Guides For The Jewelry Industry
16 CFR Part 23 · Guides · in the Code of Federal Regulations 1980-1995 (16 annual editions)
Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.
Latest edition: Library of Congress, 1995 CFR · Earliest edition: 1980 CFR
Text (1995 edition, OCR)
§22.5
ric or any substantial damage to the
yarn or fabric itself. ‘“‘Seconds” shall
be considered as including all hosiery
which is not of first quality, does not
qualify as ‘“‘irregulars’’ and which con-
tains runs, obvious mends, irregular-
ities, substantial imperfections, or de-
fects in material, construction or fin-
ish.
(a) The marking of hosiery under this
section shall be made in a conspicuous
and non-deceptive manner with suffi-
cient permanency or indelibility to
carry through the channels of trade to
the ultimate consumer in a clearly leg-
ible condition. The words ‘‘irregulars’’
or “‘seconds’’ as the case may be shall
be set out distinctly by transfer or
other marking on the fabric of each
stocking, sock or other unit, whether
sold in pairs, threes or otherwise. In
addition, if the hosiery is packaged in
any manner so as to conceal the disclo-
sures required by this section then
such disclosures shall also be made on
such packaging in a conspicuous and
non-deceptive manner. The required
disclosures in advertising and other
promotional material that industry
products are ‘“‘irregulars’’ or ‘‘seconds,”
must also be made in a conspicuous
and non-deceptive manner. [Guide 4]
§22.56 Removal, obliteration, or alter-
ation of marks.
It is an unfair trade practice for any
manufacturer, converter, processor,
dyer, finisher, distributor, dealer, im-
porter or vendor, or person acting for
or in collusion with any concern or
vendor,
(a) To remove, obliterate, deface,
change, alter, conceal, or make illegi-
ble any information required by the
guides in this part to be disclosed on
industry products, without replacing
the same before sale, resale or distribu-
tion for sale with a proper mark meet-
ing the requirements of the guides in
this part; or
(b) To sell, resell, or distribute any
industry product without its being
marked and described in accordance
with the requirements of the guides in
this part.
NOTE: Hosiery which has been redyed shall
be re-marked in accordance with the require-
ments of the guides in this part. Hosiery
found to contain a false or deceptive mark,
16 CFR Ch. I (1-1-95 Edition)
or a mark contrary to the requirements of
the guides in this part, shall be re-marked in
accordance with the guides in this part.
[Guide 5]
$22.6 Size markings and designations.!
In connection with the sale or offer-
ing for sale of industry products, it is
an unfair trade practice:
(a) To mark or otherwise represent
any industry product as being of a cer-
tain size which is not in fact the true
and normal size thereof; or
(b) To alter the true and normal size
of industry products by stretching or
manipulation so as to deceive pur-
chasers or prospective purchasers as to
such size; or
.(c) To fail to disclose on industry
products the true and normal size
thereof when the failure to make such
disclosure has the capacity and tend-
ency or effect of deceiving purchasers
or prospective purchasers as to the size
of such products.
NOTE: So-called ‘‘stretch’’ hose (which is
represented as being suitable for more than
one size foot) should be marked so as to
clearly disclose the minimum and the maxi-
mum sizes for which such hose is in fact suit-
able, and the range should be limited to the
sizes which such hose will comfortably fit
without undue looseness or tension. [Guide 6]
PART 23—GUIDES FOR THE
JEWELRY INDUSTRY
Definitions.
Deception (general).
Misleading illustrations.
Misrepresentation as to origin and dis-
closure of foreign origin.
23.4 Misuse of terms “hand-made,” ‘‘hand-
polished,”’ etc.
23.5 Misrepresentation as to gold content.
23.6 Misrepresentation as to silver content.
23.7 Misuse of words ‘platinum,’ ‘“‘irid-
fum,’”’ “palladium,” “ruthenium,” “rho-
dium,” and “osmium”’.
23.8 Additional requirements relating to
quality marks.
23.9 Misuse of the word ‘‘diamond”’.
23.10 Misuse of word ‘‘perfect,”’ etc.
23.11 Misuse of term ‘‘blue white.”
23.12 Misuse of the term ‘‘properly cut,’’
etc.
1Commercial Standard CS 46-49, “Hosiery
Lengths and Sizes’’ is recognized as a proper
method to follow in determining measure-
ments and sizes of hosiery.
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Federal Trade Commission
23.13 Misuse of the words “brilliant” and
“full cut’’.
23.14 Misuse of the term “clean,” etc.
23.15 Misuse of the word “pearl’’.
23.16 Misuse of terms “cultured pearl,”
“cultivated pearl,” ‘‘seed pearl,’’ ‘‘Ori-
ental pearl,’’ “Oriental,” ‘natura,’ and
“kultured”.
23.17 Misrepresentation as to
pearls,
23.18 Deception as to precious and
semiprecious stones.
23.19 Misuse of words “ruby,” “sapphire,”
cultured
“emerald,” “topaz,” “stone,” “pirth-
stone,” etc.
23.20 Misuse of words “real,’’ “genuine,”
‘“natural,’’ etc.
23.21 Misuse of words “gem,” “reproduc-
tion,” “replica,” “synthetic,” etc.
APPENDIX TO PART 23—LISTING AND CLASSI-
FICATION OF GUIDES FOR CONVENIENT REF-
ERENCE BY INDUSTRY MEMBERS
AUTHORITY: Sec. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45.
Source: 44 FR 11185, Feb. 27, 1979, unless
otherwise noted.
$23.0 Definitions.
As used in the guides in this part, the
terms hereinafter set forth shall be un-
derstood to have the following mean-
ings:
Diamond. A diamond is a natural
mineral consisting essentially of pure
carbon crystalized in the isometric sys-
tem and is found in many colors. Its
hardness is 10; its specific gravity ap-
proximately 3.52; and it has a refrac-
tive index of 2.42.
