§ 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,’’ ‘‘re- manufactured,’’ 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new, rebuilt or unimpaired used parts, the manufacturer for which the prod- and such rewinding or machining and uct was originally made, is revealed other operations performed as are nec- and the product was rebuilt, remanu- essary to put the industry product in factured, reconditioned or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. 148 VerDate Mar<15>2010 14:34 Mar 20, 2012 Jkt 226052 PO 00000 Frm 00158 Fmt 8010 Sfmt 8010 Y:\SGML\226052.XXX 226052 wreier-aviles on DSK5TPTVN1PROD with CFR Federal Trade Commission § 23.0 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 149 VerDate Mar<15>2010 14:34 Mar 20, 2012 Jkt 226052 PO 00000 Frm 00159 Fmt 8010 Sfmt 8010 Y:\SGML\226052.XXX 226052 wreier-aviles on DSK5TPTVN1PROD with CFR § 23.1 16 CFR Ch. I (1–1–12 Edition) 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.