148 Part 23—Guides for the Jew- Elry, Precious Metals

§ 20.2 16 CFR Ch. I (1–1–12 Edition)

product itself with sufficient perma- (2) Disclosure that the product was nency to remain visible for a reason- rebuilt by an independent rebuilder: able period of time after installation. Rebuilt by an Independent Rebuilder. Examples of appropriate descriptive terms include, but are not limited to (3) Disclosure that the product was ‘‘Used,’’ ‘‘Secondhand,’’ ‘‘Repaired,’’ rebuilt by someone other than the ‘‘Remanufactured,’’ ‘‘Reconditioned,’’ manufacturer so identified: ‘‘Rebuilt,’’ or ‘‘Relined.’’ 1 On invoices Rebuilt by other than XYZ Motors. to the trade only, the disclosure may (4) Disclosure that the product was be made by use of any number, mark, rebuilt for the identified manufacturer, or other symbol that is clearly under- if such is the case: stood by industry members as meaning that the products or parts identified on Rebuilt for XYZ Motors. the invoices have been used. [67 FR 9922, Mar. 5, 2002] (c) It is unfair or deceptive to place any means or instrumentality in the § 20.3 Misrepresentation of the terms hands of others so that they may mis- ‘‘rebuilt,’’ ‘‘factory rebuilt,’’ ‘‘remanufactured,’’ etc. lead consumers as to the previous use of industry products or parts. (a) It is unfair or deceptive to use the words ‘‘Rebuilt,’’ ‘‘Remanufactured,’’ [67 FR 9922, Mar. 5, 2002] or words of similar import, to describe an industry product which, since it was § 20.2 Deception as to identity of re- last subjected to any use, has not been builder, remanufacturer, recondi- dismantled and reconstructed as nec- tioner or reliner. essary, all of its internal and external (a) It is unfair or deceptive to mis- parts cleaned and made rust and corro- represent the identity of the rebuilder, sion free, all impaired, defective or remanufacturer, reconditioner or substantially worn parts restored to a reliner of an industry product. sound condition or replaced with new, (b) In connection with the sale or of- rebuilt (in accord with the provisions fering for sale of an industry product, of this paragraph) or unimpaired used if the identity of the original manufac- parts, all missing parts replaced with turer of the product, or the identity of new, rebuilt or unimpaired used parts, the manufacturer for which the prod- and such rewinding or machining and uct was originally made, is revealed other operations performed as are nec- and the product was rebuilt, remanu- essary to put the industry product in factured, reconditioned or relined by sound working condition. someone else, it is unfair or deceptive (b) It is unfair or deceptive to rep- to fail to disclose such fact wherever resent an industry product as ‘‘Factory the original manufacturer is identified Rebuilt’’ unless the product was rebuilt in advertising and sales promotional as described in paragraph (a) of this literature concerning the product, on section at a factory generally engaged the container in which the product is in the rebuilding of such products. (See packed, and on the product, in close also § 20.2.) conjunction with, and of the same per- [67 FR 9922, Mar. 5, 2002] manency and conspicuousness as, the disclosure of previous use of the prod- PART 23—GUIDES FOR THE JEW- uct described by this section. Examples ELRY, PRECIOUS METALS, AND of such disclosures include: (1) Disclosure of the identity of the PEWTER INDUSTRIES rebuilder: Sec. Rebuilt by John Doe Co. 23.0 Scope and application. 23.1 Deception (general). 23.2 Misleading illustrations. 1 If the term ‘‘recycled’’ is used, it should 23.3 Misuse of the terms ‘‘hand-made,’’ be used in a manner consistent with the re- ‘‘hand-polished,’’ etc. quirements for that term set forth in the 23.4 Misrepresentation as to gold content. Guides for the Use of Environmental Mar- 23.5 Misuse of the word ‘‘vermeil.’’ keting Claims, 16 CFR 260.7(e). 23.6 Misrepresentation as to silver content.

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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,’’ ‘‘sapphire,’’ ‘‘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

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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 promotional 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 represent, 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- and extent of surface coverage that breviation to describe all or part of an reasonable 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 abbreviation 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 abbreviation is adequately qualified to alloy of gold of less than 10 karat indicate that the product or part is fineness. 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,’’ ‘‘Gold Plated,’’ or any abbreviation to or any abbreviation, as described above, are describe all or part of an industry prod- applicable to ‘‘Duragold,’’ ‘‘Diragold,’’ uct unless such product or part con- ‘‘Noblegold,’’ ‘‘Goldine,’’ ‘‘Layered Gold,’’ or tains a surface-plating of gold alloy, any words or terms of similar meaning. 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 of, composed throughout of an alloy of Plated,’’ ‘‘Gold Overlay,’’ or any abbre- gold of not less than 10 karat fineness, viation to describe all or part of an in- may be marked and described as dustry product unless such product or ‘‘Gold’’ when such word ‘‘Gold,’’ wher- part contains a surface-plating of gold ever appearing, is immediately pre- alloy applied by a mechanical process ceded by a correct designation of the and of such thickness and extent of karat fineness of the alloy, and such surface coverage that reasonable dura- karat designation is of equal conspicu- bility is assured, and unless the term is ousness as the word ‘‘Gold’’ (for exam- immediately preceded by a correct designation of the karat fineness of the ple, ‘‘14 Karat Gold,’’ ‘‘14 K. Gold,’’ or alloy that is of at least equal conspicu- ‘‘14 Kt. Gold’’). Such product may also ousness as the term used. be marked and described by a designa- (6) Use of the terms ‘‘Gold Plate,’’ tion of the karat fineness of the gold ‘‘Gold Plated,’’ ‘‘Gold Filled,’’ ‘‘Rolled alloy unaccompanied by the word Gold Plate,’’ ‘‘Rolled Gold Plated,’’ ‘‘Gold’’ (for example, ‘‘14 Karat,’’ ‘‘14 ‘‘Gold Overlay,’’ or any abbreviation to Kt.,’’ or ‘‘14 K.’’). describe a product in which the layer of NOTE TO PARAGRAPH (c)(1): Use of the term gold plating has been covered with a ‘‘Gold’’ or any abbreviation to describe all or base metal (such as nickel), which is part of a product that is composed through- covered with a thin wash of gold, un- out of gold alloy, but contains a hollow cen- less there is a disclosure that the pri- ter or interior, may mislead consumers, un- mary gold coating is covered with a less the fact that the product contains a hol- base metal, which is gold washed. low center is disclosed in immediate prox- (7) Use of the term ‘‘Gold Electro- imity to the term ‘‘Gold’’ or its abbreviation plate,’’ ‘‘Gold Electroplated,’’ or any (for example, ‘‘14 Karat Gold-Hollow Cen- ter,’’ or ‘‘14 K. Gold Tubing,’’ when of a gold abbreviation to describe all or part of alloy tubing of such karat fineness). Such an industry product unless such prod- products should not be marked or described uct or part is electroplated with gold as ‘‘solid’’ or as being solidly of gold or of a or a gold alloy and such electroplating gold alloy. For example, when the composi- is of such karat fineness, thickness, tion of such a product is 14 karat gold alloy,

