Federal Trade Commission § 23.4

particular claim is deceptive will de- mislead consumers, unless a disclosure is pend on the net impression of the ad- made about the item’s true size. vertisement, label, or other pro- motional material at issue. In addition, § 23.3 Misuse of the terms ‘‘hand- although many examples present spe- made,’’ ‘‘hand-polished,’’ etc. cific claims and options for qualifying (a) It is unfair or deceptive to rep- claims, the examples do not illustrate resent, directly or by implication, that all permissible claims or qualifications any industry product is hand-made or under Section 5 of the FTC Act. hand-wrought unless the entire shaping and forming of such product from raw [61 FR 27212, May 30, 1996, as amended at 64 materials and its finishing and decora- FR 33194, June 22, 1999; 75 FR 81453, Dec. 28, 2010] tion were accomplished by hand labor and manually-controlled methods § 23.1 Deception (general). which permit the maker to control and vary the construction, shape, design, It is unfair or deceptive to misrepre- and finish of each part of each indi- sent the type, kind, grade, quality, vidual product. quantity, metallic content, size, weight, cut, color, character, treat- NOTE TO PARAGRAPH (a): As used herein, ment, substance, durability, service- ‘‘raw materials’’ include bulk sheet, strip, ability, origin, price, value, prepara- wire, and similar items that have not been tion, production, manufacture, dis- cut, shaped, or formed into jewelry parts, semi-finished parts, or blanks. tribution, or any other material aspect of an industry product. (b) It is unfair or deceptive to rep- resent, directly or by implication, that NOTE 1 TO § 23.1: If, in the sale or offering for sale of an industry product, any represen- any industry product is hand-forged, tation is made as to the grade assigned the hand-engraved, hand-finished, or hand- product, the identity of the grading system polished, or has been otherwise hand- used should be disclosed. processed, unless the operation de- NOTE 2 TO § 23.1: To prevent deception, any scribed was accomplished by hand qualifications or disclosures, such as those labor and manually-controlled methods described in the guides, should be suffi- which permit the maker to control and ciently clear and prominent. Clarity of lan- vary the type, amount, and effect of guage, relative type size and proximity to such operation on each part of each in- the claim being qualified, and an absence of contrary claims that could undercut effec- dividual product. tiveness, will maximize the likelihood that the qualifications and disclosures are appro- § 23.4 Misrepresentation as to gold priately clear and prominent. content. (a) It is unfair or deceptive to mis- § 23.2 Misleading illustrations. represent the presence of gold or gold It is unfair or deceptive to use, as alloy in an industry product, or the part of any advertisement, packaging quantity or karat fineness of gold or material, label, or other sales pro- gold alloy contained in the product, or motion matter, any visual representa- the karat fineness, thickness, weight tion, picture, televised or computer ratio, or manner of application of any image, illustration, diagram, or other gold or gold alloy plating, covering, or depiction which, either alone or in con- coating on any surface of an industry junction with any accompanying words product or part thereof. or phrases, misrepresents the type, (b) The following are examples of kind, grade, quality, quantity, metallic markings or descriptions that may be content, size, weight, cut, color, char- misleading: 2 acter, treatment, substance, dura- (1) Use of the word ‘‘Gold’’ or any ab- bility, serviceability, origin, prepara- breviation, without qualification, to tion, production, manufacture, dis- describe all or part of an industry prod- tribution, or any other material aspect uct, which is not composed throughout of an industry product. of fine (24 karat) gold.

NOTE TO § 23.2: An illustration or depiction of a diamond or other gemstone that por- 2 See § 23.4(c) for examples of acceptable trays it in greater than its actual size may markings and descriptions.