Pearl. A calcareous concretion con-
sisting essentially of alternating con-
centric layers of carbonate of lime and
organic material formed within the
body of certain mollusks, the result of
an abnormal secretory process caused
by an irritation of the mantle of the
mollusk consequent on the intrusion of
some foreign body inside the shell of
the mollusk, or due to some abnormal
physiological condition in the mollusk,
neither of which has in any way been
caused or induced by man.
Cultured pearl. The composite product
created when a nucleus (usually a
sphere of calcareous mollusk shell)
planted by man inside the shell or in
the mantle of a mollusk is coated with
nacre by the mollusk.
Imitation pearl. A manufactured prod-
uct composed of any material or mate-
§ 23.2
rials which simulates in appearance a
pearl or cultured pearl.
$23.1 Deception (general).
(a) It is an unfair trade practice for
an industry member to sell or offer for
sale any industry product under any
representation, description, cir-
cumstance, or condition having the ca-
pacity and tendency or effect of deceiv-
ing purchasers or prospective pur-
chasers thereof as to the type, kind,
grade, quality, quantity, metallic con-
tent, size, weight, cut, color, character,
substance, durability, serviceability,
origin, price, value, preparation, pro-
duction, manufacture or distribution of
such industry product or which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public in any other mate-
rial respect.
(b) The inhibitions of this section are
applicable to all forms of advertising,
whether in periodicals, on the radio or
television, and whether written or oral,
and to any form of marking or labeling
of products or their containers. [Guide
V
$23.2 Misleading illustrations.
It is an unfair trade practice, in con-
nection with the offering for sale, sale,
or distribution of industry products, to
use, as part of any packaging material,
label, advertisement, or other sales
promotion matter, any visual represen-
tation, picture, illustration, diagram
or other depiction which, either alone
or in conjunction with any accompany-
ing words or phrases, has the capacity
and tendency or effect of misleading or
deceiving purchasers or prospective
purchasers concerning the type, kind,
grade, quality, quantity, metallic con-
tent, size, weight, cut, color, character
substance, durability, serviceability,
origin, preparation, production, manu-
facture, or distribution of any industry
product, or which has the capacity and
tendency or effect of misleading or de-
ceiving the purchasing or consuming
public in any material respect.
NOTE: Among practices inhibited by this
section are illustrations and depictions of
diamonds in greater than actual size without
a clear and conspicuous disclosure of the fact
that the illustrations or depictions are en-
largements, when the failure to make such
141
§ 23.3
disclosure has the capacity and tendency or
effect of deceiving purchasers or prospective
purchasers of such diamonds or any products
containing same. [Guide 2]
§23.3 Misrepresentation as to origin
and disclosure of foreign origin.
(a) It is an unfair trade practice to
misrepresent the place of origin, pro-
duction, or manufacture of industry
products or their components.
(b) It is an unfair trade practice to
offer for sale, sell, or distribute any in-
dustry product manufactured or pro-
duced in a foreign country, or any in-
dustry product containing a part or
parts manufactured or produced in a
foreign country, without affirmatively
and clearly disclosing thereon, or in
immediate conjunction therewith, by a
truthful and nondeceptive mark,
stamp, brand, or label, the country of
origin of such product or part, where
failure to so disclose the country of or-
igin has the capacity and tendency or
effect of misleading or deceiving the
purchasing or consuming public in any
material respect.
NOTE: Nothing in paragraph (b) of this sec-
tion shall be construed as requiring disclo-
sure as to the foreign origin of such small
and primarily functional parts as rivets,
screws, bolts, washers, springs, spring bars
and spring rings; or as to the foreign origin
of pearls, cultured pearls, diamonds, or any
other precious or semi-precious stones, or
glass insets which imitate precious or semi-
precious stones, when same are primarily ob-
tained from sources outside the United
States and its territories and possessions; or
as to the foreign origin of any other part or
parts which, by reason of further processing
in this country, no longer retain the appear-
ance and essential characteristics possessed
by them at the time of their importation.
Disclosure of the foreign origin of imitation
pearls which have not been subjected to
processing in this country to the extent of
losing the appearance and essential charac-
teristics possessed by them at the time of
their importation must be made though such
imitation pearls after importation have been
strung and made into necklaces in this coun-
try. [Guide 3]
§23.4 Misuse of terms “hand-made,”
“hand-polished,” etc.
(a) It is an unfair trade practice to
represent, directly or by implication,
that any industry product is hand-
made or hand-wrought unless the en-
tire shaping and forming of such prod-
16 CFR Ch. | (1-1-95 Edition)
uct from raw materials and its finish-
ing and decoration were accomplished
by hand labor and manually-controlled
methods which permit the maker to
control and vary the construction,
-shape, design, and finish of each part of
each individual product.
NOTE: As used here, “raw materials’’ in-
clude bulk sheet, strip, wire, and similar
items that have not been cut, shaped, or
formed into jewelry parts, semi-finished
parts, or blanks.
(b) It is an unfair trade practice to
represent, directly or by implication,
that any industry product is hand-
forged, hand-engraved, hand-finished,
or hand-polished, or has been otherwise
hand-processed, unless the operation
described was accomplished by hand
labor and manually controlled methods
which permit the maker to control and
vary the type, amount, and effect of
such operation on each part of each in-
dividual product. [Guide 4]
$23.5 Misrepresentation as to gold
content.
(a) It is an unfair trade practice to
sell or offer for sale any industry prod-
uct under any trade or product name or
designation or other representation
having the capacity and tendency or ef-
fect of deceiving purchasers or pro-
spective purchasers thereof as to the
presence of gold or gold alloy in the
product, or as to the quantity or
fineness of gold alloy contained in the
product, or as to the fineness, thick-
ness, weight ratio, or manner of appli-
cation of any gold or gold alloy plat-
ing, covering, or coating on any surface
of any industry product or part there-
of. ,
(b) The following practices are
among those to be regarded as inhib-
ited by paragraph (a) of this section:
(1) Use of the unqualified word
“Gold,” or any abbreviation thereof, as
descriptive of any industry product, or
part thereof, which is not composed
- throughout of fine (24 karat) gold.
