India’s Central Consumer Protection Authority (CCPA) recently held a meeting to develop standardized terminology for distinguishing between natural and lab-grown diamonds, addressing long-standing consumer confusion and misleading practices in the diamond industry.
Tackling Industry Challenges
“There is an urgent need to address critical concerns regarding inadequate disclosure practices,” the CCPA stated. The lack of clear terminology has led to misleading trade practices, prompting action from government authorities.
The Bureau of Indian Standards mandates that the term "diamond" refers exclusively to natural stones. Lab-grown diamonds must be explicitly labeled as “synthetic diamonds”, regardless of production method or material. Additionally, synthetic diamonds cannot be graded alongside natural diamonds.
Strengthening Consumer Protections
India’s 2019 consumer protection act prohibits unfair trade practices and enforces transparent labeling in the diamond sector. This was further reinforced by the Central Board of Direct Taxes and Customs, which now requires companies to declare:
- Whether a diamond is natural or lab-grown.
- If lab-grown, the production method used, such as chemical vapor deposition (CVD) or high-pressure high-temperature (HPHT).
Key Outcomes from the Meeting
The CCPA and other government entities outlined new guidelines:
- Explicit labeling to specify the origin and production method of diamonds.
- Prohibition of misleading terms like “natural” or “genuine” for lab-grown diamonds.
- Accreditation systems to regulate diamond-testing laboratories.
A comprehensive set of guidelines will be released soon, marking a significant step toward greater transparency in the diamond industry.