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(2) Use of the word ‘‘Gold’’ or any ab- tent of surface coverage that reason- breviation to describe all or part of an able durability is assured. industry product composed throughout (8) Use of any name, terminology, or of an alloy of gold, unless a correct des- other term to misrepresent that an in- ignation of the karat fineness of the dustry product is equal or superior to, alloy immediately precedes the word or different than, a known and estab- ‘‘Gold’’ or its abbreviation, and such lished type of industry product with fineness designation is of at least equal reference to its gold content or method conspicuousness. of manufacture. (3) Use of the word ‘‘Gold’’ or any ab- (9) Use of the word ‘‘Gold’’ or any ab- breviation to describe all or part of an breviation, or of a quality mark imply- industry product that is not composed ing gold content (e.g., 9 karat), to de- throughout of gold or a gold alloy, but scribe all or part of an industry prod- is surface-plated or coated with gold uct that is composed throughout of an alloy, unless the word ‘‘Gold’’ or its ab- alloy of gold of less than 10 karat breviation is adequately qualified to fineness. indicate that the product or part is only surface-plated. NOTE TO PARAGRAPH (b) § 23.4: The provi- (4) Use of the term ‘‘Gold Plate,’’ sions regarding the use of the word ‘‘Gold,’’ or ‘‘Gold Plated,’’ or any abbreviation to any abbreviation, as described above, are ap- describe all or part of an industry prod- plicable to ‘‘Duragold,’’ ‘‘Diragold,’’ ‘‘Noblegold,’’ ‘‘Goldine,’’ ‘‘Layered Gold,’’ or uct unless such product or part con- any words or terms of similar meaning. tains a surface-plating of gold alloy, applied by any process, which is of such (c) The following are examples of thickness and extent of surface cov- markings and descriptions that are erage that reasonable durability is as- consistent with the principles de- sured. scribed above: (5) Use of the terms ‘‘Gold Filled,’’ (1) An industry product or part there- ‘‘Rolled Gold Plate,’’ ‘‘Rolled Gold Plat- of, composed throughout of an alloy of ed,’’ ‘‘Gold Overlay,’’ or any abbrevia- gold of not less than 10 karat fineness, tion to describe all or part of an indus- may be marked and described as ‘‘Gold’’ try product unless such product or part when such word ‘‘Gold,’’ wherever ap- contains a surface-plating of gold alloy pearing, is immediately preceded by a applied by a mechanical process and of correct designation of the karat such thickness and extent of surface fineness of the alloy, and such karat coverage that reasonable durability is designation is of equal conspicuousness assured, and unless the term is imme- as the word ‘‘Gold’’ (for example, ‘‘14 diately preceded by a correct designa- Karat Gold,’’ ‘‘14 K. Gold,’’ or ‘‘14 Kt. tion of the karat fineness of the alloy Gold’’). Such product may also be that is of at least equal conspicuous- marked and described by a designation ness as the term used. of the karat fineness of the gold alloy (6) Use of the terms ‘‘Gold Plate,’’ unaccompanied by the word ‘‘Gold’’ (for ‘‘Gold Plated,’’ ‘‘Gold Filled,’’ ‘‘Rolled example, ‘‘14 Karat,’’ ‘‘14 Kt.,’’ or ‘‘14 K.’’). Gold Plate,’’ ‘‘Rolled Gold Plated,’’ ‘‘Gold Overlay,’’ or any abbreviation to NOTE TO PARAGRAPH (c)(1): Use of the term describe a product in which the layer of ‘‘Gold’’ or any abbreviation to describe all or part of a product that is composed through- gold plating has been covered with a out of gold alloy, but contains a hollow cen- base metal (such as nickel), which is ter or interior, may mislead consumers, un- covered with a thin wash of gold, un- less the fact that the product contains a hol- less there is a disclosure that the pri- low center is disclosed in immediate prox- mary gold coating is covered with a imity to the term ‘‘Gold’’ or its abbreviation base metal, which is gold washed. (for example, ‘‘14 Karat Gold-Hollow Center,’’ (7) Use of the term ‘‘Gold Electro- or ‘‘14 K. Gold Tubing,’’ when of a gold alloy plate,’’ ‘‘Gold Electroplated,’’ or any ab- tubing of such karat fineness). Such products breviation to describe all or part of an should not be marked or described as ‘‘solid’’ or as being solidly of gold or of a gold alloy. industry product unless such product For example, when the composition of such a or part is electroplated with gold or a product is 14 karat gold alloy, it should not gold alloy and such electroplating is of be described or marked as either ‘‘14 Kt. such karat fineness, thickness, and ex- Solid Gold’’ or as ‘‘Solid 14 Kt. Gold.’’

