WFDB President Ernie Blom: Insufficient Industry Input Undermines FTC Diamond Terminology Revisions
Antwerp, Belgium – July 2018: The World Federation of Diamond Bourses (WFDB), a globally recognized authority representing the interests of the international diamond trade, has issued a comprehensive response to the revised guidelines released by the U.S. Federal Trade Commission (FTC) concerning the proper descriptors for diamonds. WFDB President Ernie Blom articulated the federation’s profound disappointment, stating that the newly unveiled FTC guidelines deviate significantly from the universally agreed-upon Diamond Terminology Guidelines. These established guidelines were painstakingly developed and implemented just the previous year through a concerted effort by leading international industry bodies, including the WFDB, the International Diamond Council (IDC), the International Diamond Manufacturers Association (IDMA), and CIBJO, the World Jewellery Confederation. While the WFDB acknowledged and appreciated the FTC’s clear directive requiring all lab-grown diamonds to be explicitly and conspicuously disclosed, Blom emphasized that the overall framework fails to adequately reflect the collective expertise and nuanced understanding of the global diamond sector, potentially leading to widespread consumer confusion.
“Our industry worked collaboratively to forge a united stance on nomenclature, drawing upon the combined knowledge and extensive experience of all major sector bodies. It is perplexing and concerning that the FTC appears to have chosen to move in an entirely different direction,” Blom asserted. This divergence, he elaborated, risks undermining the clarity and consistency that the WFDB and its partners have diligently worked to establish, threatening the foundation of trust upon which the entire diamond industry operates. The core of the WFDB’s argument revolves around the paramount importance of precise and unambiguous language in describing diamonds, a necessity that becomes even more critical in an evolving market where both natural and laboratory-grown stones coexist.
The Contested Evolution of Diamond Descriptors: Natural vs. Lab-Grown
The revised FTC guidelines represent a notable shift from previous regulatory stances. Historically, the FTC had approved a range of terms for non-mined diamonds, including “laboratory-created,” “laboratory-grown,” “[manufacturer-name]-created,” and “synthetic.” The updated document retains the first three descriptors but has controversially removed “synthetic” from its approved list. This specific alteration has been a significant point of contention for the WFDB. “We hold the firm belief that these changes introduce an undue and potentially misleading bias towards the lab-grown diamond sector,” Blom commented, articulating the industry’s apprehension that this linguistic shift could inadvertently grant an unfair marketing advantage to manufactured stones. While the WFDB genuinely appreciates the considerable effort and dedication invested by the FTC in developing these regulations, there is a strong sentiment that the comprehensive views and invaluable insights of the global diamond sector were not adequately taken into account, despite acknowledgements of consultations with American industry bodies. The WFDB, as a global representative, stresses that the perspectives of its international members, who encompass the full spectrum of the diamond supply chain worldwide, were not sufficiently integrated into the final policy. This oversight, they argue, has resulted in guidelines that, while partly commendable for mandating clear marking of lab-grown stones, ultimately fall short of providing the holistic clarity required for a truly transparent global market.
Upholding Consumer Confidence: The Core Mandate of the WFDB
The steadfast protection of consumer confidence remains the WFDB’s foremost objective and guiding principle. Ernie Blom explicitly cautioned that the recent revisions to the FTC guidelines possess the inherent potential to introduce a significant degree of confusion among consumers, thereby eroding trust in the diamond purchasing process. The FTC’s updated stance permits manufacturers of diamonds created in a factory environment the freedom to utilize a variety of other descriptors, provided these terms “clearly and conspicuously convey that the product is not a mined stone.” However, the WFDB regards this provision with considerable apprehension, expressing concern that it grants “too much latitude” in the marketing claims that can be made by producers of lab-grown diamonds. Such broad discretion, the federation contends, could be exploited, leading to subtle ambiguities or even direct misrepresentations that obscure the fundamental distinction between natural and manufactured diamonds. The integrity of the entire diamond industry hinges upon absolute transparency and unambiguous labeling. Any ambiguity or lack of clear differentiation risks compromising the ability of consumers to make informed purchasing decisions, undermining the long-standing value proposition of natural diamonds, and potentially damaging the reputation of the industry as a whole.
Navigating the Nuances: Points of Commendation and Continued Disagreement
Despite its significant reservations, the WFDB also acknowledges and commends certain positive outcomes within the revised FTC guidelines. The federation expressed its appreciation for the FTC’s judicious decision to reject various proposals put forth by some diamond growers, which sought to include potentially misleading terms such as “[manufacturer-name]-grown,” “foundry,” “created,” and “grown” without further qualifying language. The WFDB maintains that these terms, if used without explicit clarification, could obscure the true origin of stones that are meticulously manufactured to order in a factory setting, blurring critical distinctions for consumers. Furthermore, the WFDB wholeheartedly endorses and welcomes the FTC’s unequivocal stipulation that any and all descriptors for non-mined diamonds must be absolutely clear, unambiguous, and prominently displayed to consumers at the point of sale. This commitment to overt transparency is a vital safeguard against misrepresentation. Most critically, the WFDB staunchly reiterates a fundamental and non-negotiable principle: a diamond offered for sale without any specific qualifying descriptors must, by universal understanding and industry convention, unequivocally signify a natural diamond. This core tenet is indispensable for preserving the integrity of distinct market segments, upholding consumer trust, and ensuring that purchasers are always fully aware of the precise nature and origin of the precious stones they acquire. The distinction is not merely semantic; it profoundly impacts consumer perception, market valuation, and the long-term sustainability of both the natural and lab-grown diamond sectors.