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it should not be described or marked as ei- spicuousness as the term used (for ex- ther ‘‘14 Kt. Solid Gold’’ or as ‘‘Solid 14 Kt. ample, ‘‘14 Karat Gold Filled,’’ ‘‘14 Kt. Gold.’’ Gold Filled,’’ ‘‘14 Kt. G.F.,’’ ‘‘14 Kt. (2) An industry product or part there- Gold Overlay,’’ or ‘‘14K. R.G.P.’’). When of, on which there has been affixed on conforming to all such requirements all significant surfaces, by any process, except the specified minimum of 1⁄20th a coating, electroplating, or deposition of 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 of substantial thickness, 3 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- 4 fine gold, may be marked or described cle accounted for by the plating, and as ‘‘Gold Plate’’ or ‘‘Gold Plated,’’ or when such fraction is of equal con- abbreviated, as, for example, G.P. The spicuousness as the term used (for ex- exact thickness of the plate may be ample, ‘‘1⁄40th 12 Kt. Rolled Gold Plate’’ marked on the item, if it is imme- or ‘‘1⁄40 12 Kt. R.G.P.’’). diately followed by a designation of the karat fineness of the plating which is (4) An industry product or part thereof 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 thickness throughout equivalent to .175 NOTE TO PARAGRAPH (c)(2): If an industry 7 microns (approximately /1,000,000ths of product has a thicker coating or electro- an inch) of fine gold, may be marked or plating of gold or gold alloy on some areas than others, the minimum thickness of the described as ‘‘Gold Electroplate’’ or plate should be marked. ‘‘Gold Electroplated,’’ or abbreviated, as, for example, ‘‘G.E.P.’’ When the (3) An industry product or part there- electroplating meets the minimum of on which there has been affixed on fineness but not the minimum thick- all significant surfaces by soldering, ness specified above, the marking or brazing, welding, or other mechanical description may be ‘‘Gold Flashed’’ or means, a plating of gold alloy of not ‘‘Gold Washed.’’ When the electro- less than 10 karat fineness and of sub- plating is of the minimum fineness 5 stantial thickness may be marked or specified above and of a minimum described as ‘‘Gold Filled,’’ ‘‘Gold Over- thickness throughout equivalent to lay,’’ ‘‘Rolled Gold Plate,’’ or an ade- two and one half (21⁄2) microns (or ap- quate abbreviation, when such plating 100 proximately /1,000,000ths of an inch) of constitutes at least 1⁄20th of the weight fine gold, the marking or description of the metal in the entire article and may be ‘‘Heavy Gold Electroplate’’ or when the term is immediately preceded ‘‘Heavy Gold Electroplated.’’ When by a designation of the karat fineness electroplatings qualify for the term of the plating which is of equal con- ‘‘Gold Electroplate’’ (or ‘‘Gold Electro- plated’’), or the term ‘‘Heavy Gold 3 The term substantial thickness means that Electroplate’’ (or ‘‘Heavy Gold Electro- all areas of the plating are of such thickness as to assure a durable coverage of the base plated’’), and have been applied by use metal to which it has been affixed. Since in- of a particular kind of electrolytic dustry products include items having sur- process, the marking may be accom- faces and parts of surfaces that are subject panied by identification of the process to different degrees of wear, the thickness of used, as for example, ‘‘Gold Electro- plating for all items or for different areas of plated (X Process)’’ or ‘‘Heavy Gold the surface of individual items does not nec- Electroplated (Y Process).’’ essarily have to be uniform. 4 A product containing 1 micron (otherwise (d) The provisions of this section re- known as 1μ) of 12 karat gold is equivalent to lating to markings and descriptions of one-half micron of 24 karat gold. industry products and parts thereof are 5 See footnote 3. subject to the applicable tolerances of