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(2) An industry product or part there- Overlay,’’ or ‘‘14K. R.G.P.’’). When con- of, on which there has been affixed on forming to all such requirements ex- all significant surfaces, by any process, cept the specified minimum of 1⁄20th of a coating, electroplating, or deposition the weight of the metal in the entire by any means, of gold or gold alloy of article, the terms ‘‘Gold Overlay’’ and not less than 10 karat fineness that is ‘‘Rolled Gold Plate’’ may be used when 3 of substantial thickness, and the min- the karat fineness designation is im- imum thickness throughout of which is mediately preceded by a fraction accu- equivalent to one-half micron (or ap- rately disclosing the portion of the proximately 20 millionths of an inch) of weight of the metal in the entire arti- fine gold, 4 may be marked or described cle accounted for by the plating, and as ‘‘Gold Plate’’ or ‘‘Gold Plated,’’ or ab- breviated, as, for example, G.P. The when such fraction is of equal con- exact thickness of the plate may be spicuousness as the term used (for ex- marked on the item, if it is imme- ample, ‘‘1⁄40th 12 Kt. Rolled Gold Plate’’ diately followed by a designation of the or ‘‘1⁄40 12 Kt. R.G.P.’’). karat fineness of the plating which is (4) An industry product or part there- of equal conspicuousness as the term of, on which there has been affixed on used (as, for example, ‘‘2 microns 12 K. all significant surfaces by an electro- gold plate’’ or ‘‘2μ 12 K. G.P.’’ for an lytic process, an electroplating of gold, item plated with 2 microns of 12 karat or of a gold alloy of not less than 10 gold.) karat fineness, which has a minimum

NOTE TO PARAGRAPH (c)(2): If an industry thickness throughout equivalent to .175 7 product has a thicker coating or electro- microns (approximately /1,000,000ths of plating of gold or gold alloy on some areas an inch) of fine gold, may be marked or than others, the minimum thickness of the described as ‘‘Gold Electroplate’’ or plate should be marked. ‘‘Gold Electroplated,’’ or abbreviated, (3) An industry product or part there- as, for example, ‘‘G.E.P.’’ When the elec- of on which there has been affixed on troplating meets the minimum all significant surfaces by soldering, fineness but not the minimum thick- brazing, welding, or other mechanical ness specified above, the marking or means, a plating of gold alloy of not description may be ‘‘Gold Flashed’’ or less than 10 karat fineness and of sub- ‘‘Gold Washed.’’ When the electro- stantial thickness 5 may be marked or plating is of the minimum fineness described as ‘‘Gold Filled,’’ ‘‘Gold Over- specified above and of a minimum lay,’’ ‘‘Rolled Gold Plate,’’ or an ade- thickness throughout equivalent to quate abbreviation, when such plating two and one half (21⁄2) microns (or ap- 1 constitutes at least ⁄20th of the weight 100 proximately /1,000,000ths of an inch) of of the metal in the entire article and fine gold, the marking or description when the term is immediately preceded may be ‘‘Heavy Gold Electroplate’’ or by a designation of the karat fineness ‘‘Heavy Gold Electroplated.’’ When of the plating which is of equal con- electroplatings qualify for the term spicuousness as the term used (for ex- Gold Electroplate (or Gold Electro- ample, ‘‘14 Karat Gold Filled,’’ ‘‘14 Kt. ‘‘ ’’ ‘‘ Gold Filled,’’ ‘‘14 Kt. G.F.,’’ ‘‘14 Kt. Gold plated’’), or the term ‘‘Heavy Gold Elec- troplate’’ (or ‘‘Heavy Gold Electro- plated ), and have been applied by use 3 The term substantial thickness means that ’’ all areas of the plating are of such thickness of a particular kind of electrolytic as to assure a durable coverage of the base process, the marking may be accom- metal to which it has been affixed. Since in- panied by identification of the process dustry products include items having sur- used, as for example, ‘‘Gold Electro- faces and parts of surfaces that are subject plated (X Process)’’ or ‘‘Heavy Gold to different degrees of wear, the thickness of plating for all items or for different areas of Electroplated (Y Process).’’ the surface of individual items does not nec- (d) The provisions of this section re- essarily have to be uniform. lating to markings and descriptions of 4 A product containing 1 micron (otherwise industry products and parts thereof are known as 1μ) of 12 karat gold is equivalent to subject to the applicable tolerances of one-half micron of 24 karat gold. 5 See footnote 3.

