16 CFR Part 23 II

Thursday May 30, 1996 Part V Federal Trade Commission 16 CFR Parts 19 and 23 Guides for the Metallic Watch Band Industry and the Jewelry Industry, Final Rules; and Guides for the Jewelry, Precious Metals, and Pewter Industries, Proposed Rule federal register 27177 27178 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Rules and Regulations FEDERAL TRADE COMMISSION published a Federal Register Notice Watch Band Guides, now consolidated (``FRN'') soliciting public comment on with the Jewelry Guides). amendments to the Guides on June 12, 16 CFR Part 23 II. Regulatory Review and Related 1992, in response to a petition from the Questions Guides for the Metallic Watch Band Jewelers Vigilance Committee, Inc. Industry and Guides for the Jewelry (``JVC'').1 The comment period, as As part of the Commission's ongoing Industry extended, ended on September 25, program to review all of its rules and 1992.2 guides periodically, the FRN included AGENCY: Federal Trade Commission. questions about the Guides' economic ACTION: Final guides. The FRN solicited comment on the 3 impact and continuing relevance, any JVC's proposal to revise the Guides. compliance burdens, changes needed to SUMMARY: The Federal Trade The FRN summarized the major minimize their economic impact, their Commission (``Commission'') amendments proposed by the JVC, as relation to other federal or state laws or announces that it has concluded a well as revisions that Commission staff regulations, and the effect of any review of its Guides for the Metallic was proposing. In addition to requesting changed conditions since the Guides Watch Band Industry (``Watch Band comment on the proposed revisions were issued. The Commission also Guides'') and Guides for the Jewelry generally, the FRN asked for comment solicited comment on general issues Industry (``Jewelry Guides''). The on 34 questions. regarding the Guides, such as whether Commission rescinds the Watch Band The Commission received 263 the JVC's proposed provisions Guides in a document published comments. In the remainder of this accurately reflect accepted practices, elsewhere in this issue of the Federal notice, the comments are cited to by an technology or nomenclature used in the Register. The Commission is abbreviation of the commenter's name trade; whether proposed changes would consolidating certain provisions of the and the document number assigned to result in a lessening of competition or Watch Band Guides with the Jewelry the comment on the public record. A list increased prices; and whether the JVC's Guides. The Commission is renaming of the commenters, including the petition to revise should be rejected and the Guides for the Jewelry Industry the abbreviations and document numbers the current Guides retained. Because Guides for the Jewelry, Precious Metals used to identify each commenter, is these questions concern fundamental and Pewter Industries. The Commission attached as an Appendix.4 issues about whether the Guides should also revises the Jewelry Guides by The revisions are discussed section- be retained, deleted or revised, the defining the scope and application of by-section by category.5 Below, Part II Commission addresses them first. the Guides and adding new provisions addresses the standard regulatory regarding the use of the terms ``vermeil'' A. Summary of the Comments review questions that were included in and ``pewter.'' The Commission is also All but one of the 37 comments the FRN. Part III discusses general making substantive changes to the specifically addressing the economic issues regarding the proposed revisions existing provisions of the Jewelry impact of the Guides stated that any to the Guides. Part IV analyzes the Guides, as discussed in detail herein. compliance costs are far outweighed by proposed revisions to the Jewelry The Commission is not making any the benefits to the industry and to Guides section-by-section (including the changes to the provisions regarding the consumers.6 None of the comments use of the word ``platinum'' at this time provided any figures or estimates of the and will request additional comment on 1 57 FR 24996 (June 12, 1992). The JVC, located monetary costs incurred in complying at 401 East 34th Street, NY, NY 10016, is a trade possible revisions to this section in a association that was formed in 1912 to promote with the Guides. separate Federal Register notice. ethical practices in the jewelry industry. Its initial Thirty-eight comments specifically EFFECTIVE DATE: May 30, 1996. petition is dated April 15, 1986; additional addressed the continuing need for the proposed revisions were submitted on February 20, Guides and all agreed that there is a ADDRESSES: Requests for copies of this 1989. continuing need, with most stating that 2 document should be