(2) Use of the word ‘“‘Gold,”’ or any ab-
breviation thereof, as descriptive of
any industry product, or part thereof,
which is composed throughout of an
alloy of gold, unless a correct designa-
tion of the karat fineness of the alloy
immediately precedes the word ‘“‘Gold,”
or abbreviation thereof, and such
142
Federal Trade Commission
fineness designation is of at least equal
conspicuousness therewith.
(3) Use of the word “Gold,” or any ab-
breviation thereof, as descriptive of
any industry product, or part thereof,
which is not composed throughout of
gold or gold alloy, but is surface-plated
or coated with gold alloy, unless the
word “Gold,” or abbreviation thereof,
is so qualified as adequately and
nondeceptively to disclose that the
product or part is but surface-plated or
coated with an alloy of gold; and, when
such plating has been mechanically ap-
plied, unless such word “Gold,” or ab-
breviation thereof, is immediately pre-
ceded by a correct designation of the
karat fineness of the alloy and such
fineness designation is of at least equal
conspicuousness therewith.
NOTE: See acceptable forms of markings
and descriptions for such products set out in
paragraph (c)(2) of this section.
(4) Use of the terms “Gold Filled,”’
“Rolled Gold Plate,’’ ‘Rolled Gold
Plated,’’ ‘Gold Overlay,” ‘‘Gold Plat-
ed,” or “Gold Plate,’’ as descriptive of
any industry product or part thereof,
unless such product or part contains a
surface-plating of gold alloy applied by
a mechanical process which is of such
thickness and extent of surface cov-
erage that use of the term as descrip-
tive of the product or part will not
have the capacity and tendency of de-
ceiving purchasers or prospective pur-
chasers, and unless the term is imme-
diately preceded by a correct designa-
tion of the karat fineness of the alloy
and such designation is of at least
equal conspicuousness as the term
used.
NOTE: See acceptable forms of markings
and descriptions for such products set out in
paragraph (c)(2) of this section.
(5) Use of the term “Gold Electro-
plate,’’ or “Gold Electroplated,’’ as de-
scriptive of any industry product or
part thereof, unless such product or
part is plated or coated with gold or a
gold alloy and such plating or coating
is of such karat fineness, thickness,
and extent of surface coverage that the
use of the term will not have the ca-
pacity and tendency of deceiving pur-
chasers or prospective purchasers.
§23.5
NOTE: See acceptable forms of markings
and descriptions for such products set out in
paragraph (c)(3) of this section.
(6) Representing, directly or by im-
plication, by use of any name, termi-
nology, or otherwise, that an industry
product is equal or superior to, or dif-
ferent than, a known and established
type of industry product with reference
to its gold content or method of manu-
facture, unless the representation is
true in fact (namely, that it is equal or
superior to or different than the estab-
lished type in the respects represented
or implied).
NOTE 1: Requirements for use of the word
“Gold,” or any abbreviation thereof, as
above set forth, are applicable to
“Duragold,”’ ‘Diragold,” “Noblegold,”’
“Goldine,” or any words or terms of similar
import.
NOTE 2: See also §23.8 entitled ‘‘Additional
requirements relating to quality marks.”
(7) Use of the word ‘‘Gold,” or any ab-
breviation thereof, as descriptive of
any industry product, or part thereof,
which is composed throughout of an
alloy of gold of less than 10 karat
fineness.
(c) Markings and descriptions of in-
dustry products or parts thereof will be
considered as meeting the require-
ments of this section when in conform-
ity with the following:
(1) An industry product or part there-
of composed throughout of an alloy of
gold of not less than 10 karat fineness
may be marked and described as
“Gold”? when such word ‘‘Gold,’’ wheth-
er appearing, is immediately preceded
by a correct designation of the karat
fineness of the alloy and such karat
designation is of equal conspicuousness
as the word ‘Gold,’ (as, for example,
“14 Karat Gold,” and ‘14 K. Gold,”’ and
“14 Kt. Gold’’). Such product may also
be marked and described by a designa-
tion of the karat fineness of the gold
alloy unaccompanied by the word
“Gold” (as, for example, ‘14 Karat,”
“14 Kt.,”’ and “14 K.’’).
NOTE: When the term “Gold,” or any ab-
breviation thereof, is used as descriptive of
any product or part of a product which is
composed throughout of gold alloy but con-
tains a concealed hollow center or interior,
the term or its abbreviation shall also be im-
mediately accompanied by a disclosure of
the fact that the product or part contains a
143
§23.5
hollow center or interior (as, for example,
“14 Karat Gold-Hollow Center’ and ‘14 K.
Gold Tubing,’’ when of a gold alloy tubing of
such a karat fineness), when the failure to
make such disclosure has the capacity and
tendency or effect of deceiving purchasers or
prospective purchasers. Such products must
not be marked or described as ‘“‘solid’”’ or as
being solidly of gold or of a gold alloy. For
example, though the composition of such a
product is 14 karat gold alloy, it shall not be
described or marked as either ‘14 Kt. Solid
Gold” or as “‘Solid 14 Kt. Gold.”
(2) An industry product or part there-
of on which there has been affixed on
all significant surfaces, by soldering,
brazing, welding, or other mechanical
means, a plating of gold alloy of not
less than 10 karat fineness which is of
substantial thickness,1 may be marked
or described as “Gold Filled,” “Gold
Plate,” “Gold Plated,’’ ‘‘Gold Over-
lay,’’ ‘‘Rolled Gold Plate,” or adequate
abbreviations thereof, when such plat-
ing constitutes at least “oth of the
weight of the metal in the entire arti-
cle, and when the term is immediately
preceded by a designation of the karat
fineness of the plating which is of equal
conspicucusness as the term used (as,
for example, ‘14 Kt. Gold Filled,’ ‘14
Kt. G. F.,” “14 Kt. Gold Plated,” ‘14
Kt. G. P., ” and ‘14 Kt. Gold Overlay”’).