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925 the National Stamping Act or any unless it is at least /1,000ths pure sil- amendment thereof. 6 ver. (c) It is unfair or deceptive to mark, NOTE 4 TO PARAGRAPH (d): Exemptions recognized in the assay of karat gold industry describe, or otherwise represent all or products and in the assay of gold filled, gold part of an industry product as ‘‘coin’’ overlay, and rolled gold plate industry prod- or ‘‘coin silver’’ unless it is at least 900/ ucts, and not to be considered in any assay 1,000ths pure silver. for quality, are listed in the appendix. (d) It is unfair or deceptive to mark, § 23.5 Misuse of the word ‘‘vermeil.’’ describe, or otherwise represent all or part of an industry product as being (a) It is unfair or deceptive to rep- plated or coated with silver unless all resent, directly or by implication, that significant surfaces of the product or an industry product is ‘‘vermeil’’ if part contain a plating or coating of sil- such mark or description misrepresents ver that is of substantial thickness. 8 the product’s true composition. (e) The provisions of this section re- (b) An industry product may be de- lating to markings and descriptions of scribed or marked as ‘‘vermeil’’ if it industry products and parts thereof are consists of a base of sterling silver subject to the applicable tolerances of coated or plated on all significant sur- the National Stamping Act or any faces with gold, or gold alloy of not 9 less than 10 karat fineness, that is of amendment thereof. substantial thickness 7 and a minimum NOTE 1 TO § 23.6: The National Stamping thickness throughout equivalent to Act provides that silverplated articles shall two and one half (21⁄2) microns (or ap- not ‘‘be stamped, branded, engraved or im- 100 proximately /1,000,000ths of an inch) of printed with the word ‘sterling’ or the word fine gold. ‘coin,’ either alone or in conjunction with other words or marks.’’ 15 U.S.C. 297(a). NOTE 1 TO § 23.5: It is unfair or deceptive to NOTE 2 TO § 23.6: Exemptions recognized in use the term ‘‘vermeil’’ to describe a product the assay of silver industry products are list- in which the sterling silver has been covered ed in the appendix. with a base metal (such as nickel) plated with gold unless there is a disclosure that § 23.7 Misuse of the words ‘‘platinum,’’ the sterling silver is covered with a base ‘‘iridium,’’ ‘‘palladium,’’ ‘‘ruthe- metal that is plated with gold. nium,’’ ‘‘rhodium,’’ and ‘‘osmium.’’ NOTE 2 TO § 23.5: Exemptions recognized in the assay of gold filled, gold overlay, and (a) It is unfair or deceptive to use the rolled gold plate industry products are listed words ‘‘platinum,’’ ‘‘iridium,’’ ‘‘palla- in the appendix. dium,’’ ‘‘ruthenium,’’ ‘‘rhodium,’’ and ‘‘osmium,’’ or any abbreviation to § 23.6 Misrepresentation as to silver mark or describe all or part of an in- content. dustry product if such marking or de- (a) It is unfair or deceptive to mis- scription misrepresents the product’s represent that an industry product true composition. The Platinum Group contains silver, or to misrepresent an Metals (PGM) are Platinum, Iridium, industry product as having a silver Palladium, Ruthenium, Rhodium, and content, plating, electroplating, or Osmium. coating. (b) The following are examples of (b) It is unfair or deceptive to mark, markings or descriptions that may be describe, or otherwise represent all or misleading: 10 part of an industry product as ‘‘silver,’’ ‘‘solid silver,’’ ‘‘Sterling Silver,’’ ‘‘Sterling,’’ or the abbreviation ‘‘Ster.’’ 8 See footnote 3. 9 Under the National Stamping Act, sterling 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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(1) Use of the word ‘‘Platinum’’ or tions, marketers should convert the amount any abbreviation, without qualifica- in parts per thousand to a percentage that is tion, to describe all or part of an indus- accurate to the first decimal place (e.g., try product that is not composed 58.5% Platinum, 41.5% Cobalt). throughout of 950 parts per thousand (c) The following are examples of pure Platinum. markings and descriptions that are not considered unfair or deceptive: (2) Use of the word ‘‘Platinum’’ or (1) The following abbreviations for any abbreviation accompanied by a each of the PGM may be used for qual- number indicating the parts per thou- ity marks on articles: ‘‘Plat.’’ or ‘‘Pt.’’ sand of pure Platinum contained in the for Platinum; ‘‘Irid.’’ or ‘‘Ir.’’ for Irid- product without mention of the num- ium; ‘‘Pall.’’ or ‘‘Pd.’’ for Palladium; ber of parts per thousand of other PGM ‘‘Ruth.’’ or ‘‘Ru.’’ for Ruthenium; contained in the product, to describe ‘‘Rhod.’’ or ‘‘Rh.’’ for Rhodium; and all or part of an industry product that ‘‘Osmi.’’ or ‘‘Os.’’ for Osmium. is not composed throughout of at least (2) An industry product consisting of 850 parts per thousand pure platinum, at least 950 parts per thousand pure for example, ‘‘600Plat.’’ Platinum may be marked or described (3) Use of the word ‘‘Platinum’’ or as ‘‘Platinum.’’ any abbreviation thereof, to mark or (3) An industry product consisting of describe any product that is not com- 850 parts per thousand pure Platinum, posed throughout of at least 500 parts 900 parts per thousand pure Platinum, per thousand pure Platinum. or 950 parts per thousand pure Plat- (4) Use of the word ‘‘Platinum,’’ or inum may be marked ‘‘Platinum,’’ pro- any abbreviation accompanied by a vided that the Platinum marking is number or percentage indicating the preceded by a number indicating the parts per thousand of pure Platinum amount in parts per thousand of pure contained in the product, to describe Platinum (for industry products con- all or part of an industry product that sisting of 950 parts per thousand pure contains at least 500 parts per thou- Platinum, the marking described in sand, but less than 850 parts per thou- § 23.7(b)(2) above is also appropriate). sand, pure Platinum, and does not con- Thus, the following markings may be tain at least 950 parts per thousand used: ‘‘950Pt.,’’ ‘‘950Plat.,’’ ‘‘900Pt.,’’ PGM (for example, ‘‘585 Plat.’’) without ‘‘900Plat.,’’ ‘‘850Pt.,’’ or ‘‘850Plat.’’ a clear and conspicuous disclosure, im- (4) An industry product consisting of mediately following the name or de- at least 950 parts per thousand PGM, scription of such product: and of at least 500 parts per thousand (i) Of the full composition of the pure Platinum, may be marked ‘‘Plat- product (by name and not abbrevia- inum,’’ provided that the mark of each tion) and percentage of each metal; and PGM constituent is preceded by a num- (ii) That the product may not have ber indicating the amount in parts per the same attributes or properties as thousand of each PGM, as for example, traditional platinum products. Pro- ‘‘600Pt.350Ir.,’’ ‘‘600Plat.350Irid.,’’ or vided, however, that the marketer need ‘‘550Pt.350Pd.50Ir.,’’ not make disclosure under ‘‘550Plat.350Pall.50Irid.’’ § 23.7(b)(4)(ii), if the marketer has com- (5) An industry product consisting of petent and reliable scientific evidence at least 500 parts per thousand, but less that such product does not differ mate- than 850 parts per thousand, pure Plat- rially from any one product containing inum, and not consisting of at least 950 at least 850 parts per thousand pure parts per thousand PGM, may be Platinum with respect to the following marked or stamped accurately, with a attributes or properties: durability, quality marking on the article, using luster, density, scratch resistance, tar- parts per thousand and standard chem- nish resistance, hypoallergenicity, ical abbreviations (e.g., 585 Pt., 415 Co.). ability to be resized or repaired, reten- tion of precious metal over time, and NOTE TO § 23.7: Exemptions recognized in any other attribute or property mate- the assay of platinum industry products are rial to consumers. listed in appendix A of this part. NOTE TO PARAGRAPH (b)(4): When using per- [62 FR 16675, Apr. 8, 1997, as amended at 75 centages to qualify platinum representa- FR 81453, Dec. 28, 2010]

