stones as the carat (symbol: c), equivalent to 200 milligrams or one five-thousandth of a kilogram, ensuring standardized measurements for consistency in commercial transactions across the diamond industry.
They also discussed the Bureau of Indian Standards (BIS) Standard IS 15766:2007 which mandates that the term “diamond” alone must exclusively refer to natural diamonds.
Notably, BIS says synthetic diamonds cannot be labeled as “diamonds” without qualification and must be explicitly referred to as “synthetic diamonds”, irrespective of the production method or material used.
To maintain market clarity, synthetic diamonds are also prohibited from being graded alongside natural diamonds.
Industry consensus emphasised the need for ethical marketing practices and consistent terminology to enhance consumer protection.