When conforming to all such require-
ments except the specified minimum of
¥oth of the weight of the metal in the
entire article, the terms ‘‘Gold Plate,”’
“Gold Plated,” ‘Rolled Gold Plate,”
and “Gold Overlay’? may be used when
the karat fineness designation is im-
mediately preceded by a fraction which
accurately discloses the portion of the
weight of the metal in the entire arti-
cle accounted for by the plating, and
when such fraction is of equal con-
spicuousness as the term used (as, for
example, ‘‘%o 12 Kt. Rolled Gold
Plate,’ and ‘‘Y%o 12 Kt. R. G. P.’’).
1As here used, the term “substantial
thickness” is to be construed as requiring
that all areas of the plating be of such thick-
ness as to assure of a durable coverage of the
base metal to which it has been affixed.
Since industry products embrace items hav-
ing surfaces and parts of surfaces which are
subject to different degrees of wear, this re-
quirement of substantial thickness may not
necessitate uniformity of thickness of plat-
ing for all items or for different areas of the
surface or surfaces of individual items.
16 CFR Ch. | (1-1-95 Edition)
(3) An industry product or part there-
of, all significant surfaces on which
there has been affixed by an electro-
lytic process a coating or plating of
gold, or of a gold alloy of not less than
10 karat fineness, the minimum thick-
ness throughout of which is equivalent
to 7/1,000,000ths of an inch of fine gold,
may be marked or described as ‘‘Gold
Electroplate”’ or ‘‘Gold Electroplated.”’
When the coating or plating meets the
minimum fineness, but not the mini-
mum thickness, above specified, the
marking or description may be ‘Gold
Flashed” or ‘‘Gold Washed,”’ and when
of the minimum fineness above speci-
fied ‘and of a minimum thickness
throughout which is equivalent to 100/
1,000,000ths of an inch of fine gold, the
marking or description may be ‘‘Heavy
Gold Electroplate’’ or ‘Heavy Gold
Electroplated.””> When coatings or
platings qualify for the term ‘Gold
Electroplate’’ (or “Gold Electro-
plated’’), or the term ‘“‘Heavy Gold
Electroplate’’ (or ‘‘Heavy Gold Electro-
plated’’), and have been applied by use
of a special kind of an electrolytic
process, the designation for which the
coating or plating is qualified may be
accompanied by an identification of
the process used, as for example, “Gold
Electroplated (X Process)’; ‘Heavy
Gold Electroplated (Y Process).”’
(d) The requirements of this section
relating to markings and descriptions
of industry products and parts thereof
are subject to the tolerances applicable
thereto under the National Stamping
Act (15 U.S.C.294, et seg.) and to the ex-
emptions applicable thereto under sec-
tion 10 of Commercial Standard CS 67-
38, relating to marking articles made
of karat gold, and under section 12(a) of
Commercial Standard CS 47-34 (includ-
ing supplement thereof effective Feb-
ruary 25, 1939), relating to marking of
- gold filled and rolled gold plate articles
other than watch cases.
(e) The exemption provisions of Com-
mercial Standard CS 67-38, mentioned
in paragraph (d) of this section, are as
follows:
10, Exemptions recognized in the jewelry
trade and not to be considered in any assay
for quality include springs, posts, and sepa-
rable backs of lapel buttons, posts and nuts
for attaching interchangeable ornaments,
and wire pegs or rivets used for applying
144
Federal Trade Commission
mountings and other ornaments, which
mountings or ornaments shall be of the qual-
ity marked.
(f) The exemption provisions of Com-
mercial Standard CS 47-34, mentioned
in paragraph (d) of this section, are as
follows:
12(a). Exemptions recognized in the jewelry
trade and not to be considered in any assay
for quality include joints, catches, screws,
pin stems, pins of scarf pins, hat pins, etc.,
field pieces and bezels for lockets, posts and
separate backs of lapel buttons, springs, and
metallic parts completely and permanently
encased in a nonmetallic covering. Field
pieces of lockets are those inner portions
used as frames between the inside edges of
the locket and the spaces for holding pic-
tures. Bezels are the separable inner metal
rings used to hold the pictures in place.
(Guide 5}
(44 FR 11185, Feb. 27, 1979; 44 FR 16004, Mar.
16, 1979]
§23.6 Misrepresentation as to silver
content.
(a) It is an unfair trade practice to
misrepresent in any way the silver con-
tent or fineness of silver content of any
industry product, or to represent such
product as having a silver content,
plating, electroplating, or coating,
when such is not the fact.?
2The requirements of this section relating
to markings and descriptions of industry
products and parts thereof are subject to the
tolerances applicable thereto under the Na-
tional Stamping Act (15 U.S.C. 294, et seq.)
and to the exemptions applicable thereto
under section 8 of Commercial Standard CS
118-44 (Marking of Jewelry and Novelties of
Silver), and section 8a) of Commercial
Standard CS 51-35 (Marking Articles Made of
Silver in Combination with Gold).
The exemption provisions of Commercial
Standard CS 118-44, above mentioned, are as
follows:
8. Exemptions: The only exemptions recog-
nized and not to be included in any assay for
quality include screws, rivets, springs, spring
pins for wrist watch straps; posts and sepa-
rable backs of lapel buttons; wire pegs, posts
and nuts used for applying mountings or
other ornaments, which mountings or orna-
ments shall be of the quality marked; pin
stems of badges, brooches, emblem pins, hat
pins, and scarf pins; levers for belt buckles;
and blades and skeletons of pocket knives.