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§ 23.8 Misrepresentation as to content should be closely accompanied by an of pewter. identification of the part or parts to (a) It is unfair or deceptive to mark, which the mark is applicable. describe, or otherwise represent all or (b) Deception by reason of difference in part of an industry product as ‘‘Pew- the size of letters or words in a marking or ter’’ or any abbreviation if such mark markings. It is unfair or deceptive to or description misrepresents the prod- place a quality mark on a product in uct’s true composition. which the words or letters appear in (b) An industry product or part greater size than other words or letters thereof may be described or marked as of the mark, or when different mark- ‘‘Pewter’’ or any abbreviation if it con- ings placed on the product have dif- sists of at least 900 parts per 1000 Grade ferent applications and are in different A Tin, with the remainder composed of sizes, when the net impression of any metals appropriate for use in pewter. such marking would be misleading as to the metallic composition of all or § 23.9 Additional guidance for the use part of the product. (An example of im- of quality marks. proper marking would be the marking As used in these guides, the term of a gold electroplated product with quality mark means any letter, figure, the word ‘‘electroplate’’ in small type numeral, symbol, sign, word, or term, and the word ‘‘gold’’ in larger type, or any combination thereof, that has with the result that purchasers and been stamped, embossed, inscribed, or prospective purchasers of the product otherwise placed on any industry prod- might only observe the word ‘‘gold.’’) uct and which indicates or suggests NOTE 1 TO § 23.9: Legibility of markings. If that any such product is composed a quality mark is engraved or stamped on an throughout of any precious metal or industry product, or is printed on a tag or any precious metal alloy or has a sur- label attached to the product, the quality face or surfaces on which there has mark should be of sufficient size type as to been plated or deposited any precious be legible to persons of normal vision, should metal or precious metal alloy. Included be so placed as likely to be observed by pur- are the words ‘‘gold,’’ ‘‘karat,’’ chasers, and should be so attached as to re- ‘‘carat,’’ ‘‘silver,’’ ‘‘sterling,’’ main thereon until consumer purchase. NOTE 2 TO § 23.9: Disclosure of identity of ‘‘vermeil,’’ ‘‘platinum,’’ ‘‘iridium,’’ manufacturers, processors, or distributors. ‘‘palladium,’’ ‘‘ruthenium,’’ ‘‘rho- The National Stamping Act provides that dium,’’ or ‘‘osmium,’’ or any abbrevia- any person, firm, corporation, or association, tions thereof, whether used alone or in being a manufacturer or dealer subject to conjunction with the words ‘‘filled,’’ section 294 of the Act, who applies or causes ‘‘plated,’’ ‘‘overlay,’’ or ‘‘electro- to be applied a quality mark, or imports any plated,’’ or any abbreviations thereof. article bearing a quality mark ‘‘which indi- Quality markings include those in cates or purports to indicate that such article is made in whole or in part of gold or sil- which the words or terms ‘‘gold,’’ ver or of an alloy of either metal’’ shall ‘‘karat,’’ ‘‘silver,’’ ‘‘vermeil,’’ ‘‘plat- apply to the article the trademark or name inum’’ (or platinum group metals), or of such person. 15 U.S.C. 297. their abbreviations are included, either separately or as suffixes, prefixes, or § 23.10 Misuse of ‘‘corrosion proof,’’ syllables. ‘‘noncorrosive,’’ ‘‘corrosion resist- (a) Deception as to applicability of ant,’’ ‘‘rust proof,’’ ‘‘rust resistant,’’ marks. (1) If a quality mark on an in- etc. dustry product is applicable to only (a) It is unfair or deceptive to: part of the product, the part of the (1) Use the terms ‘‘corrosion proof,’’ product to which it is applicable (or in- ‘‘noncorrosive,’’ ‘‘rust proof,’’ or any applicable) should be disclosed when, other term of similar meaning to de- absent such disclosure, the location of scribe an industry product unless all the mark misrepresents the product or parts of the product will be immune part’s true composition. from rust and other forms of corrosion (2) If a quality mark is applicable to during the life expectancy of the prod- only part of an industry product, but uct; or not another part which is of similar (2) Use the terms ‘‘corrosion resist- surface appearance, each quality mark ant,’’ ‘‘rust resistant,’’ or any other