A Plea for Open Dialogue: Re-Thinking the Future of Diamond Terminology
In light of the complex implications of these revised guidelines, WFDB President Ernie Blom conveyed a hopeful and conciliatory tone, expressing, “We earnestly hope that the door remains open for ongoing dialogue, affording us the opportunity to re-engage with the FTC. Our aim is to present our comprehensive perspective and endeavor to persuade the organization to re-evaluate its decision.” This statement unequivocally underscores the WFDB’s unwavering commitment to collaborative problem-solving and its deep-seated belief that a more universally acceptable and truly effective framework can still be achieved through continued discussion. The federation’s objective in seeking further dialogue is not to obstruct regulatory efforts, but rather to refine them in a manner that genuinely serves the best interests of every stakeholder across the entire diamond value chain—from the miners and cutters to the manufacturers, retailers, and, critically, the end consumers who invest their trust and resources in these precious gems. The intricate dynamics of the modern diamond market, characterized by its fascinating blend of geological wonders and technological innovations, demand terminology that is not only legally robust but also intuitively clear, globally consistent, and impervious to misinterpretation. The WFDB’s appeal is a powerful call for a deeper, more inclusive consideration of established global industry standards and the paramount importance of unwavering consumer understanding, all geared towards fostering a resolution that will decisively strengthen the integrity and resilience of the diamond industry for generations to come.
About the World Federation of Diamond Bourses (WFDB): Guardians of Global Diamond Integrity
The World Federation of Diamond Bourses (WFDB) stands as an eminent and indispensable international organization, serving as the unifying body for 30 affiliated diamond bourses spanning across the globe. Since its inception, the WFDB has been meticulously built upon foundational principles of mutual trust, unwavering integrity, and exemplary ethical conduct, establishing itself as a pivotal force in the regulation, promotion, and advancement of the global diamond industry. Its expansive mission is meticulously multi-faceted, primarily focusing on the rigorous safeguarding of the collective and individual interests of its affiliated bourses and their esteemed members. This dedication ensures the perpetuation of a stable, transparent, and equitable trading environment that fosters confidence and reliability. Beyond its protective mandate, the WFDB actively champions and facilitates the amicable settlement or, when necessary, the formal arbitration of disputes that may regrettably arise either between individual members of the affiliated bourses or directly between the bourses themselves. This robust and impartial dispute resolution mechanism is absolutely critical for maintaining harmony, fostering efficiency, and preventing protracted conflicts within the often-complex and high-stakes world of international diamond trading, ultimately cultivating a pervasive spirit of cooperation and mutual respect.
In a broader and equally vital capacity, the WFDB acts as a dynamic and proactive participant in the vigorous promotion of legitimate world trade in diamonds. It actively encourages and supports the establishment of new diamond bourses, particularly in emerging markets, thereby strategically expanding the geographical reach and influential footprint of the global diamond network. Through these concerted efforts, the WFDB makes substantial contributions to economic development in diverse regions worldwide and ensures that the time-honored traditions, intricate processes, and unparalleled allure of diamond trading continue to not only survive but thrive and intelligently adapt within an ever-evolving and increasingly interconnected global landscape. The Federation provides an indispensable platform for open dialogue, collaborative initiatives, and the critical dissemination of best practices and cutting-edge insights among its vast membership, thereby fostering a collective strength and synergy that profoundly benefits the entire industry, from rough to retail.
Members who belong to WFDB-affiliated bourses are bound by a profound and solemn pledge: to steadfastly uphold, embody, and continuously promote the venerable traditions and the core, immutable principles of mutual trust, profound consideration, and enduring friendship that have historically formed the bedrock of relations among members of diamond bourses across the planet. This profound commitment extends far beyond mere passive adherence; it encompasses a sacred promise to diligently pass down these invaluable and guiding principles through successive generations, thus ensuring their vibrant perpetuation. They pledge, with unwavering conviction, that these foundational tenets will forever serve as the ethical and operational bedrock for all business relations conducted between members of affiliated bourses. This rigorous ethical framework is not merely a symbolic gesture; it forms the very intrinsic fabric of trust that underpins multi-million dollar transactions, cultivates long-term, fruitful partnerships, and secures the global reputation of the diamond trade. By meticulously maintaining such extraordinarily high standards of professional conduct and moral integrity, the WFDB ensures the continued credibility, desirability, and inherent value of diamonds as an unparalleled symbol of enduring beauty, timeless luxury, and unimpeachable integrity. In doing so, it vigilantly protects both the diverse array of industry stakeholders and the millions of discerning consumers globally who cherish and invest in these exquisite and precious stones. The WFDB’s staunch and principled advocacy for clear, consistent, and globally recognized diamond terminology, as vividly demonstrated in its compelling response to the FTC’s revised guidelines, is a direct and powerful reflection of this fundamental and overarching commitment to absolute transparency, unwavering trust, and the long-term, sustainable health of the entire global diamond industry.