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the National Stamping Act or any (c) It is unfair or deceptive to mark, amendment thereof. 6 describe, or otherwise represent all or part of an industry product as coin or NOTE 4 TO PARAGRAPH (d): Exemptions rec- ‘‘ ’’ ognized in the assay of karat gold industry ‘‘coin silver’’ unless it is at least 900/ products and in the assay of gold filled, gold 1,000ths pure silver. overlay, and rolled gold plate industry prod- (d) It is unfair or deceptive to mark, ucts, and not to be considered in any assay describe, or otherwise represent all or for quality, are listed in the appendix. part of an industry product as being § 23.5 Misuse of the word ‘‘vermeil.’’ plated or coated with silver unless all significant surfaces of the product or (a) It is unfair or deceptive to rep- part contain a plating or coating of sil- resent, directly or by implication, that ver that is of substantial thickness. 8 an industry product is ‘‘vermeil’’ if such mark or description misrepresents the (e) The provisions of this section re- product’s true composition. lating to markings and descriptions of (b) An industry product may be de- industry products and parts thereof are scribed or marked as ‘‘vermeil’’ if it subject to the applicable tolerances of consists of a base of sterling silver the National Stamping Act or any coated or plated on all significant sur- amendment thereof. 9 faces with gold, or gold alloy of not NOTE 1 TO § 23.6: The National Stamping less than 10 karat fineness, that is of Act provides that silverplated articles shall substantial thickness 7 and a minimum not ‘‘be stamped, branded, engraved or im- thickness throughout equivalent to printed with the word ‘sterling’ or the word two and one half (21⁄2) microns (or ap- ‘coin,’ either alone or in conjunction with 100 proximately /1,000,000ths of an inch) of other words or marks.’’ 15 U.S.C. 297(a). fine gold. NOTE 2 TO § 23.6: Exemptions recognized in the assay of silver industry products are list- NOTE 1 TO § 23.5: It is unfair or deceptive to ed in the appendix. use the term ‘‘vermeil’’ to describe a product in which the sterling silver has been covered § 23.7 Misuse of the words ‘‘platinum,’’ with a base metal (such as nickel) plated ‘‘iridium,’’ ‘‘palladium,’’ ‘‘ruthenium,’’ with gold unless there is a disclosure that ‘‘rhodium,’’ and ‘‘osmium.’’ the sterling silver is covered with a base metal that is plated with gold. (a) It is unfair or deceptive to use the NOTE 2 TO § 23.5: Exemptions recognized in words ‘‘platinum,’’ ‘‘iridium,’’ ‘‘palla- the assay of gold filled, gold overlay, and dium,’’ ‘‘ruthenium,’’ ‘‘rhodium,’’ and rolled gold plate industry products are listed in the appendix. ‘‘osmium,’’ or any abbreviation to mark or describe all or part of an industry § 23.6 Misrepresentation as to silver product if such marking or description content. misrepresents the product’s true com- (a) It is unfair or deceptive to mis- position. The Platinum Group Metals represent that an industry product (PGM) are Platinum, Iridium, Palla- contains silver, or to misrepresent an dium, Ruthenium, Rhodium, and Os- industry product as having a silver mium. content, plating, electroplating, or (b) The following are examples of coating. markings or descriptions that may be (b) It is unfair or deceptive to mark, misleading: 10 describe, or otherwise represent all or (1) Use of the word ‘‘Platinum’’ or any part of an industry product as ‘‘silver,’’ abbreviation, without qualification, to ‘‘solid silver,’’ ‘‘Sterling Silver,’’ ‘‘Ster- ling,’’ or the abbreviation ‘‘Ster.’’ unless 8 See footnote 3. 925 it is at least /1,000ths pure silver. 9 Under the National Stamping Act, ster- ling silver articles or parts that contain no 6 Under the National Stamping Act, arti- solder have a permissible tolerance of four cles or parts made of gold or of gold alloy parts per thousand. If the part tested con- that contain no solder have a permissible tains solder, the permissible tolerance is ten tolerance of three parts per thousand. If the parts per thousand. For full text, see 15 part tested contains solder, the permissible U.S.C. 294, et seq. tolerance is seven parts per thousand. For 10 See paragraph (c) of this section for ex- full text, see 15 U.S.C. 295, et seq. amples of acceptable markings and descrip- 7 See footnote 3. tions.

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