The exemption provisions of Commercial
Standard CS 51-35, above mentioned, are as
follows:
§ 23.7
(b) It is an unfair trade practice to
mark, describe, or otherwise represent,
any industry product, or part thereof,
as ‘“‘silver,’’ “solid silver,” ‘“Sterling,’’
or “Sterling Silver,’’ unless it is at
least 925/1,000ths pure silver.
(c) It is an unfair trade practice to
mark, describe, or otherwise represent,
any industry product, or part thereof,
as “coin” or ‘‘coin silver,’’ unless it is
at least 900/1,000ths pure silver.
(d) It is an unfair trade practice to
apply the term ‘Sterling’ or ‘‘coin,’’
either alone or in conjunction with any
other word or words, in any manner to
a silver-plated article or to the plating
thereon.
(e) It is an unfair trade practice to
mark, describe, or otherwise represent,
any industry product, or part thereof,
as being plated or coated with silver,
unless all significant surfaces of the
product or part contain a plating or
coating of silver which is of substantial
thickness.
NOTE: See also §23.8 entitled ‘Additional
requirements relating to quality marks.”
{Guide 6]
$23.7 Misuse of words “platinum,”
“iridium,” “palladium,” “ruthe-
nium,” “rhodium,” and “osmium”.
It is an unfair trade practice to use
the words “platinum,” “iridium,” ‘“‘pal-
ladium,’’ “ruthenium,” ‘‘rhodium,’’ or
“osmium,”’ or any abbreviations there-
of, as a marking on, or as descriptive
of, any industry product or part there-
of, under any circumstance or condi-
tion having the capacity and tendency
or effect of deceiving purchasers or
prospective purchasers as to the true
composition of such product or part.
NOTE 1: Commercial Standard CS66-38, is-
sued by the National Bureau of Standards of
the U.S. Department of Commerce, covers
the marking of articles made wholly or in
part of platinum. Markings on industry prod-
ucts which are in compliance with the re-
quirements of CS66-38 will be regarded as
8a). Unless otherwise required by the Na-
tional Stamping Act, exemptions recognized
in the jewelry trade and not to be considered
in any assay for quality include joints,
catches, screws, pin stems, pins of scarf pins,
hat pins, etc., posts and separable backs of
lapel buttons, springs, and metallic parts
completely and permanently encased in a
nonmetallic covering.
145
§23.8
among those fulfilling the requirements re-
lating thereto which are contained in this
section.
NOTE 2: See also §23.8 entitled ‘‘Additional
requirements relating to quality marks.”
[Guide 7)
$23.8 Additional requirements relat-
ing to quality marks.
As used in this section, the term
“quality mark” means any letter, fig-
ure, numeral, symbol, sign, word, or
term, or any combination thereof,
which has been stamped, embossed, in-
scribed, or otherwise placed, on any in-
dustry product and which indicates or
suggests that any such product is com-
posed throughout of any precious
metal or any alloy thereof or has a sur-
face or surfaces on which there has
been plated or deposited any precious
metal or alloy thereof. Included are the
words ‘gold,’ “karat,” ‘‘carat,” ‘‘sil-
ver,” “sterling,” “platinum,” ‘“‘irid-
ium,”’ “palladium,” “ruthenium,”
“rhodium,”’ or “osmium,” or any ab-
breviation thereof, whether used alone
or in conjunction with the word
“filled,” “plated,” ‘“‘overlay,’’ ‘“‘electro-
plated,’’ or any abbreviation thereof.
Requirements of this section are addi-
tional to those provided for in §§23.5,
23.6, and 23.7.
(a) Deception as to applicability of
marks. (1) It is an unfair trade practice
to sell, offer for sale, or distribute any
industry product on which a quality
mark appears when by reason of the lo-
cation of such mark, the failure to con-
junctively identify the part or portion
of the product to which same is appli-
cable (or part or portion to which same
is inapplicable), or otherwise, such
mark has the capacity and tendency or
effect of deceiving purchasers or pro-
spective purchasers as to the metallic
composition of the product or any part
thereof.
(2) When a quality mark has proper
application but to one or more parts of
an industry product and not to another
part or parts thereof which are of simi-
lar surface appearance, each quality
mark should be closely accompanied by
an identification of the part or parts to
which the mark is applicable.
(b) Deception by reason of difference in
the size of letters or words in a marking or
markings. It is an unfair trade practice
to sell, offer for sale, or distribute any
16 CFR Ch. | (1-1-95 Edition)
industry product on which there ap-
pears a quality mark in which words or
letters appear in greater size than
other words or letters of the marking,
or when different markings placed on
the product have different applications
and are in different sizes, when any
such marking has the capacity, tend-
ency, or effect of deceiving purchasers
or prospective purchasers of the prod-
uct as to the metallic composition of
such product or any part thereof. (An
example of improper marking subject
to the inhibitions of this paragraph
would be the marking of a gold electro-
plated product with the word ‘“electro-
plate’? in small type and the word
“gold” in larger type, with the result
that purchasers and prospective pur-
chasers of the. product would observe
the word ‘gold’ of the marking and
unlikely observe the word “electro-
plate’’.)
NOTE 1: Legibility of markings. Quality
markings on industry products should be of
sufficient size type as to be legible to persons
of normal vision, and be so placed as likely
to be observed by purchasers or prospective
purchasers thereof. When such size marking
cannot be achieved without injury to the ap-
pearance of the article, a tag or label on
which the marking appears in type which is
readable by persons of normal vision should
be attached to the product and remain there-
on until consumer purchase.
NOTE 2: Disclosure of identity of manufactur-
ers, processors, or distributors. It is the consen-
sus of the members of this industry that all
quality markings on industry products
should be accompanied by the name, or other
adequate identification, of the manufac-
turer, processor, or distributor responsible
for such marking. Quality markings include
those in which the words or terms “gold,”
“karat,” “silver,” ‘“platinum’’ (or platinum
related metals), or their abbreviations, are
included, either separately or as suffixes,
prefixes, or syllables. (Guide 8]
§23.9 Misuse of the word “diamond”.
