CCPA seeks to polish diamond framework; invites stakeholder views for norms

Amid the growing debate and confusion between natural and lab-grown diamonds, the CCPA, recognizing customer concerns, held a meeting on November

The Central Consumer Protection Authority (CCPA) has invited stakeholders to submit their suggestions on the proposed diamond certification guidelines by Thursday. The framework under consideration includes provisions for clear labelling and certification of all diamonds.

 

The CCPA has invited input from various stakeholders, including the Central Board of Indirect Taxes and Customs (CBIC), the Department for Promotion of Industry and Internal Trade, the Gem and Jewellery Export Promotion Council (GJEPC), the Indian Diamond Institute, and the National Accreditation Board for Testing and Calibration Laboratories, among others.

 

“We have sought suggestions from all stakeholders before finalising the comprehensive guidelines. The deadline for submissions is November 28,” a senior official, aware of the development, said.

 

The CCPA is a regulatory body established under the Consumer Protection Act, 2019. It addresses issues related to consumer rights violations, unfair trade practices, and false or misleading advertisements that harm consumer and public interests. The CCPA is responsible for protecting and enforcing consumer rights and tackling unfair trade practices.

 

Amid growing debate and confusion between natural and laboratory (lab)-grown diamonds, the CCPA recognised customer concerns and held a meeting on November 18 to discuss the need for clearer guidelines in the diamond industry.

 

Natural diamonds are formed over millions of years, while lab-grown diamonds are created through synthetic processes but share identical properties with natural diamonds.

 

The lack of standardised terminology and inadequate disclosure practices in the diamond industry have led to consumer confusion and misleading practices, particularly in distinguishing between natural and lab-grown diamonds.

 

Through the introduction of guidelines, the CCPA aims to address these gaps by promoting standardised terminology, ensuring clearer disclosure, and enhancing transparency through explicit labelling and certification to differentiate natural diamonds from lab-grown ones.

 

The comprehensive guidelines will require: explicit labelling and certification of all diamonds, detailing their origin and production method; a ban on misleading terms such as ‘natural’ or ‘genuine’ for lab-grown diamonds; and the establishment of accreditation systems to regulate and standardise diamond testing labs, curbing the rise of unregulated entities.

 

This is not the first time the government has intervened to ensure transparency in the diamond sector.

 

The Bureau of Indian Standards IS 15766:2007 stipulates that the term ‘diamond’ must exclusively refer to natural diamonds. Synthetic diamonds cannot be labelled simply as ‘diamond’ and must be identified as ‘synthetic diamonds’, regardless of the production method or material used. Further, synthetic diamonds are prohibited from being graded alongside natural diamonds to maintain market clarity.

 

In October 2024, the CBIC introduced stricter requirements for lab-grown diamonds, mandating that these products specify their production methods, such as chemical vapour deposition, high-pressure high-temperature, or other processes.

 

The industry has agreed to use the term ‘diamond’ exclusively for natural diamonds. Industry bodies are also advocating for three distinct categories: ‘natural diamonds’, ‘synthetic diamonds’, and ‘lab-grown diamonds’. They argue that lab-grown diamonds, unlike synthetic diamonds, possess identical properties to natural diamonds, distinguishing them from synthetic alternatives.

 

“We suggested having lab-grown diamonds as a separate category, apart from natural diamonds and synthetic diamonds. Synthetic diamonds may include coloured diamonds and moissanite diamonds. So, ideally, there will be three categories,” said Vipul Shah, chairman of GJEPC.

 

Based on the feedback received, the CCPA plans to finalise a robust framework to ensure transparency, accountability, and consumer protection across the diamond industry.