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Federal Trade Commission Pt. 23 without disclosing, clearly and con- the disclosure that the product is not spicuously, in advertising, in pro- new. Examples of such disclosures in- motional literature, on invoices, and clude: on the product’s packaging that the (1) Disclosure of the identity of the item is an industry product. Addition- rebuilder: ‘‘Rebuilt by John Doe Co.’’ ally, it is unfair or deceptive to offer (2) Disclosure that the industry prod- for sale or to sell any industry product uct was rebuilt by an independent re- that appears new or unused without builder: ‘‘Rebuilt by an Independent disclosing on the product itself that it Rebuilder.’’ is an industry product, using appro- (3) Disclosure that the industry prod- priate descriptive terms with sufficient uct was rebuilt by someone other than permanency to remain visible for a rea- the manufacturer identified: ‘‘Rebuilt sonable time after installation. Exam- by other than XYZ Motors.’’ ples of appropriate descriptive terms (4) Disclosure that the industry prod- include, but are not limited to ‘‘Used,’’ uct was rebuilt for the identified manu- ‘‘Secondhand,’’ ‘‘Repaired,’’ ‘‘Relined,’’ facturer: ‘‘Rebuilt for XYZ Motors.’’ ‘‘Reconditioned,’’ ‘‘Rebuilt,’’ or ‘‘Re- manufactured.’’ If the term ‘‘recycled’’ § 20.3 Misrepresentation of the terms ‘‘rebuilt,’’ ‘‘factory rebuilt,’’ ‘‘re- is used, it should be used in a manner manufactured,’’ etc. consistent with the requirements for that term set forth in the Guides for (a) It is unfair or deceptive to use the the Use of Environmental Marketing word ‘‘Rebuilt,’’ or any word of similar Claims, 16 CFR 260.7(e). On invoices to import, to describe an industry product the trade only, the disclosure may be which, since it was last subjected to by use of any number, mark, or other any use, has not been dismantled and symbol that is clearly understood by reconstructed as necessary, all of its industry members as meaning that the internal and external parts cleaned and part so marked on the invoices is not made rust and corrosion free, all im- new. paired, defective or substantially worn (c) It is unfair or deceptive to place parts restored to a sound condition or any means or instrumentality in the replaced with new, rebuilt (in accord hands of others so that they may mis- with the provisions of this paragraph) lead consumers as to the previous use or unimpaired used parts, all missing of industry products. parts replaced with new, rebuilt or unimpaired used parts, and such re- § 20.2 Deception as to the identity of a winding or machining and other oper- rebuilder, remanufacturer, recondi- ations performed as are necessary to tioner, reliner, or other reworker. put the industry product in sound (a) It is unfair or deceptive to mis- working condition. represent the identity of the rebuilder, (b) It is unfair or deceptive to rep- remanufacturer, reconditioner, reliner resent an industry product as ‘‘Re- or other reworker of an industry prod- manufactured’’ or ‘‘Factory Rebuilt’’ uct. unless the product was rebuilt as de- (b) If the identity of the original scribed in paragraph (a) of this section manufacturer of an industry product, at a factory generally engaged in the or the identity of the manufacturer for rebuilding of such products. which the product was originally made, is revealed and the product was rebuilt, PART 23—GUIDES FOR THE JEW- remanufactured, reconditioned, re- ELRY, PRECIOUS METALS, AND lined, or otherwise reworked by some- PEWTER INDUSTRIES one else, it is unfair or deceptive to fail to disclose such fact wherever the Sec. original manufacturer is identified in 23.0 Scope and application. advertising or promotional literature 23.1 Deception (general). concerning the industry product, on 23.2 Misleading illustrations. 23.3 Misuse of the terms ‘‘hand-made,’’ the container in which the product is ‘‘hand-polished,’’ etc. packed, and on the product itself, in 23.4 Misrepresentation as to gold content. close conjunction with, and of the same 23.5 Misuse of the word ‘‘vermeil.’’ permanency and conspicuousness as, 23.6 Misrepresentation as to silver content. 155 VerDate Sep<11>2014 11:09 Apr 04, 2016 Jkt 238054 PO 00000 Frm 00165 Fmt 8010 Sfmt 8010 Q:\16\16V1.TXT 31 lpowell on DSK54DXVN1OFR with $$_JOB § 23.0 16 CFR Ch. I (1–1–16 Edition) 23.7 Misuse of the words ‘‘platinum,’’ ‘‘irid- guides also apply to all articles made ium,’’ ‘‘palladium,’’ ‘‘ruthenium,’’ ‘‘rho- from pewter. For the purposes of these dium,’’ and ‘‘osmium.’’ guides, all articles covered by these 23.8 Misrepresentation as to content of pew- guides are defined as ‘‘industry prod- ter. 23.9 Additional guidance for the use of qual- ucts.’’ ity marks. (b) These guides apply to persons, 23.10 Misuse of ‘‘corrosion proof,’’ ‘‘non- partnerships, or corporations, at every corrosive,’’ ‘‘corrosion resistant,’’ ‘‘rust level of the trade (including but not proof,’’ ‘‘rust resistant,’’ etc. limited to manufacturers, suppliers, 23.11 Definition and misuse of the word ‘‘di- and retailers) engaged in the business amond.’’ of offering for sale, selling, or distrib- 23.12 Misuse of the words ‘‘flawless,’’ ‘‘per- uting industry products. fect,’’ etc. 23.13 Disclosure of treatments to diamonds. NOTE TO PARAGRAPH (b): To prevent con- 23.14 Misuse of the term ‘‘blue white.’’ sumer deception, persons, partnerships, or 23.15 Misuse of the term ‘‘properly cut,’’ corporations in the business of appraising, etc. identifying, or grading industry products 23.16 Misuse of the words ‘‘brilliant’’ and should utilize the terminology and standards ‘‘full cut.’’ set forth in the guides. 23.17 Misrepresentation of weight and (c) These guides apply to claims and ‘‘total weight.’’ 23.18 Definitions of various pearls. representations about industry prod- 23.19 Misuse of the word ‘‘pearl.’’ ucts included in labeling, advertising, 23.20 Misuse of terms such as ‘‘cultured promotional materials, and all other pearl,’’ ‘‘seed pearl,’’ ‘‘Oriental pearl,’’ forms of marketing, whether asserted ‘‘natura,’’ ‘‘kultured,’’ ‘‘real,’’ ‘‘gem,’’ directly or by implication, through ‘‘synthetic,’’ and regional designations. words, symbols, emblems, logos, illus- 23.21 Misrepresentation as to cultured trations, depictions, product brand pearls. names, or through any other means. 23.22 Disclosure of treatment to gemstones. (d) These guides set forth the Federal 23.23 Misuse of the words ‘‘ruby,’’ ‘‘sap- phire,’’ ‘‘emerald,’’ ‘‘topaz,’’ ‘‘stone,’’ Trade Commission’s current thinking ‘‘birthstone,’’ ‘‘gemstone,’’ etc. about claims for jewelry and other ar- 23.24 Misuse of the words ‘‘real,’’ ‘‘genuine,’’ ticles made from precious metals and ‘‘natural,’’ ‘‘precious,’’ etc. pewter. The guides help marketers and 23.25 Misuse of the word ‘‘gem.’’ other industry members avoid making 23.26 Misuse of the words ‘‘flawless,’’ ‘‘per- claims that are unfair or deceptive fect,’’ etc. under Section 5 of the FTC Act, 15 APPENDIX TO PART 23—EXEMPTIONS RECOG- U.S.C. 45. They do not confer any NIZED IN THE ASSAY FOR QUALITY OF GOLD rights on any person and do not oper- ALLOY, GOLD FILLED, GOLD OVERLAY, ate to bind the FTC or the public. The ROLLED GOLD PLATE, SILVER, AND PLAT- INUM INDUSTRY PRODUCTS Commission, however, may take action under the FTC Act if a marketer or AUTHORITY: 15 U.S.C. 45, 46. other industry member makes a claim SOURCE: 61 FR 27212, May 30, 1996, unless inconsistent with the guides. In any otherwise noted. such enforcement action, the Commis- sion must prove that the challenged § 23.0 Scope and application. act or practice is unfair or deceptive in (a) These guides apply to jewelry in- violation of Section 5 of the FTC Act. dustry products, which include, but are (e) The guides consist of general prin- not limited to, the following: ciples, specific guidance on the use of gemstones and their laboratory-created particular claims for industry prod- and imitation substitutes; natural and ucts, and examples. Claims may raise cultured pearls and their imitations; issues that are addressed by more than and metallic watch bands not perma- one example and in more than one sec- nently attached to watches. These tion of the guides. The examples pro- guides also apply to articles, including vide the Commission’s views on how optical frames, pens and pencils, flat- reasonable consumers likely interpret ware, and hollowware, fabricated from certain claims. Industry members may precious metals (gold, silver and plat- use an alternative approach if the ap- inum group metals), precious metal al- proach satisfies the requirements of loys, and their imitations. These Section 5 of the FTC Act. Whether a 156 VerDate Sep<11>2014 11:09 Apr 04, 2016 Jkt 238054 PO 00000 Frm 00166 Fmt 8010 Sfmt 8010 Q:\16\16V1.TXT 31 lpowell on DSK54DXVN1OFR with $$_JOB 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.

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