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term of similar meaning to describe an NOTE 2 TO PARAGRAPH (c): Additional guid- industry product unless all parts of the ance about imitation and laboratory-created product are of such composition as to diamond representations and misuse of words ‘‘gem,’’ ‘‘real,’’ ‘‘genuine,’’ ‘‘natural,’’ not be subject to material damage by etc., are set forth in §§ 23.23, 23.24, and 23.25. corrosion or rust during the major portion of the life expectancy of the prod- § 23.12 Misuse of the words ‘‘flawless,’’ uct under normal conditions of use. ‘‘perfect,’’ etc. (b) Among the metals that may be (a) It is unfair or deceptive to use the considered as corrosion (and rust) re- word ‘‘flawless’’ to describe any dia- sistant are: Pure nickel; Gold alloys of mond that discloses flaws, cracks, in- not less than 10 Kt. fineness; and Aus- clusions, carbon spots, clouds, internal tenitic stainless steels. lasering, or other blemishes or imper- fections of any sort when examined § 23.11 Definition and misuse of the under a corrected magnifier at 10- word ‘‘diamond.’’ power, with adequate illumination, by (a) A diamond is a natural mineral a person skilled in diamond grading. consisting essentially of pure carbon (b) It is unfair or deceptive to use the crystallized in the isometric system. It word ‘‘perfect,’’ or any representation is found in many colors. Its hardness is of similar meaning, to describe any di- 10; its specific gravity is approximately amond unless the diamond meets the 3.52; and it has a refractive index of definition of ‘‘flawless’’ and is not of 2.42. inferior color or make. (b) It is unfair or deceptive to use the (c) It is unfair or deceptive to use the unqualified word ‘‘diamond’’ to de- words ‘‘flawless’’ or ‘‘perfect’’ to describe or identify any object or product scribe a ring or other article of jewelry not meeting the requirements specified having a ‘‘flawless’’ or ‘‘perfect’’ prin- in the definition of diamond provided cipal diamond or diamonds, and supple- above, or which, though meeting such mentary stones that are not of such requirements, has not been symmetri- quality, unless there is a disclosure cally fashioned with at least seventeen that the description applies only to the (17) polished facets. principal diamond or diamonds.

NOTE 1 TO PARAGRAPH (b): It is unfair or de- § 23.13 Disclosure of treatments to dia- ceptive to represent, directly or by implica- monds. tion, that industrial grade diamonds or other A diamond is a gemstone product. non-jewelry quality diamonds are of jewelry Treatments to diamonds should be dis- quality. closed in the manner prescribed in (c) The following are examples of de- § 23.22 of these guides, Disclosure of scriptions that are not considered un- treatments to gemstones. fair or deceptive: [65 FR 78743, Dec. 15, 2000] (1) The use of the words ‘‘rough diamond’’ to describe or designate uncut § 23.14 Misuse of the term ‘‘blue or unfaceted objects or products satis- white.’’ fying the definition of diamond pro- It is unfair or deceptive to use the vided above; or term ‘‘blue white’’ or any representa- (2) The use of the word ‘‘diamond’’ to tion of similar meaning to describe any describe or designate objects or prod- diamond that under normal, north day- ucts satisfying the definition of dia- light or its equivalent shows any color mond but which have not been sym- or any trace of any color other than metrically fashioned with at least sev- blue or bluish. enteen (17) polished facets when in immediate conjunction with the word § 23.15 Misuse of the term ‘‘properly ‘‘diamond’’ there is either a disclosure cut,’’ etc. of the number of facets and shape of It is unfair or deceptive to use the the diamond or the name of a type of terms ‘‘properly cut,’’ ‘‘proper cut,’’ diamond that denotes shape and that ‘‘modern cut,’’ or any representation of usually has less than seventeen (17) similar meaning to describe any dia- facets (e.g., ‘‘rose diamond’’). mond that is lopsided, or is so thick or

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so thin in depth as to detract materi- each fraction (or the weight tolerance ally from the brilliance of the stone. being used) should also be made.

NOTE TO § 23.15: Stones that are commonly NOTE TO PARAGRAPH (d): When fractional called ‘‘fisheye’’ or ‘‘old mine’’ should not be representations of diamond weight are made, described as ‘‘properly cut,’’ ‘‘modern cut,’’ as described in paragraph d of this section, in etc. catalogs or other printed materials, the disclosure of the fact that the actual diamond § 23.16 Misuse of the words ‘‘brilliant’’ weight is within a specified range should be and ‘‘full cut.’’ made conspicuously on every page where a It is unfair or deceptive to use the fractional representation is made. Such dis- unqualified expressions ‘‘brilliant,’’ closure may refer to a chart or other de- tailed explanation of the actual ranges used. ‘‘brilliant cut,’’ or ‘‘full cut’’ to de- For example, ‘‘Diamond weights are not scribe, identify, or refer to any dia- exact; see chart on p.X for ranges.’’ mond except a round diamond that has at least thirty-two (32) facets plus the § 23.18 Definitions of various pearls. table above the girdle and at least As used in these guides, the terms set twenty-four (24) facets below. forth below have the following mean- NOTE TO § 23.16: Such terms should not be ings: applied to single or rose-cut diamonds. They (a) Pearl: A calcareous concretion may be applied to emerald-(rectangular) cut, consisting essentially of alternating pear-shaped, heart-shaped, oval-shaped, and concentric layers of carbonate of lime marquise-(pointed oval) cut diamonds meeting the above-stated facet requirements and organic material formed within the when, in immediate conjunction with the body of certain mollusks, the result of term used, the form of the diamond is dis- an abnormal secretory process caused closed. by an irritation of the mantle of the mollusk following the intrusion of § 23.17 Misrepresentation of weight some foreign body inside the shell of and ‘‘total weight.’’ the mollusk, or due to some abnormal (a) It is unfair or deceptive to mis- physiological condition in the mollusk, represent the weight of a diamond. neither of which has in any way been (b) It is unfair or deceptive to use the caused or induced by humans. word ‘‘point’’ or any abbreviation in (b) Cultured pearl: The composite any representation, advertising, mark- product created when a nucleus (usu- ing, or labeling to describe the weight ally a sphere of calcareous mollusk of a diamond, unless the weight is also shell) planted by humans inside the stated as decimal parts of a carat (e.g., shell or in the mantle of a mollusk is 25 points or .25 carat). coated with nacre by the mollusk. NOTE 1 TO PARAGRAPH (b): A carat is a (c) Imitation pearl: A manufactured standard unit of weight for a diamond and is product composed of any material or equivalent to 200 milligrams (1⁄5 gram). A materials that simulate in appearance point is one one hundredth (1⁄100) of a carat. a pearl or cultured pearl. (c) If diamond weight is stated as (d) Seed pearl: A small pearl, as de- decimal parts of a carat (e.g., .47 fined in (a), that measures approxi- carat), the stated figure should be ac- mately two millimeters or less. curate to the last decimal place. If diamond weight is stated to only one dec- § 23.19 Misuse of the word ‘‘pearl.’’ imal place (e.g., .5 carat), the stated (a) It is unfair or deceptive to use the figure should be accurate to the second unqualified word ‘‘pearl’’ or any other decimal place (e.g., ‘‘.5 carat’’ could word or phrase of like meaning to de- represent a diamond weight between scribe, identify, or refer to any object .495–.504). or product that is not in fact a pearl, as (d) If diamond weight is stated as defined in § 23.18(a). fractional parts of a carat, a con- (b) It is unfair or deceptive to use the spicuous disclosure of the fact that the word ‘‘pearl’’ to describe, identify, or diamond weight is not exact should be refer to a cultured pearl unless it is im- made in close proximity to the frac- mediately preceded, with equal con- tional representation and a disclosure spicuousness, by the word ‘‘cultured’’ of a reasonable range of weight for or ‘‘cultivated,’’ or by some other word

