Federal Trade Commission § 23.0 unimpaired used parts, all missing ``natural,'' ``precious,'' etc. parts replaced with new, rebuilt 1 or 23.25 Misuse of the word ``gem.'' unimpaired used parts, and such re- 23.26 Misuse of the words ``flawless,'' ``per- winding or machining and other oper- fect,'' etc. ations performed as are necessary to APPENDIX TO PART 23ÐEXEMPTIONS RECOG- put the industry product in sound NIZED IN THE ASSAY FOR QUALITY OF GOLD working condition. ALLOY, GOLD FILLED, GOLD OVERLAY, (c) It is an unfair trade practice to ROLLED GOLD PLATE, SILVER, AND PLATI- represent an industry product as ``Fac- NUM INDUSTRY PRODUCTS. tory Rebuilt'' unless the product was AUTHORITY: Sec. 6, 5, 38 Stat. 721, 719; 15 rebuilt as described in paragraph (b) of U.S.C. 46, 45. this section at a factory generally en- SOURCE: 61 FR 27212, May 30, 1996, unless gaged in the rebuilding of such prod- otherwise noted. ucts. (See also § 20.2) [Guide 3] § 23.0 Scope and application. PART 23ÐGUIDES FOR THE JEW- (a) These guides apply to jewelry in- ELRY, PRECIOUS METALS, AND dustry products, which include, but are PEWTER INDUSTRIES not limited to, the following: gem- stones and their laboratory-created Sec. and imitation substitutes; natural and 23.0 Scope and application. cultured pearls and their imitations; 23.1 Deception (general). 23.2 Misleading illustrations. and metallic watch bands not perma- 23.3 Misuse of the terms ``hand-made,'' nently attached to watches. 1 These ``hand-polished,'' etc. guides also apply to articles, including 23.4 Misrepresentation as to gold content. optical frames, pens and pencils, flat- 23.5 Misuse of the word ``vermeil.'' ware, and hollowware, fabricated from 23.6 Misrepresentation as to silver content. 23.7 Misuse of the words ``platinum,'' ``irid- precious metals (gold, silver and plati- ium,'' ``palladium,'' ``ruthenium,'' ``rho- num group metals), precious metal al- dium,'' and ``osmium.'' loys, and their imitations. These 23.8 Misrepresentation as to content of pew- guides also apply to all articles made ter. from pewter. For the purposes of these 23.9 Additional guidance for the use of qual- guides, all articles covered by these ity marks. guides are defined as ``industry prod- 23.10 Misuse of ``corrosion proof,'' ``non- corrosive,'' ``corrosion resistant,'' ``rust ucts.'' proof,'' ``rust resistant,'' etc. (b) These guides apply to persons, 23.11 Definition and misuse of the word ``di- partnerships, or corporations, at every amond.'' level of the trade (including but not 23.12 Misuse of the words ``flawless,'' ``per- limited to manufacturers, suppliers, fect,'' etc. 23.13 Disclosing existence of artificial color- and retailers) engaged in the business ing, infusing, etc. of offering for sale, selling, or distrib- 23.14 Misuse of the term ``blue white.'' uting industry products. 23.15 Misuse of the term ``properly cut,'' etc. NOTE TO PARAGRAPH (B): To prevent con- 23.16 Misuse of the words ``brilliant'' and sumer deception, persons, partnerships, or ``full cut.'' corporations in the business of appraising, 23.17 Misrepresentation of weight and identifying, or grading industry products ``total weight.'' should utilize the terminology and standards 23.18 Definitions of various pearls. set forth in the guides. 23.19 Misuse of the word ``pearl.'' 23.20 Misuse of terms such as ``cultured (c) These guides apply to claims and pearl,'' ``seed pearl,'' ``Oriental pearl,'' representations about industry prod- ``natura,'' ``kultured,'' ``real,'' ``gem,'' ucts included in labeling, advertising, ``synthetic,'' and regional designations. promotional materials, and all other 23.21 Misrepresentation as to cultured forms of marketing, whether asserted pearls. directly or by implication, through 23.22 Deception as to gemstones. 23.23 Misuse of the words ``ruby,'' ``sap- phire,'' ``emerald,'' ``topaz,'' ``stone,'' 1 The Guides for the Watch Industry, 16 ``birthstone,'' ``gemstone,'' etc. CFR part 245, address watchcases and perma- 23.24 Misuse of the words ``real,'' ``genuine,'' nently attached watchbands. 133 VerDate 27<FEB>98 08:06 Mar 04, 1998 Jkt 179052 PO 00000 Frm 00127 Fmt 8010 Sfmt 8010 Y:\SGML\179052.TXT 179052-3 § 23.1 16 CFR Ch. I (1±1±98 Edition) words, symbols, emblems, logos, illus- and forming of such product from raw trations, depictions, product brand materials and its finishing and decora- names, or through any other means. tion were accomplished by hand labor and manually-controlled methods § 23.1 Deception (general). which permit the maker to control and It is unfair or deceptive to misrepre- vary the construction, shape, design, sent the type, kind, grade, quality, and finish of each part of each individ- quantity, metallic content, size, ual product. 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, tribution, or any other material aspect semi-finished parts, or blanks. of an industry product. (b) It is unfair or deceptive to rep- NOTE 1 TO § 23.1: If, in the sale or offering resent, directly or by implication, that 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 qualifications or disclosures, such as those scribed was accomplished by hand described in the guides, should be suffi- labor and manually-controlled methods ciently clear and prominent. Clarity of lan- which permit the maker to control and guage, relative type size and proximity to vary the type, amount, and effect of the claim being qualified, and an absence of such operation on each part of each in- 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, durabil- (1) Use of the word ``Gold'' or any ab- ity, serviceability, origin, preparation, breviation, without qualification, to production, manufacture, distribution, describe all or part of an industry prod- or any other material aspect of an in- uct, which is not composed throughout dustry product. of fine (24 karat) gold. NOTE TO § 23.2: An illustration or depiction (2) Use of the word ``Gold'' or any ab- of a diamond or other gemstone that por- breviation to describe all or part of an trays it in greater than its actual size may industry product composed throughout mislead consumers, unless a disclosure is of an alloy of gold, unless a correct des- made about the item's true size. ignation of the karat fineness of the alloy immediately precedes the word § 23.3 Misuse of the terms ``hand- ``Gold'' or its abbreviation, and such made,'' ``hand-polished,'' etc. fineness designation is of at least equal (a) It is unfair or deceptive to rep- conspicuousness. resent, directly or by implication, that any industry product is hand-made or 2 See § 23.4(c) for examples of acceptable hand-wrought unless the entire shaping markings and descriptions. 134 VerDate 27<FEB>98 08:06 Mar 04, 1998 Jkt 179052 PO 00000 Frm 00128 Fmt 8010 Sfmt 8010 Y:\SGML\179052.TXT 179052-3 Federal Trade Commission § 23.4 (3) Use of the word ``Gold'' or any ab- (9) Use of the word ``Gold'' or any ab- breviation 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 ab- alloy of gold of less than 10 karat breviation is adequately qualified to fineness. indicate that the product or part is NOTE TO PARAGRAPH (B) § 23.4: The provi- only surface-plated. sions regarding the use of the word ``Gold,'' (4) Use of the term ``Gold Plate,'' or any abbreviation, as described above, are ``Gold Plated,'' or any abbreviation to applicable to ``Duragold,'' ``Diragold,'' describe all or part of an industry prod- ``Noblegold,'' ``Goldine,'' ``Layered Gold,'' or uct unless such product or part con- any words or terms of similar meaning. tains a surface-plating of gold alloy, (c) The following