New Delhi: The Central Consumer Protection Authority (CCPA) is drafting new guidelines to eliminate confusion between natural and lab-grown diamonds, addressing a long-standing issue in the industry.
A Call for Transparency
The CCPA held a stakeholder consultation meeting, led by Chief Commissioner Nidhi Khare, to tackle the rising need for transparency and accountability in differentiating diamond origins. Industry leaders, regulatory experts, and consumer advocates unanimously agreed on the urgency of addressing misleading marketing practices.
“Consumers have the right to know exactly what they are paying for,” Khare told Mint. She emphasized that the lack of transparency undermines trust in a diamond market built on exclusivity and authenticity.
Clear Labeling in Focus
Key recommendations include:
- Mandatory labeling to specify whether a diamond is natural or lab-grown.
- Detailed disclosures about the production methods for lab-grown diamonds.
- Eliminating misleading terms like “natural” or “genuine” for lab-grown diamonds.
Stakeholders also called for stricter regulation of diamond-testing laboratories, many of which operate without proper certification.
Strengthening the Legal Framework
Existing laws like the 2009 Legal Metrology Act, which defines carats as a unit of diamond measurement, and the 2019 Consumer Protection Act, which bans misleading descriptions, provide a foundation for the new guidelines. However, Khare noted that additional industry-specific directives are needed to enhance consumer protection.
“Our goal is to ensure the diamond market operates with the highest standards of transparency and fairness, empowering consumers to make informed decisions,” Khare added.
Guidelines Expected Soon
The CCPA plans to release a draft of the guidelines in the coming weeks. These are expected to include:
- Mandatory certification for all diamonds.
- Clear labeling requirements.
- Regulation of testing laboratories.
India, as a global leader in diamond processing and exports, stands to benefit significantly from these measures. The new norms aim to boost consumer confidence both domestically and internationally.
ConsumerVoice CEO Ashim Sanyal remarked, “These proposed standards will enhance consumer trust in both domestic and global markets.”