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or phrase of like meaning, so as to indi- (e) It is unfair or deceptive to use the cate definitely and clearly that the word ‘‘natura,’’ ‘‘natural,’’ ‘‘nature’s,’’ product is not a pearl. or any word, term, or phrase of like (c) It is unfair or deceptive to use the meaning to describe, identify, or refer word ‘‘pearl’’ to describe, identify, or to a cultured or imitation pearl. It is refer to an imitation pearl unless it is unfair or deceptive to use the term immediately preceded, with equal con- ‘‘organic’’ to describe, identify, or refer spicuousness, by the word ‘‘artificial,’’ to an imitation pearl, unless the term ‘‘imitation,’’ or ‘‘simulated,’’ or by is qualified in such a way as to make some other word or phrase of like clear that the product is not a natural meaning, so as to indicate definitely or cultured pearl. and clearly that the product is not a (f) It is unfair or deceptive to use the pearl. term ‘‘kultured,’’ ‘‘semi-cultured (d) It is unfair or deceptive to use the pearl,’’ ‘‘cultured-like,’’ ‘‘part-cul- terms ‘‘faux pearl,’’ ‘‘fashion pearl,’’ ‘‘Mother of Pearl,’’ or any other such tured,’’ ‘‘pre-mature cultured pearl,’’ term to describe or qualify an imita- or any word, term, or phrase of like tion pearl product unless it is imme- meaning to describe, identify, or refer diately preceded, with equal conspicu- to an imitation pearl. ousness, by the word ‘‘artificial,’’ (g) It is unfair or deceptive to use the ‘‘imitation,’’ or ‘‘simulated,’’ or by term ‘‘South Sea pearl’’ unless it de- some other word or phrase of like scribes, identifies, or refers to a pearl meaning, so as to indicate definitely that is taken from a salt water mol- and clearly that the product is not a lusk of the Pacific Ocean South Sea Is- pearl. lands, Australia, or Southeast Asia. It is unfair or deceptive to use the term § 23.20 Misuse of terms such as ‘‘cul- ‘‘South Sea cultured pearl’’ unless it tured pearl,’’ ‘‘seed pearl,’’ ‘‘Oriental describes, identifies, or refers to a cul- pearl,’’ ‘‘natura,’’ ‘‘kultured,’’ ‘‘real,’’ ‘‘gem,’’ ‘‘synthetic,’’ and regional tured pearl formed in a salt water mol- designations. lusk of the Pacific Ocean South Sea Is- lands, Australia, or Southeast Asia. (a) It is unfair or deceptive to use the term ‘‘cultured pearl,’’ ‘‘cultivated (h) It is unfair or deceptive to use the pearl,’’ or any other word, term, or term ‘‘Biwa cultured pearl’’ unless it phrase of like meaning to describe, describes, identifies, or refers to cul- identify, or refer to any imitation tured pearls grown in fresh water mol- pearl. lusks in the lakes and rivers of Japan. (b) It is unfair or deceptive to use the (i) It is unfair or deceptive to use the term ‘‘seed pearl’’ or any word, term, word ‘‘real,’’ ‘‘genuine,’’ ‘‘precious,’’ or or phrase of like meaning to describe, any word, term, or phrase of like mean- identify, or refer to a cultured or an ing to describe, identify, or refer to any imitation pearl, without using the ap- imitation pearl. propriate qualifying term ‘‘cultured’’ (j) It is unfair or deceptive to use the (e.g., ‘‘cultured seed pearl’’) or ‘‘simu- word ‘‘gem’’ to describe, identify, or lated,’’ ‘‘artificial,’’ or ‘‘imitation’’ refer to a pearl or cultured pearl that (e.g., ‘‘imitation seed pearl’’). does not possess the beauty, symmetry, (c) It is unfair or deceptive to use the rarity, and value necessary for quali- term ‘‘Oriental pearl’’ or any word, fication as a gem. term, or phrase of like meaning to describe, identify, or refer to any indus- NOTE TO PARAGRAPH (j): Use of the word try product other than a pearl taken ‘‘gem’’ with respect to cultured pearls should from a salt water mollusk and of the be avoided since few cultured pearls possess the necessary qualifications to properly be distinctive appearance and type of termed ‘‘gems.’’ Imitation pearls should not pearls obtained from mollusks inhab- be described as ‘‘gems.’’ iting the Persian Gulf and recognized in the jewelry trade as Oriental pearls. (k) It is unfair or deceptive to use the (d) It is unfair or deceptive to use the word ‘‘synthetic’’ or similar terms to word ‘‘Oriental’’ to describe, identify, describe cultured or imitation pearls. or refer to any cultured or imitation (l) It is unfair or deceptive to use the pearl. terms ‘‘Japanese Pearls,’’ ‘‘Chinese

