【Singapore】Synthetic Diamond Producer Creates Trade Representative Body Prohibits the Use of the ‘S’-Word

A new trade body, the International Grown Diamond Association (IGDA), has a website where it introduces itself as “a not-for-profit organization that will seek to represent and promote the Grown Diamond industry and work towards creating awareness about Grown Diamonds. Founded in Singapore, IGDA seeks to serve as the central point of communication for the industry and a global platform to discuss all issues concerning the Grown Diamond industry and its stakeholders.” (The letters “G” and “D” consistently appear in capitals on IGDA’s elaborate website every time grown diamonds are mentioned.)

The IGDA endeavors “to lead IGDA members and Grown Diamond industry at various global forums (such as industrial, government and retail) and represent the industry on issues that impact the trade.” Actually, the association’s mission statement identifies about 10 different objectives, including to “encourage and monitor ethical industry practices and standards among IGDA members.”

It seems that those industry players, diamantaires, organizations and publications that, from time to time, had suspicions of – or exposed – the apparent misbehavior of some synthetic diamond producers finally have a responsible peer body that will investigate complaints and ensure that its members comply with best practices. This is excellent news.

At first, I thought that except for congratulating the gem-quality synthetic diamond producers, there wasn’t really a newsworthy story here. But then I got to the fourth and fifth articles in the IGDA’s Code of Ethics and Marketing Guidance.

Says the Guidance, “The term ‘Synthetic’ with respect to Grown Diamonds, is technically incorrect and misleading to the consumer. Members of IGDA will not use this term or any variation thereof to describe Grown Diamonds or products set with Grown Diamonds.”

Wow! How can following the United States Federal Trade Commission’s (FTC) rules, enacted to protect consumers and prohibit deceptive advertising, be considered “misleading”? Isn’t this IGDA requirement inconsistent with the other cornerstone of the Code of Ethics, namely that members must adhere to “all applicable international, national and local laws, rules and regulations which are relevant to the diamond industry”?

To reinforce this message, IGDA adds that, “the marketing guidance prescribed by IGDA will take priority for its members and respective Grown Diamond businesses.” The very term “grown diamonds” might well be an infringement of FTC rules. These rules require that the word “diamond” is immediately accompanied, with equal conspicuousness, by the words “laboratory-grown,” “laboratory-created,” or “[manufacturer-name]-created,” “synthetic,” or by some other word or phrase of like meaning, so as to clearly disclose that it is not a natural gem.

As a Gemological Institute of America (GIA) executive recently remarked, “Natural diamonds are grown within the earth.” Whether the term “grown diamonds” by itself can be accepted by the FTC is something IGDA ought to raise with the US authorities. By requiring its members to deviate from the four FTC approved terms, the association is taking on awesome responsibility – and it might create legal vulnerabilities for its members. So who are the IGDA’s members and main office holders?

The website immediately takes away any suspense. “Founding president of IGDA, Vishal Mehta, a dynamic professional has been associated with the Grown Diamond industry for over 8 years. Currently serving as the CEO of IIa Technologies, a leading grown diamond technology company, he’s committed to spread awareness about Grown Diamonds and promote their applications across a diverse set of applications and industries.” Vishal, of course, is better known as the son of Jatin Mehta and his wife Sonia and brother to Suraj.

Indeed, this is the very same Jatin Mehta, we should add, who is the founder and promotor of India’s Winsome Diamonds and Jewellery Ltd. (previously Su-Raj Diamonds and Jewellery Ltd.) that is under criminal investigation in India related to the mysterious non-payment of some $1.2 billion by some 13 Dubai customers who had bought diamond jewelry on credit terms. This led Winsome (and related companies) to default on a similar amount of debts to some 15 banks. As Jatin Mehta had personally guaranteed some or all of the Winsome loans, both Winsome and Jatin Mehta have been named willful defaulters by the Indian banking authorities.

Jatin’s personal involvement – and history – in synthetic diamonds is well known, but according to IGDA’s founding president, the key stakeholders in synthetics were and are solely Vishal himself and his mother Sonia.

Still under the heading “Founding Members,” the IGDA website stresses that “IGDA will be also supported in its mission by veterans and diamond industry experts like Richard Gerard, Professor [Devi] Misra, Lisa Bissell.”