(a) In the sale, offering for sale, or
distribution of industry products, it is
an unfair trade practice for any indus-
try member to use the unqualified
word ‘‘diamond”’ as descriptive of, or as
an identification for, any object or
product not meeting the requirements
specified in the definitions of diamond
hereinabove set forth, or which, though
meeting such requirements, has not
146
Federal Trade Commission
been symmetrically fashioned with at
least seventeen (17) polished facets.
(b) The foregoing provisions of this
section have application to the un-
qualified use of the word “diamond.”
They are not to be construed as inhib-
iting:
(1) The use of the words ‘‘rough dia-
mond”’ as descriptive of, or as a des-
ignation for, uncut or unfaceted ob-
jects or products meeting the require-
ments specified in the mentioned defi-
nition of diamond; or
(2) The use of the word ‘‘diamond”’ as
descriptive of, or as a designation for,
objects or products meeting the re-
quirements of said definition of dia-
mond but which have not been sym-
metrically fashioned with at least sev-
enteen (17) polished facets when in im-
mediate conjunction with the word “‘di-
amond”’ there is either a disclosure of
the number of facets and shape of the
diamond or the name of a type of dia-
mond which denotes shape and which
usually has less than seventeen (17)
facets (e.g., ‘rose diamond’’).
Nore: Additional requirements relating to
imitation and synthetic diamond representa-
tions and misuse of words “reproduction,”
“replica,” “gem,” “real,” “genuine,” “natu-
ral,” etc., are set forth in §§23.19, 23.20 and
23.21. [Guide 9]
$23.10 Misuse of word “perfect,” etc.
(a) It is an unfair trade practice to
use the word “perfect,” or any other
word, expression, or representation of
similar import, as descriptive of any
diamond which discloses flaws, cracks,
carbon spots, clouds, or other blem-
ishes or imperfections of any sort when
examined in normal daylight, or its
equivalent, by a trained eye under a
ten-power, corrected diamond eye
loupe or other equal magnifier.
NOTE: The use, with respect to a stone
which is not perfect, of any phrase (such as
“commercially perfect’) containing the
word ‘“‘perfect’’ or ‘perfectly’ is regarded as
misleading and in violation of this section.
Paragraph (a) of this section shall not be
construed as approving the use of the word
“perfect,” or any word or representation of
like import, as descriptive of any diamond
that is of inferior color or make.
Nothing in this section is to be construed
as inhibiting the use of the word ‘‘flawless”’
as descriptive of a diamond which meets the
§ 23.13
requirements for ‘“‘perfect”’ set forth in para-
graph (a) of this section.
(b) It is an unfair trade practice, in
connection with the offering of any
ring or rings or other articles of jew-
elry having a perfect center stone or
stones, and side or supplementary
stones which are not of such quality, to
use the word ‘“‘perfect”’ without clearly
disclosing that such description applies
only to the center stone or center
stones. [Guide 10]
$23.11 Misuse of term “blue white”.
It is an unfair trade practice to use
the term “blue white,’’ or any other
term, expression, or representation of
similar import, as descriptive of any
diamond which under normal, north
daylight or its equivalent, shows any
color or any trace of any color other
than blue or bluish.
NOTE: For additional requirements respect-
ing artificially colored diamonds, see the
note immediately following §23.18 (Guide 11]
§23.12 Misuse of the term “properly
cut,” etc,
It is an unfair trade practice to use
the terms, “properly cut,” ‘‘proper
cut,” “modern cut,” ‘well made,’’ or
expressions of similiar import, to de-
scribe any diamond that is lopsided, or
so thick or so thin in depth as materi-
ally to detract from the brilliance of
the stone.
NOTE: This section prohibits the commonly
called “fisheye’’ or “old mine’ stone from
being offered as ‘‘properly cut,’’ ‘“‘modern
cut,” etc. (Guide 12]
$28.18 Misuse of the words “brilliant”
and “full cut”.
It is an unfair trade practice to use
the unqualified expressions ‘“‘brilliant,”
“brilliant cut,” or ‘full cut’? to de-
scribe, identify, or refer to any dia-
mond except a round diamond which
has at least thirty-two facets plus the
table above the girdle and at least
twenty-four facets below.
NOTE: Such terms should not be applied to
single or rose-cut diamonds, either with or
without qualification. They may be applied
to emerald (rectangular) cut, pear-shaped,
heart-shaped, oval-shaped, and marquise
(pointed oval) cut diamonds meeting the
above-stated facet requirements when, in im-
mediate conjunction with the term used, dis-
147
§23.14
closure is made of the fact that the diamond
is of such form. [Guide 13]
§23.14 Misuse of term “clean,” etc.
It is an unfair trade practice to use
the term ‘clean,’ ‘‘eye clean,’’ ‘“com-
mercially clean,” “commercially
white,’ or any other term, expression,
or representation of similar import, in
advertising, labeling, representing, or
describing any diamond, when such
terms are used for the purpose, or with
the capacity and tendency or effect, of
misleading or deceiving purchasers,
prospective purchasers, or the consum-
ing public. {Guide 14]
§23.15 ‘Misuse of the word “pearl”.
(a) It is an unfair trade practice to
use the unqualified word ‘‘pear],’’ or
any other word or phrase of like mean-
ing or connotation, to describe, iden-
tify, or refer to any object or product
which is not in fact a pearl as defined
hereinabove.
(b) It is an unfair trade practice to
. use the word “‘pear!’’ to describe, iden-
tify, or refer to a cultured pearl unless
it is immediately preceded, with equal
conspicuity, by the word ‘‘cultured’’ or
“cultivated,’’ or by some other word or
phrase of like meaning and connota-
tion, so as to indicate definitely and
clearly that the product is not a pearl.
