The Central Consumer Protection Authority (CCPA) has taken a proactive step to address consumer concerns in the diamond sector by organising a stakeholder consultation on 19th November to develop guidelines for consumer protection.
According to a statement from the Ministry of Consumer Affairs, Food & Public Distribution, the consultation, chaired by Smt. Nidhi Khare, Chief Commissioner of the CCPA, brought together key industry stakeholders and experts to discuss the pressing issue of standardised terminology for natural and lab-grown diamonds (LGDs), thus preventing confusion and misleading practices at the consumer level. Industry experts emphasised the importance of ethical marketing practices and consistent terminology to ensure consumer protection.
During the consultation the broad key aspects and prevailing Legal and Regulatory frameworks were discussed in detailed. For example, the Legal Metrology Act, 2009, under Section 12, provides the unit of mass for diamonds, pearls, and precious stones as the carat (symbol: c), equivalent to 200 milligrams or one five-thousandth of a kilogram, ensuring standardised measurements for consistency in commercial transactions across the diamond industry.
The Bureau of Indian Standards (BIS) Standard IS 15766:2007 mandates that the term “diamond” alone must exclusively refer to natural diamonds. Synthetic diamonds cannot be labelled as “diamond” without qualification and must be explicitly referred to as “synthetic diamonds,” irrespective of the production method or material used. To maintain market clarity, synthetic diamonds are also prohibited from being graded alongside natural diamonds.
Under the Consumer Protection Act, 2019, a robust legal framework to safeguard consumer interests by preventing unfair trade practices and ensuring transparent labelling in the diamond industry is provided. Which prohibits misleading descriptions or omissions that may confuse consumers.
Based on the discussions, the CCPA is proposed the following comprehensive guidelines:
- Explicit labelling and certification of all diamonds, specifying their origin and production method.
- Prohibition of misleading terms like “natural” or “genuine” for lab-grown products.
- Accreditation systems to regulate and standardise diamond testing laboratories, curbing the rise of unregulated entities.
The Central Consumer Protection Authority will soon release a robust framework to ensure transparency, accountability, and consumer protection across the diamond industry.