CIBJO Urges Consultation with FTC over Diamonds

RAPAPORT... The World Jewellery Confederation (CIBJO) has proposedit work with other industry groups to consult with the US Federal TradeCommission (FTC) over its fiercely debated diamond terminology.Industry leaders attending the October 15 to 17CIBJO Congress in Bogot??, Colombia, called for the sector to relay a clearer message toconsumers when marketing diamonds, whether natural or laboratory-grown. "[Delegates] support the proposal that CIBJOworks alongside other industry organizations engaging with the US FTC regardingthe newly issued guidelines," said a resolution the CIBJO Congress passedunanimously on October 17.The CIBJO Blue Book of standards and nomenclaturefor the diamond industry was left unchanged despite the revised guidelines theFTC released in July, which removed the word "natural" from its definition of adiamond. FTC's revision appeared to putthe body at odds with CIBJO's standards. Some industry leaders at the congress calledfor diamond trade groups to support the Diamond Producers Association (DPA) andlobby the FTC to change its guidelines. Laboratory-grown diamonds have the potentialto disrupt the gem-and-jewelry business, but also could help it grow by openingup markets that were previously more difficult to penetrate, CIBJO presidentGaetano Cavalieri observed."Our objective is not to alienate theproducers of such materials, but rather to welcome them into our community," hesaid in a keynote speech on October 15. "At the same time, we seek to protectthe established diamond industry, and in particular their stakeholders indeveloping countries, for whom diamond mining is a source of livelihood andeconomic opportunity." Diamantaires at the CIBJO Congress said they hadbeen wary of rewriting the carefully formulated definition of diamonds in theBlue Book in response to regulatory changes in one country, in a reference tothe US FTC guidelines.The real focus needs to be on relaying clearmessages to consumers about diamonds, noted Alex Popov, president of the Moscowdiamond bourse. "I stand by the Blue Book," he told Rapaport News. "Theimportant thing is for the industry to be able to line up and provide a simple,clear message to consumers about diamonds." Ernie Blom, president of the World Federationof Diamond Bourses (WFDB), said he favored moves by industry groups to pursue adialogue with the FTC, adding that he also backed any initiatives to facilitatea discussion between natural and lab-grown diamond producers. "Do we continue to engage with the FTC to getthem to change their mind? Yes, we have to," he commented. "It is [also]important that the industry engages with synthetic producers." St?(C)phane Fischler, president of the WorldDiamond Council (WDC), told Rapaport News his organization was preparedto provide cross-industry support to continue the dialogue with the FTC. Diamantaires expressed concerns over what theytermed "piggy-backing" by lab-grown producers on the natural-diamond trade tosell their product, while failing to acknowledge the support that the natural-diamondsector gives to local communities. "Thisis going to be a long, drawn-out scenario," Blom concluded. The 2019 CIBJO Congress will take place in Bahrain,organizers said.Image: A craftsman prepares to place a diamond in jewelry. (Luibov Luganskaia/Shutterstock)