sent to the Public 57 FR 34532 (Aug. 5, 1992). the Guides protect consumers and 3 Because of its 71-page length, the JVC proposal Reference Branch, Room 130, Federal industry.7 One comment stated, Trade Commission, Washington, DC was not published. But, the proposal, and a document showing how the current Guides would 20580. be changed by the JVC proposal, was placed on the 6 E.g., Fasnacht (4) p.1 (the Guides have a positive FOR FURTHER INFORMATION CONTACT: public record for inspection and is available in the economic impact by creating a level playing field); Constance M. Vecellio, Attorney, 202± Public Reference Room of the Commission. Schwartz (52) (the Guides have a positive impact 4 In summary, the comments are from 19 trade on the industry by establishing standards that offer 326±2966, or Laura J. DeMartino, associations, 85 diamond dealers, 53 colored stone consumers protection without undue cost); JMC (1); Attorney, 202±326±3030, Division of dealers, 37 retail jewelers, 10 synthetic gemstone Thorpe (7); King (11); Gold Institute (13); Honora Enforcement, Federal Trade manufacturers, 12 pewter manufacturers, 10 watch (15); Argo (17); AGS (18); AGTA (49); Estate (23); Commission, Washington, DC 20580. manufacturers, 9 general manufacturers, 5 G&B (30); Jabel (47); Skalet (61); Handy (62); gemologist/appraisers, 7 precious metals firms, 3 Lannyte (65); Newhouse (76); GIA (81); Nowlin SUPPLEMENTARY INFORMATION: catalog houses, 2 manufacturer representatives, 2 (109); McGee (112); ArtCarved (155); Bales (156); writing implement manufacturers, 3 pearl dealers, Bridge (163); LaPrad (181); IJA (192); CPAA (193); I. Introduction and one each from: The Canadian Government, the Mark (207); Canada (209); Bedford (210); JVC (212); U.S. Postal Service, the National Association of Matthey (213); Bruce (218); Service (222); MJSA The Commission revises the Guides Consumer Agency Administrators, a scientist who (226); Preston (229); Timex (239); and Sheaffer for the Jewelry Industry and the Guides works with laser technology and crystal growth, an (249). for the Metallic Watch Band Industry economics professor, an importer, a retired trade Service (222) agreed with regard to the current (``Guides''), 16 CFR Parts 23 and 19, association executive, and an editor of Jewelers Guides, but thought that the compliance costs Circular-Keystone, and a trade magazine. associated with the proposed revisions outweighed respectively, as described in detail 5 Various sections of the Guides that pertain to the benefits. below. The Commission will announce particular subject areas are referred to as 7 The commenters are the same as in footnote 6 the results of its review of the Guides for ``categories,'' in the Appendix to the current supra, with the addition of Eisen (91). With regard the Watch Industry, 16 CFR Part 245, Guides, i.e., Category I: Jewelry industry products to the current Guides, Best (225) stated, at p.2, that in general; Category II: precious metals; Category III: the Guides ``are well developed and provide which was conducted at the same time diamonds, genuine and imitation; Category IV: protection to consumers and to reputable jewelers as the review of the other Guides, in a pearls, genuine, cultured and imitation; Category V: against otherwise false and deceptive practices. The separate notice. The Commission gemstones, genuine, synthetic and imitation. Guides offer a great measure of certainty to jewelers' Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Rules and Regulations 27179 ``Without the guides to serve as a effect on entities subject to the Guides' filling of diamonds,26 new methods of reference manual, every manufacturer or requirements, reduce costs and promote metal plating,27 diffusion-treated producer would have their own international trade, by not requiring sapphires,28 advanced testing interpretation [of what constitutes fair manufacturers to mark products for techniques,29 new synthetic industry practices].'' 8 domestic use differently than those gemstones,30 and possible new platinum Twenty-nine comments specifically made for foreign use.17 products.31 addressed the burdens of complying Twenty-seven comments addressed On the economic side, Richard C. with the Guides. Seven comments stated the relation of the Guides to federal, Mark commented on the dramatic there are no compliance burdens.9 state or local laws or regulations. increase in the price of gold since the Three also stated that, if everyone Twenty-one comments specifically Guides were most recently revised, complies, the burdens of compliance are stated either that there is no conflict or which, he stated, increases the evenly distributed and will not benefit overlapping or that they are unaware of significance

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