(c) It is an unfair trade practice to
use the word ‘“‘pearl’’ to describe, iden-
tify, or refer to an imitation pearl] un-
less it is immediately. preceded, with
_ equal conspicuity, by the word ‘‘imita-
tion” or ‘‘simulated,”’ or by some other -
word or phrase of like meaning and
connotation, so as to indicate defi-
nitely and clearly that the product is
not a pear].
NOTE: The placing of an asterisk next to
the word ‘“‘pearl,’’ which asterisk makes ref-
erence to a footnote explanation of the fact
that the product is an imitation or cultured
pearl, is not regarded as compliance with the
requirements of this section. [Guide 15]
$23.16 Misuse of terms jooured
pearl,” “cultivated “seed
pearl,” ‘Driental pearl, otSrtental”
” an
(a) It is an unfair trade practice to
use the term “cultured pearl,” ‘“‘cul-
tivated pearl,” or any other word,
term, or phrase of like meaning or con-
16 CFR Ch. I (1-1-95 Edition)
notation, to describe, identify, or refer
to any imitation pearl.
(b) It is an unfair trade practice to
use the term ‘‘seed pearl,’ or any word,
term, or phrase of like meaning or con-
notation, to describe, identify, or refer
to any cultured pearl or imitation
pearl.
(c) It is an unfair trade practice to
use the term “Oriental pearl,” or any
word, term, or phrase of like meaning
or connotation, to describe, identify, or
‘refer to any product of the industry
other than a pearl taken from a salt
water mollusk and of the distinctive
appearance and type of pearls obtained
from mollusks inhabitating the Per-
sian Gulf and recognized in the jewelry
trade as Oriental pearls.
(d) It is an unfair trade practice to
use the word “Oriental’’ to describe,
identify, or refer to any cultured or
imitation pearl.
(e) It is an unfair trade practice to
use the word “natura,” or any word,
term, or phrase of like meaning or con-
notation, to describe, identify, or refer
to a cultured or imitation pear].
(f) It is an unfair trade practice to
use the word “kultured,” or any word,
term, or phrase of like meaning or con-
notation, to describe, identify, or refer
to an imitation pearl. [Guide 16]
§23.17 Misrepresentation as to cul-
tured pearls.
It is an unfair trade practice, in con-
nection with the distribution, sale, or
offering for sale of industry products,
to make, publish, or disseminate, or
cause to be made, published, or dis-
seminated, any false, misleading, or de-
ceptive statement, representation, or
illustration concerning the matter in
which cultured pearls are produced, the
size of the nucleus artificially inserted
in the oyster and included in cultured
pearls, the length of time that such
products remained in the oyster, the
thickness of the nacre coating, the
value and quality of cultured pearls as
compared with the value and quality of
pearls and imitation pearls or concern-
ing any other material matter relating
to the formation, structure, properties,
characteristics, and qualities of cul-
tured pearls.
NoTE: Additional requirements relating to
misuse of the words ‘‘real,” “genuine,” “nat-
148
Federal Trade Commission
ural,” “reproduction,” ‘replica,’ ‘‘syn-
thetic,” “gems,” etc., are set forth in §§23.20
and 23.21 (Guide 17]
$23.18 Deception as to precious and
semi-precious stones.
It is an unfair trade practice, in con-
nection with the offering for sale, sale,
or distribution of precious or semi-pre-
cious gem stones, to use or cause or
promote the use of any trade pro-
motional literature, advertising mat-
ter, mark, brand, label, trade name,
picture, design or device, or other type
of oral or written representation, how-
ever, disseminated or published, which
has the capacity and tendency or effect
of misleading or deceiving the purchas-
ing or consuming public in any other
material respect.
NOTE: One of the practices to be considered
as inhibited by this section is as follows: The
sale, or offering for sale, of any diamond or
other natural precious or semi-precious
stone which has been artificially colored or
tinted by coating, irradiating, or heating, or
by use of nuclear bombardment, or by any
other means, without disclosure of the fact
that such natural stone is colored, and dis-
close that such artificial coloring or tinting
is not permanent if such is the fact. (Guide
18)
$23.19 Misuse of words “ruby,” “sap-
phire,’ “emerald,” “topaz,” “stone,”
(a) It is an unfair trade practice to
use the unqualified words “ruby,”
“sapphire,” ‘‘emerald,”’ ‘“‘topaz,”’ or the
name of any other precious or semi-
precious stone, as descriptive of any
product which is not in fact a natural
stone of the type described.
(b) It is an unfair trade practice to
use the words “ruby,” ‘sapphire,’
“emerald,’’ “stone,” “birthstone,” or
the name of any other precious or
semi-precious stone, as descriptive of a
synthetic stone or an imitation or sim-
ulated stone unless such word or name
is immediately preceded, with equal
conspicuity, by the word ‘‘synthetic,”’
or by the word “imitation” or ‘‘simu-
lated,” whichever is applicable, ‘or by
some other word or phrase of like
meaning, so as clearly to disclose the
nature of such product and the fact
that it is not a natural stone.
NOTE: The placing of an asterisk next to
the word “stone” or “birthstone,” or the
§ 23.21
name of any natural stone referring to a
footnote explanation that the product is a
synthetic or imitation is not to be regarded
as compliance with the requirements of this
section. [Guide 19)
$23.20 Misuse of words “real,” “genu-
ine,” “natural,” etc.
It is an unfair trade practice to use
the words “real,”’ ‘‘genuine,” ‘“natu-
ral,’’ or similar terms, as descriptive of
any article or articles which are manu-
factured or produced synthetically or
artificially, or artificially cultured or
cultivated, with the capacity and tend-
ency or effect of misleading or deceiv-
ing purchasers, prospective purchasers,
or the consuming public. [Guide 20]
$23.21 Misuse of words “gem,” “repro-
duction,” “replica,” “synthetic,” etc.
