Who Regulates the Lab Grown Diamond Industry?
The lab grown diamond industry has seen exponential growth in recent years. It has challenged the mined diamond industry in many ways. However, just like the mined diamond industry’s regulation, there is always an ongoing debate about the regulation of the lab diamond industry.
This blog explores the regulatory structure for lab grown diamonds, the organizations that regulate the industry in different countries, the challenges, and more.
Institutes that Regulate the Manufactured Diamond Industry
Federal Trade Commission (FTC)
FTC is a US-based regulatory institute that oversees the lab grown diamond industry in the USA. In 2018, the FTC made some revisions to guidelines for lab diamonds. These included details on how manufactured diamonds should be marketed and sold.
The FTC removed the word ‘natural’ from its definition of a diamond. This means lab grown diamonds have the same properties as mined diamonds. It also allowed the use of words such as ‘cultured’, laboratory created’, synthetic diamonds’, and lab grown diamonds.
Self-regulation organizations formed by the industry
There are many organizations and institutions formed by the lab grown diamond industry that follow standard practices to regulate the manufactured diamond market.
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The Jewelers Vigilance Committee (JVC): This committee provides legal compliance guidance, including matters on how to properly disclose lab grown diamonds. The committee works closely with the FTC.
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The Lab Grown Diamond Council (LGDC): This council was formed with a focus on lab grown diamonds, and offers certification programs, standards for sustainability and production practices.
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International Standards Organization (ISO): The ISO helps the industry follow established standards for using diamond grading and terminology. These are applied to mined as well as lab grown diamonds.
How are Lab Grown Diamonds Regulated Globally?
Different countries have different regulatory rules for lab created diamonds. In this section, we look at the regulatory standards of some countries.
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India: One of the biggest manmade diamond producers in the world, India has the Gem & Jewelry Export Promotion Council (GJEPC) that regulates the lab diamond industry.
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China: China’s synthetic diamond industry has grown exponentially in recent years. The country follows regulatory standards through its National Gemstone Testing Center.
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The European Union (EU): The EU follows consumer protection regulations and expects clear disclosure of synthetic diamonds.
Lab Made Diamond Grading and Certification
Whether diamonds are mined or manmade, they go through a process of grading and certification. Organizations such as the Gemological Institute of America (GIA) and International Gemological Institute (IGI) offer standardized lab grown diamond grading and certification services and practices. In addition to these institutes, there are independent set-ups that engage in grading and lab diamond certification.
Challenges and Future Directions
Even though there are many lab grown diamond regulatory organizations, the industry faces regulatory issues. However, with new and advanced technologies and the different stakeholders in the lab grown diamond industry ecosystem coming together to tackle regulatory concerns, the lab diamond industry is in a much better position, following regulation regarding grading and certification.
Summing up
Whether you’re an engineered diamond wholesaler, retailer, a jewelry designer, or an individual consumer, the information shared in this article will help you get an understanding of how lab diamond regulations work. If you’re looking to buy lab grown diamonds, ensure you choose reputed lab grown diamond manufacturing brands, such as Grown Diamond Corporation.
