Lab-Created Diamonds | IN-DEPTH FEATURE L to R: Miadonna; Moi Moi Fine <strong>Jeweller</strong>y Lightbox Jewelry Still, skirmishes have occurred throughout this year, largely focused on advertising terminology and ethical claims. In February, the Natural Diamond Council (NDC) referred Diamond Foundry and its jewellery brand, Vrai, to US advertising watchdog the National Advertising Division (NAD), challenging descriptions and nomenclature used in digital marketing. “NAD determined that Diamond Foundry must, consistent with the Federal Trade Commission (FTC) Jewelry Guides, make an effective disclosure that its diamonds are man-made. NAD further found that, consistent with the FTC Jewelry Guides and the FTC Dot Com Disclosure publication, the advertiser should distinguish its [lab-grown diamonds] from mined diamonds,” a NAD statement read. The following month, NAD acted upon a complaint by Diamond Foundry against the NDC over claims that natural mined diamonds produce “three times less carbon emissions” than labcreated diamonds. NAD found that the NDC’s evidence for this claim was “not sufficiently reliable” and “concerned that such claims conveyed a broader implied message about the overall environmental benefits of mined diamonds versus man-made diamonds”, recommending it remove the claim alongside online advertising that referred to the “scarcity of mined diamonds [and] the resale value of mined diamonds versus man-made diamonds”. The body also determined that the NDC’s use of the term “real” to describe mined diamonds could, in context, incorrectly imply that lab-created diamonds had different chemical or physical properties to mined diamonds, and that consumers “may incorrectly conflate [lab-created diamonds], such as Diamond Foundry’s, with imitation diamonds like moissanite and cubic zirconia”. In May, organisations including the NDC, CIBJO, the World Diamond Council (WDC), the Responsible <strong>Jeweller</strong>y Council (RJC), and the International Diamond Manufacturers Association publicly called for Pandora Jewelry to retract elements of its statement announcing its decision to stop stocking natural diamonds. While calling the Pandora Brilliance range a “positive expansion of the jewellery industry”, the organisations explained, “The misleading narrative created by the Pandora announcement implying the natural diamond industry is both less ethical and the impetus behind Pandora’s move to lab-grown diamonds, particularly given the inconsequential amount of diamonds Pandora features in its collections, can have unintended but substantial consequences on communities in developing nations.” It is clear that, while still small, the lab-created diamond category has potential, and offers jewellery retailers opportunities to appeal to new customers – without encroaching on existing diamond sales" According to research commissioned by the NDC – then known as the Diamond Producers Association – in 2019, diamond mining was found to create social benefits that the labcreated sector did not, including an estimated $US16 billion annually to communities, largely in developing nations, through direct employment, purchase of goods and services, and funding of social programs. Still, Diamond Foundry’s Martin says diamond mining companies are in a “difficult situation” as mining “necessarily depletes natural resources; it is by definition not sustainable”. “Recently, there have been important rulings in North America to increase clarity in the marketing of mined diamonds. Most importantly, there is a push to ensure transparency in the market, broad consumer choice, and awareness of where a diamond is from and the environmental impact,” she explains. Meanwhile, the RJC has recently announced that it will develop a best-practice standard specifically for 'lab-grown materials' (LGMs), beyond its existing Code of Practices. Iris Van der Veken, executive director of the RJC, said, “Setting a standard for LGMs is an important strategic initiative by RJC, underlining our commitment to ensure that all jewellery is responsibly sourced, manufactured and marketed. It is all about consumer confidence. “This standard will provide a clear, robust framework not only for manufacturers and retailers, but also for reassuring customers that the manufacturers and sellers of LGMs follow rigorous processes that ensure the credibility and transparency of their operations.” Observes Miller, “Every industry faces their challenges, and the mined space is being challenged by lab-grown. "Both mined and lab-grown need to push their strengths and see what appeals to each customer. Ongoing negative engagement between the two sides will only push consumers to spend their money in other industries.” Adds Edwards, “Reduced pricing, increased consumer demand and acceptance – with overall more general market awareness – highlights that lab-grown diamonds are fast becoming a core and essential category within the trade.” It is clear that, while still small, the lab-created diamond category has potential, and offers jewellery retailers opportunities to appeal to new customers – without encroaching on existing diamond sales. 38 | <strong>October</strong> <strong>2021</strong>
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