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Statement of Basis and Purpose: Final Revisions to the Jewelry Guides

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Statement of Basis and Purpose: Final Revisions to the Jewelry Guides STATEMENT OF BASIS AND PURPOSE: FINAL REVISIONS TO THE JEWELRY GUIDES TABLE OF CONTENTS I. Background ............................................................................................................................... 1 A. The Jewelry Guides............................................................................................................. 1 B. The Jewelry Guides Review ............................................................................................... 2 C. The Commission’s Review Process .................................................................................... 3 D. Outline of this Statement .................................................................................................... 4 II. General Issues ........................................................................................................................... 4 A. Benefits and Burdens of the Guides.................................................................................... 4 B. International Standards ....................................................................................................... 5 C. Industry Compliance ........................................................................................................... 6 D. Consumer and Business Education ..................................................................................... 6 III. Specific Issues ........................................................................................................................... 7 A. Surface Application of Precious Metals ............................................................................. 7 1. Previous Guides ............................................................................................................ 7 a) Gold ....................................................................................................................... 7 b) Vermeil ................................................................................................................ 10 c) Silver ................................................................................................................... 10 2. Proposed Revisions ..................................................................................................... 11 a) Unqualified Precious Metal Claims Regarding Coated Products ....................... 11 b) Qualifying Claims for Coated Products .............................................................. 11 3. Comments ................................................................................................................... 16 a) Unqualified Precious Metal Claims Regarding Coated Products ....................... 16 b) Qualifying Claims for Coated Products .............................................................. 17 2. Analysis and Final Guidance ...................................................................................... 32 a) Unqualified Precious Metal Claims .................................................................... 32 b) Describing Coated Products ................................................................................ 33 B. Alloys with Precious Metals in Amounts Below Minimum Thresholds .......................... 44 i 1. Previous Guides .......................................................................................................... 44 2. Proposed Revisions ..................................................................................................... 45 3. Comments ................................................................................................................... 47 a) Supporting the Proposed Guidance for Gold Alloys ........................................... 48 b) Disagreeing with the Proposed Guidance for Gold and Silver ........................... 48 c) Platinum Alloy Thresholds.................................................................................. 53 4. Analysis and Final Guidance ...................................................................................... 53 C. Products Containing More than One Precious Metal ....................................................... 57 1. Previous Guides .......................................................................................................... 57 2. Proposed Revision ...................................................................................................... 57 3. Comments ................................................................................................................... 58 4. Final Guidance ............................................................................................................ 58 D. Describing Gold Quality ................................................................................................... 58 1. Previous Guides .......................................................................................................... 58 2. Comments ................................................................................................................... 59 3. Analysis....................................................................................................................... 60 E. Palladium .......................................................................................................................... 61 1. Previous Guides .......................................................................................................... 61 2. 2016 Statement Analysis............................................................................................. 61 3. Comments ................................................................................................................... 62 4. Analysis....................................................................................................................... 62 F. Composite Gemstone Products ......................................................................................... 62 1. Previous Guides .......................................................................................................... 62 2. Proposed Revisions ..................................................................................................... 63 3. Comments ................................................................................................................... 66 a) Supporting the Proposed Guidance ..................................................................... 66 b) Disagreeing with the Proposed Guidance ........................................................... 66 4. Analysis and Final Guidance ...................................................................................... 70 G. Varietals ............................................................................................................................ 72 1. Previous Guides .......................................................................................................... 72 ii 2. Proposed Revisions ..................................................................................................... 73 3. Comments ................................................................................................................... 74 4. Analysis and Final Guidance ...................................................................................... 77 H. Cultured Diamonds ........................................................................................................... 79 1. Previous Guides .......................................................................................................... 79 2. Proposed Revisions ..................................................................................................... 79 3. Comments ................................................................................................................... 80 a) Recommending “Cultured” and Similar Terms .................................................. 81 b) Opposing Qualified Use of “Cultured” ............................................................... 84 4. Analysis and Final Guidance ...................................................................................... 87 I. Use of “Real,” “Genuine,” and “Natural” to Describe Man-Made Diamonds ................. 93 1. Previous Guides .......................................................................................................... 93 2. Analysis....................................................................................................................... 93 J. Qualifying Claims About Man-Made Gemstones ............................................................ 94 1. Previous Guides .......................................................................................................... 94 2. Analysis and Final Guidance ...................................................................................... 95 K. Disclosing Treatments to Gemstones ................................................................................ 95 1. Previous Guides .......................................................................................................... 95 2. Request for Information .............................................................................................. 96 3. Comments ................................................................................................................... 97 4. Analysis and Final Guidance ...................................................................................... 97 L. Gem/Gemstone
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