Promote the many aspects of diamond clarity
Last month, the FTC issued staff warning letters to eight companies that advertised simulated or lab-grown diamonds. According to the letters, the companies promoted their products without adequately disclosing that they were not mined diamonds. Since then, industry members have been discussing the best ways to ensure compliance with the Federal Trade Commission’s jewelry guidelines, which are designed to help companies avoid confusing or deceiving consumers. We asked FTC attorney Robert Frisby some of the questions we heard.
Our company sells simulated or lab-grown diamonds as an alternative to mined diamonds. Should we reveal that our products are not mined?
Robert: Yes. To avoid the risk of deceiving consumers about the type of jewelry you offer, advertisers selling simulated or lab-grown diamonds should disclose that these products are not mined diamonds. Simply describing simulated or lab-grown diamonds as “diamonds” without further description may give consumers the wrong impression that they are purchasing mined diamonds. Using a brand name that includes the word “diamond” without a clear explanation to back up your claim presents the same problem. (In this context, a “qualified” statement is one that is appropriately qualified, explained, or narrowed in scope.) Similarly, imitation or simulated diamonds (such as cubic zirconia) are described without explicit qualification as “experimental.” “Laboratory-grown diamonds” may lead consumers to draw inaccurate conclusions that the product has the same optical, physical, and chemical properties as lab-grown or mined diamonds.
What terminology should we use to indicate that our simulated or lab-grown diamonds are not mined diamonds?
Robert: Use terminology that clearly communicates to consumers that the item is a simulated or lab-grown diamond and not a mined diamond. Although the FTC’s Jewelry Guidelines do not specify the wording you should use when disclosing information, the Jewelry Guidelines provide that the terms “laboratory-produced,” “laboratory-made,” “[manufacturer name]”Create,” “imitation,” or “simulation” are appropriate to describe the nature of the product and disclose the fact that it is not a mined diamond. The guidance gives advertisers the flexibility to use other “words or phrases of similar meaning” in disclosures. However, if you choose to use alternative phrases, be careful to ensure consumers understand them.
How and where should we disclose that simulated or lab-grown diamonds are not mined diamonds?
Robert: What matters is that consumers see, read and understand the meaning. That’s why advertisers should make these disclosures clearly, prominently, and close to where the ad uses the term “diamond” to describe jewelry. Additionally, this reveal should come early in the product description. Placing it at the end of a long text block or on a different web page (for example, on a FAQ or Diamond Education page) is not enough because consumers may skip it. However, in a particular ad, you may not have to repeat the same disclosure if the nature of the item for sale is clear from the context.
In social media advertising, can we use hashtags for disclosure?
Robert: Be careful when using hashtags to reveal information necessary to avoid deception. A hashtag at the end of a social media post may not convey the message effectively, especially if it appears in a series of other hashtags or if other hashtags may contradict it. For example, a list of hashtags that includes both #diamonds and #labgrown may confuse consumers about whether a product contains mined diamonds.Just a reminder: Advertisers are responsible all Reasonable explanations for their advertising, including ads on social media that make claims or fail to fully disclose them.
What if we wanted to promote the environmental benefits of our simulated or lab-grown diamonds?
Robert: The U.S. Federal Trade Commission’s (FTC) Guidelines for the Use of Environmental Marketing Claims (Green Guides) provide advice on how to make environmental claims in a non-deceptive manner. Keep in mind two basic principles: 1) Any environmental benefit claims an advertiser makes for their products must have a reasonable basis; 2) Advertisers must fully substantiate their claims to avoid deception. The Green Guide advises advertisers to avoid making unqualified general environmental benefit claims, such as “environmentally friendly”, as advertisers are unlikely to substantiate all reasonable explanations for these claims. Better still is for advertisers to qualify general claims by revealing specific reasons why a product has environmental benefits. Section 260.4 of the Green Guide provides examples of claims that may be appropriately qualified in the circumstances.
from Tech Empire Solutions https://techempiresolutions.com/promote-the-many-aspects-of-diamond-clarity/
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from Tech Empire Solutions https://techempiresolutions.blogspot.com/2024/02/promote-many-aspects-of-diamond-clarity.html
via https://techempiresolutions.com/
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