Editor’s Note
This article offers practical guidance from industry experts on effectively communicating necessary disclosures to customers, whether in person or online. It is intended as helpful advice, not legal counsel.
What Must Be Disclosed
Everyone in the fine jewelry industry knows disclosures are necessary. The legal requirements help keep consumers properly informed. But many industry professionals struggle with how best to handle them. So, we talked to industry experts to get some top-notch guidance.
Please note that nothing here should be interpreted as legal advice. Rather, these are practical tips to help you communicate necessary information to your customers in person, online or on social media.
Let’s start with the basics by looking at what must be disclosed. According to Miya Owens, Esq., associate counsel of the Jewelers Vigilance Committee, the Federal Trade Commission guidelines make it legally necessary to disclose treatments of gemstones and laboratory-grown diamonds and/or gems.
“Whether communicated verbally or in writing,” says Owens, “sellers must disclose a treatment to a gemstone if that treatment either significantly affects the value of the gemstone (e.g., fractured-filled diamond) or is not permanent (e.g., certain dying of gemstones), or creates special care requirements (e.g., avoid supersonic cleaning).”
Owens further warns that only one of these factors must be at play to trigger the disclosure requirement. Some situations involve all three.
“For example, a diamond that is coated to appear a fancy color meets all three requirements, as that treatment significantly affects the value, is likely unstable and requires special care. The seller should also disclose special care requirements for treated gemstones, where appropriate.”
Sellers can consult the American Gem Trade Association Gemstone Information Manual for guidance regarding whether or not a treatment needs to be disclosed and to better understand the special care requirements that need to be relayed to the customer.
Lab-grown diamonds and gemstones must also be disclosed prior to the sale and in all forms of advertising.
According to Owens, “The FTC recommends the following descriptors for these products, ‘laboratory-grown,’ ‘laboratory-created,’ and ‘[manufacturer name]-created,’ all of which should be used contiguous with the word ‘diamond’ to avoid confusing or deceiving consumers.”
Further, Owens says that the FTC limits the type of language that can be used in disclosure statements. The guidelines also prohibit the use of certain words for laboratory-grown products, including “real,” “natural,” “genuine,” and “precious.”
Make sure everyone on your team knows the law and is familiar with what language can be used. As the saying goes, “Ignorance of the law is no excuse.”
In Person
Now let’s look at specific tips for sharing legally required information with a customer in person during a selling situation.
According to Debbie Azar, president and CEO of Gemological Science International, “In-person disclosures have the advantage of a human-to-human interaction where you can gauge any concerns your client may have and engage in an organic conversation to address any questions. Treatments, enhancements, synthetics, and laboratory-grown stones are not ‘bad,’ and it is often the salesperson’s or customer’s perception that they are, which translates into a ‘not-so-fun’ conversation.”
She recommends keeping it positive.
“Thanks to treated or enhanced gemstones, simulants and synthetics, gemstones and jewelry can be accessible at any price point. As long as it is clear what care and maintenance the piece requires (no ultrasonic cleaning, no harsh chemicals, no high heat, avoiding heavy work with hands for rings that may require a little TLC), your customer can rest assured that they know how to look after their piece, and you can avoid any dissatisfaction later.”
Azar also recommends using the conversation to strengthen your relationship with the customer.
“Set expectations. Let your customer know that the rhodium-plated ring may need re-plating at some point. Let them know how long the plating should last with regular wear. Tell them your store is there for them when the time comes. It is the unexpected that generally makes customers unhappy,” she says. “Also, use the conversation to open the opportunity to see your customers again for regular care and cleaning or checkups on their jewelry. In fact, this type of dialogue actually helps establish a regular relationship. In this way, disclosures are not only a requirement, but a benefit—they immediately build trust.”
The JVC’s Owens recommends making sure tags and signage at point-of-sale also include the necessary disclosures.
“For treated gemstones, I recommend sales associates ensure that any tags or printed items describing the gemstones as treated and noting the specific treatment are visible at all times to consumers. If a consumer asks why the stone is treated, the associates should be prepared with an honest answer, explaining the benefits of treated stones for certain budgets and the fact that certain (not all) treatments are common or necessary to make stones more attractive while maintaining affordability,” she says.