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Pearls,’’ ‘‘Mallorca Pearls,’’ or any re- made in the solicitation for or description of gional designation to describe, iden- the product. tify, or refer to any cultured or imita- [65 FR 78743, Dec. 15, 2000] tion pearl, unless the term is immediately preceded, with equal conspicu- § 23.23 Misuse of the words ‘‘ruby,’’ ousness, by the word ‘‘cultured,’’ ‘‘ar- ‘‘sapphire,’’ ‘‘emerald,’’ ‘‘topaz,’’ tificial,’’ ‘‘imitation,’’ or ‘‘simulated,’’ ‘‘stone,’’ ‘‘birthstone,’’ ‘‘gemstone,’’ or by some other word or phrase of like etc. meaning, so as to indicate definitely (a) It is unfair or deceptive to use the and clearly that the product is a cul- unqualified words ‘‘ruby,’’ ‘‘sapphire,’’ tured or imitation pearl. ‘‘emerald,’’ ‘‘topaz,’’ or the name of § 23.21 Misrepresentation as to cul- any other precious or semi-precious tured pearls. stone to describe any product that is not in fact a natural stone of the type It is unfair or deceptive to misrepre- described. sent the manner in which cultured pearls are produced, the size of the nu- (b) It is unfair or deceptive to use the cleus artificially inserted in the mol- word ‘‘ruby,’’ ‘‘sapphire,’’ ‘‘emerald,’’ lusk and included in cultured pearls, ‘‘topaz,’’ or the name of any other pre- the length of time that such products cious or semi-precious stone, or the remained in the mollusk, the thickness word ‘‘stone,’’ ‘‘birthstone,’’ ‘‘gem- of the nacre coating, the value and stone,’’ or similar term to describe a quality of cultured pearls as compared laboratory-grown, laboratory-created, with the value and quality of pearls [manufacturer name]-created, syn- and imitation pearls, or any other ma- thetic, imitation, or simulated stone, terial matter relating to the forma- unless such word or name is imme- tion, structure, properties, characteris- diately preceded with equal conspicu- tics, and qualities of cultured pearls. ousness by the word ‘‘laboratory- grown,’’ ‘‘laboratory-created,’’ ‘‘[man- § 23.22 Disclosure of treatments to ufacturer name]-created,’’ ‘‘synthetic,’’ gemstones. or by the word ‘‘imitation’’ or ‘‘simu- It is unfair or deceptive to fail to dis- lated,’’ so as to disclose clearly the na- close that a gemstone has been treated ture of the product and the fact it is if: not a natural gemstone. (a) The treatment is not permanent. The seller should disclose that the NOTE TO PARAGRAPH (h): The use of the gemstone has been treated and that the word ‘‘faux’’ to describe a laboratory-created treatment is or may not be permanent; or imitation stone is not an adequate disclosure that the stone is not natural. (b) The treatment creates special care requirements for the gemstone. (c) It is unfair or deceptive to use the The seller should disclose that the word ‘‘laboratory-grown,’’ ‘‘laboratory- gemstone has been treated and has spe- created,’’ ‘‘[manufacturer name]-cre- cial care requirements. It is also rec- ated,’’ or ‘‘synthetic’’ with the name of ommended that the seller disclose the any natural stone to describe any in- special care requirements to the pur- dustry product unless such industry chaser; product has essentially the same opti- (c) The treatment has a significant cal, physical, and chemical properties effect on the stone’s value. The seller as the stone named. should disclose that the gemstone has been treated. § 23.24 Misuse of the words ‘‘real,’’ ‘‘genuine,’’ ‘‘natural,’’ ‘‘precious,’’ NOTE TO § 23.22: The disclosures outlined in this section are applicable to sellers at every etc. level of trade, as defined in § 23.0(b) of these It is unfair or deceptive to use the Guides, and they may be made at the point word ‘‘real,’’ ‘‘genuine,’’ ‘‘natural,’’ of sale prior to sale; except that where a jew- ‘‘precious,’’ ‘‘semi-precious,’’ or similar elry product can be purchased without per- sonally viewing the product, (e.g., direct terms to describe any industry product mail catalogs, online services, televised that is manufactured or produced arti- shopping programs) disclosure should be ficially.

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§ 23.25 Misuse of the word ‘‘gem.’’ APPENDIX TO PART 23—EXEMPTIONS RECOGNIZED IN THE ASSAY FOR (a) It is unfair or deceptive to use the QUALITY OF GOLD ALLOY, GOLD word ‘‘gem’’ to describe, identify, or FILLED, GOLD OVERLAY, ROLLED refer to a ruby, sapphire, emerald, GOLD PLATE, SILVER, AND PLATINUM topaz, or other industry product that INDUSTRY PRODUCTS does not possess the beauty, symmetry, rarity, and value necessary for quali- (a) Exemptions recognized in the industry fication as a gem. and not to be considered in any assay for quality of a karat gold industry product in- (b) It is unfair or deceptive to use the clude springs, posts, and separable backs of word ‘‘gem’’ to describe any labora- lapel buttons, posts and nuts for attaching tory-created industry product unless interchangeable ornaments, metallic parts the product meets the requirements of completely and permanently encased in a paragraph (a) of this section and unless nonmetallic covering, field pieces and bezels 1 such word is immediately accom- for lockets, and wire pegs or rivets used for applying mountings and other ornaments, panied, with equal conspicuousness, by which mountings or ornaments shall be of the word ‘‘laboratory-grown,’’ ‘‘labora- the quality marked. tory-created,’’ or ‘‘[manufacturer- NOTE: Exemptions recognized in the indus- name]-created,’’ ‘‘synthetic,’’ or by try and not to be considered in any assay for some other word or phrase of like quality of a karat gold optical product in- meaning, so as to clearly disclose that clude: the hinge assembly (barrel or other it is not a natural gem. special types such as are customarily used in plastic frames); washers, bushings, and nuts NOTE TO § 23.25: In general, use of the word of screw assemblies; dowels; springs for ‘‘gem’’ with respect to laboratory-created spring shoe straps; metal parts permanently stones should be avoided since few labora- encased in a non-metallic covering; and for tory-created stones possess the necessary oxfords, 2 coil and joint springs. qualifications to properly be termed ‘‘gems.’’ (b) Exemptions recognized in the industry Imitation diamonds and other imitation and not to be considered in any assay for stones should not be described as ‘‘gems.’’ quality of a gold filled, gold overlay and Not all diamonds or natural stones, includ- rolled gold plate industry product, other ing those classified as precious stones, pos- than watchcases, include joints, catches, sess the necessary qualifications to be prop- screws, pin stems, pins of scarf pins, hat erly termed ‘‘gems.’’ pins, etc., field pieces and bezels for lockets, posts and separate backs of lapel buttons, § 23.26 Misuse of the words ‘‘flawless,’’ bracelet and necklace snap tongues, springs, ‘‘perfect,’’ etc. and metallic parts completely and permanently encased in a nonmetallic covering. (a) It is unfair or deceptive to use the word ‘‘flawless’’ as a quality descrip- NOTE: Exemptions recognized in the industry and not to be considered in any assay for tion of any gemstone that discloses quality of a gold filled, gold overlay and blemishes, inclusions, or clarity faults rolled gold plate optical product include: of any sort when examined under a cor- screws; the hinge assembly (barrel or other rected magnifier at 10-power, with ade- special types such as are customarily used in quate illumination, by a person skilled plastic frames); washers, bushings, tubes and in gemstone grading. nuts of screw assemblies; dowels; pad inserts; springs for spring shoe straps, cores and/or (b) It is unfair or deceptive to use the inner windings of comfort cable temples; word ‘‘perfect’’ or any representation metal parts permanently encased in a non- of similar meaning to describe any metallic covering; and for oxfords, the han- gemstone unless the gemstone meets dle and catch. the definition of ‘‘flawless’’ and is not of inferior color or make. 1 Field pieces of lockets are those inner (c) It is unfair or deceptive to use the portions used as frames between the inside edges of the locket and the spaces for hold- word ‘‘flawless,’’ ‘‘perfect,’’ or any rep- ing pictures. Bezels are the separable inner resentation of similar meaning to de- metal rings to hold the pictures in place. scribe any imitation gemstone. 2 Oxfords are a form of eyeglasses where a flat spring joins the two eye rims and the tension it exerts on the nose serves to hold the unit in place. Oxfords are also referred to as pince nez.

