Mine vs Lab diamonds: CCPA cracks down on diamond sector to prevent misleading practices

The apex body of consumer rights will be releasing guidelines for the diamond sector, ensuring explicit labelling of the precious stones and prohibiting the misleading terms in trade.

The Central Consumer Protection Authority (CCPA) held a discussion on the use of appropriate terminology for diamonds on Tuesday. During the meeting, the stakeholders emphasized on prohibition of misleading terms like “natural” or “genuine” for lab-grown products.

The meeting addressed critical concerns regarding the lack of standardized terminology and inadequate disclosure practices in the diamond sector. According to the Ministry of Consumer Affairs, Food & Public Distribution, the gaps have resulted in consumer confusion and misleading practices, especially concerning the differentiation between natural diamonds and lab-grown diamonds.

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Notably, the Bureau of Indian Standards (BIS) Standard mandates that the term "diamond" alone must exclusively refer to natural diamonds. Synthetic diamonds cannot be labeled as "diamond" without qualification and must be explicitly referred to as “synthetic diamonds,” irrespective of the production method or material used.

Under the Consumer Protection Act, 2019, a robust legal framework to safeguard consumer interests by preventing unfair trade practices and ensuring transparent labeling in the diamond industry is provided.

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Further, Central Board in Direct Taxes and Custom (CBIC) has mandated the explicit declaration of whether a diamond is natural or lab-grown, and if lab-grown, the production method—Chemical Vapor Deposition (CVD), High Pressure High Temperature (HPHT), or others—must be specified to ensure transparency and accountability in the diamond sector.