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India wants to protect consumer interests in diamond industry

25 november 2024

India plans to find consolidated rules for the diamond industry to protect consumer interests, the Press Information Bureau reported.

Industry experts insist on clear distinction between natural and lab-grown diamonds and standardization of terminology to avoid confusion, which currently exists and leads to consumer misconceptions.

To this end, the Central Consumer Protection Authority organized a meeting of the diamond industry representatives to develop approaches to terminology for naming diamonds.

According to the Medical Metrology Act, 2009, the unit of measurement for the mass of diamonds, pearls and precious stones is carat (symbol: c), equivalent to 200 milligrams or one five-thousandth of a kilogram, which provides standardized measurements for uniformity in commercial transactions in the diamond industry.

In addition, the Bureau of Indian Standards prescribes that the term "diamond" should refer exclusively to white stones. Synthetic stones cannot be labelled as ‘diamonds’ without qualification and should only be labelled as ‘synthetic diamonds’, regardless of the production method or material used. To maintain clarity in the market for synthetic diamonds, it is also recommended that they be compared to natural diamonds.

Under the Consumer Protection Act 2019, it is illegal to mislead consumers or omit anything that is likely to confuse them.

There is a consensus within the industry on the need for these marketing methods and harmonised terminology to enhance consumer protection. Comprehensive guidelines have been proposed and should be made mandatory:

• Clearly labelling and certifying all diamonds with their origin and production route.

• No coined terms such as ‘natural’ or ‘genuine’ to refer to lab-grown products.

• Accreditation systems to regulate and standardise diamond testing laboratories, supporting the growth of unregulated organisations.

The Press Information Bureau noted that the consultations were a necessary step towards creating a transparent and consumer-oriented diamond market. The Central Office for Consumer Protection will soon introduce a robust system to ensure transparency, accountability and consumer protection in the diamond industry.

Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished