This move, which aligns with the USA’s Federal Trade Commission (FTC) guidelines, aims to prevent the misrepresentation of lab-grown diamonds (LGDs) as natural ones, ensuring clarity and transparency within the diamond market. GJEPC is also urging updates to the Consumer Protection Act to reflect this definition.
“GJEPC will commence the process of educating Indian trade to ensure a level-playing field and compliance. This will ensure all key stakeholders of the trade value chain are responsible and empowered to guide, counsel, and advise consumers and consumer bodies to enhance consumer confidence,” said GJEPC chairman Vipul Shah.
The Council’s initiative is expected to create a more transparent and trustworthy marketplace for consumers and traders alike.
Distinguishing Natural from Lab-Grown
Under these new standards, terms such as real, genuine, natural, and precious can no longer be used to describe lab-grown diamonds. Instead, qualifiers like cultured, followed by laboratory-created or laboratory-grown, must be used. The FTC allows the use of “cultured” for LGDs, but with these qualifications to avoid consumer confusion. Although the term synthetic isn’t prohibited, it is not recommended by the FTC.
This distinction comes as the market for LGDs continues to grow, appealing to those who value ethical sourcing and affordability. However, for many, the timeless allure of a natural diamond remains irreplaceable.
Industry Reactions: Clarity and Confidence
The GJEPC’s decision has been met with widespread support from industry stakeholders, who believe it will enhance consumer confidence and strengthen the trade.
Nirav Taswala, Partner at Peacemoon Traders, Mumbai, applauded the move: “I support the GJEPC’s effort to demystify the difference between natural diamonds and lab-grown diamonds (LGDs). This will help grow consumer confidence and enlarge the platform of our trade. Personally, I would classify a diamond into two categories: natural or synthetic. A natural diamond is a natural diamond, and I wouldn’t mix up anything with that.”
Anil Patel, Founder Partner of Enshine, Surat, also backed the decision: “The GJEPC’s move to distinguish between LGDs and natural diamonds will segment the market, allowing both natural and LGDs to thrive separately. Natural diamonds appeal to those who value rarity and tradition, while LGDs attract consumers who appreciate ethical sourcing, environmental benefits, and affordability.”
Looking Ahead: Standardisation and Global Impact
By clearly defining what constitutes a diamond, the GJEPC’s new standards aim to create a more transparent global market. This initiative not only protects consumers but also ensures that both natural diamonds and lab-grown alternatives can coexist, each offering distinct value to different consumer segments.
With India’s leadership in the global diamond trade, these updated standards underscore the country’s commitment to maintaining high levels of integrity and consumer trust in an evolving market.