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(c) Exemptions recognized in the industry § 24.0 Scope and purpose of guides. and not to be considered in any assay for quality of a silver industry product include (a) The Guides in this part apply to screws, rivets, springs, spring pins for wrist the manufacture, sale, distribution, watch straps; posts and separable backs of marketing, or advertising of all kinds lapel buttons; wire pegs, posts, and nuts used or types of leather or simulated-leather for applying mountings or other ornaments, trunks, suitcases, traveling bags, sam- which mountings or ornaments shall be of ple cases, instrument cases, brief cases, the quality marked; pin stems (e.g., of ring binders, billfolds, wallets, key badges, brooches, emblem pins, hat pins, and cases, coin purses, card cases, French scarf pins, etc.); levers for belt buckles; purses, dressing cases, stud boxes, tie blades and skeletons of pocket knives; field cases, jewel boxes, travel kits, gadget pieces and bezels for lockets; bracelet and bags, camera bags, ladies’ handbags, necklace snap tongues; any other joints, shoulder bags, purses, pocketbooks, catches, or screws; and metallic parts completely and permanently encased in a non- footwear, belts (when not sold as part metallic covering. of a garment) and similar articles (d) Exemptions recognized in the industry (hereinafter, ‘‘industry products’’). and not to be considered in any assay for (b) These Guides represent adminis- quality of an industry product of silver in trative interpretations of laws admin- combination with gold include joints, istered by the Federal Trade Commis- catches, screws, pin stems, pins of scarf pins, sion for the guidance of the public in hat pins, etc., posts and separable backs of conducting its affairs in conformity lapel buttons, springs, and metallic parts with legal requirements. These Guides completely and permanently encased in a specifically address the application of nonmetallic covering. section 5 of the FTC Act (15 U.S.C. 45) (e) Exemptions recognized in the industry to the manufacture, sale, distribution, and not to be considered in any assay for marketing, and advertising of industry quality of a platinum industry product in- products listed in paragraph (a) of this clude springs, winding bars, sleeves, crown cores, mechanical joint pins, screws, rivets, section. They provide the basis for vol- dust bands, detachable movement rims, hat- untary compliance with such laws by pin stems, and bracelet and necklace snap members of industry. Conduct incon- tongues. In addition, the following exemp- sistent with the positions articulated tions are recognized for products marked in in these Guides may result in correc- accordance with section 23.8(b)(5) of these tive action by the Commission under Guides (i.e., products that are less than 500 section 5 if, after investigation, the parts per thousand platinum): pin tongues, Commission has reason to believe that joints, catches, lapel button backs and the the behavior falls within the scope of posts to which they are attached, scarf-pin conduct declared unlawful by the stat- stems, hat pin sockets, shirt-stud backs, ute. vest-button backs, and ear-screw backs, provided such parts are made of the same qual- § 24.1 Deception (general). ity platinum as is used in the balance of the article. It is unfair or deceptive to misrepresent, directly or by implication, the PART 24—GUIDES FOR SELECT kind, grade, quality, quantity, material content, thickness, finish, service- LEATHER AND IMITATION LEATH- ability, durability, price, origin, size, ER PRODUCTS weight, ease of cleaning, construction, manufacture, processing, distribution, Sec. or any other material aspect of an in- 24.0 Scope and purpose of guides. dustry product. 24.1 Deception (general). 24.2 Deception as to composition. § 24.2 Deception as to composition. 24.3 Misuse of the terms ‘‘waterproof,’’ ‘‘dustproof,’’ ‘‘warpproof,’’ ‘‘scuffproof,’’ It is unfair or deceptive to misrepre- ‘‘scratchproof,’’ ‘‘scuff resistant,’’ or sent, directly or by implication, the ‘‘scratch resistant.’’ composition of any industry product or part thereof. It is unfair or deceptive to AUTHORITY: 15 U.S.C. 45, 46. use the unqualified term ‘‘leather’’ or SOURCE: 61 FR 51583, Oct. 3, 1996, unless other unqualified terms suggestive of otherwise noted. leather to describe industry products

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