(a) It is an unfair trade practice to
use the word “gem” or similar terms to
describe, identify, or refer to a pearl,
cultured pearl, diamond, ruby, sap-
phire, emerald, topaz, or other product
of the industry, which does not possess
the beauty, symmetry, rarity, and
value necessary for qualification as a
gem. .
(b) It is an unfair trade practice to
use the word ‘‘gem’’ as descriptive of
any synthetic industry product unless
the product meets the requirements of
paragraph (a) of this section and unless
such word is immediately accom-
panied, with equal conspicuity, by the
word “synthetic,” or by some other
word or phrase of like meaning, so as
clearly to disclose the fact that it is
not a natural gem.
NOTE: Use of the word ‘‘gem”’ with respect
to cultured pearls and synthetic stones
should be avoided since few cultured pearls
or synthetic stones possess the necessary
qualifications to properly be termed ‘‘gems.”
Imitation pearls, imitation diamonds, and
other imitation stones cannot be described
as ‘“‘gems’’ under any circumstances. Not all
diamonds or natural stones, including those
classified as precious stones, possess the nec-
essary qualifications to properly be termed
“gems.”
(c) It is an unfair trade practice to
use the words ‘“‘reproduction,’”’ “‘rep-
lica,” or similar terms, to describe,
identify, or refer to a cultured or imi-
tation pear], or to any imitation of pre-
cious or semi-precious stones.
149
Pt. 23, App.
(d) It is an unfair trade practice to
use the word “‘synthetic’’ as descriptive
of cultured or imitation pearls, or to
use the word “synthetic”? with the
name of any natural stone as descrip-
tive of any industry product, unless
such industry product has essentially
the same optical, physical, and chemi-
cal properties as the stone named.
(Guide 21]
APPENDIX TO PART 23—LISTING AND
CLASSIFICATION OF GUIDES FOR CON-
VENIENT REFERENCE BY INDUSTRY
MEMBERS
Category I. Guides in this part having ap-
plication to all industry products regardless
of their composition:
Sec.
23.1 Deception (general).
23.2 Misleading illustrations.
23.3 Misrepresentation as to origin and dis-
closure of foreign origin.
23.4 Misuse of terms ‘“‘hand-made,” “hand-
polished,” etc.
Category II. Guides in this part having ap-
plication to industry products composed in
whole or in part of a precious metal or met-
als:
23.5 Misrepresentation as to gold content.
23.6 Misrepresentation as to silver content.
23.7 Misuse of words “platinum,”’ “iridium,”
“palladium,” “ruthenium,”’ “rhodium,”
and ‘“‘osmium.”
23.8 Additional requirements relating to
quality marks.
Category 111. Guides in this part having ap-
plication to industry products containing
diamonds or imitations thereof:
23.9 Misuse of the word ‘“‘diamond.”’
23.10 Misuse of word “‘perfect,”’ etc.
23.11 Misuse of term ‘“‘blue white.”
23.12 Misuse of the term “‘properly cut,” etc.
23.13 Misuse of the words ‘“‘brilliant’? and
“full cut.”
23.14 Misuse of the term ‘‘clean,’’ etc.
NOTE: These guides also have application
to diamonds which are sold in the loose and
unset state.
Category IV. Guides in this part having ap-
plication to industry products containing
pearls, cultured pearls, or imitations thereof:
23.15 Misuse of the word “pearl.”
23.16 Misuse of terms “cultured pearl,” ‘“‘cul-
tivated pearl,” ‘‘seed pearl,’ “Oriental
pearl,” “Oriental,” ‘‘natura,” and
“kultured.”’
23.17 Misrepresentation as to cultured pearls.
NOTE: These guides also have application
to pearls, cultured pearls, and imitation
16 CFR Ch. | (1-1-95 Edition)
pearls sold in the loose (unstrung and unset)
state.
Category V. Guides in this part having ap-
plication to industry products containing ru-
bies, sapphires, and emeralds and other pre-
cious or semi-precious stones, and synthetic
and imitation stones:
23.18 Deception as to precious and semi-pre-
cious stones.
23.19 Misuse of words “‘ruby,” “sapphire,”
“emerald,” “topaz,” “stone,” “birth-
stone,” etc.
23.20 Misuse of words “real,” “genuine,”
“natural,’’ etc.
23.21 Misuse of words “gem,” “reproduc-
tion,”’ “‘replica,”’ ‘‘synthetic,” etc.
Nore: Industry products covered by the
guides in Categories II through V are also
subject to the guides in Category I.
PART 24—GUIDES FOR THE LUG-
GAGE AND RELATED PRODUCTS
INDUSTRY
Sec.
24.0 Definitions.
24.1 Deception (general).
24.2 Deception as to composition.
24.3 Deceptive practices as to aniline finish,
graining, embossing and processing.
24.4 Deception as to hardware, frame or box.
24.5 Misuse of the terms ‘‘waterproof,”
“dustproof,” ‘“‘warpproof,” ‘‘scuffproof”’
and ‘“‘scratchproof’’.
AUTHORITY: Secs. 6, 5, 38 Stat. 721, 719, 15
U.S.C. 46, 45.
Source: 44 FR 11190, Feb. 27, 1979, unless
otherwise noted.
$24.0 Definitions.
Industry member. Any person, firm,
corporation or organization engaged in
the manufacture, sale or distribution
of any industry products as defined
below.
Industry products. Industry products
consist of all kinds and type of trunks,
suitcases, traveling bags, sample cases,
instrument cases, brief cases, ring
binders, billfolds, wallets, key cases,
coin purses, card cases, french purses,
dressing cases, stud boxes, tie cases,
jewel boxes, travel kits, gadget bags,
camera bags, and similar articles, of
any composition. Ladies’ handbags are
not included.
$24.1 Deception (general).
It is an unfair trade practice to sell,
offer for sale, or distribute industry
150