An earrings ad crosses FTC's legal line

The Jewelers Vigilance Committee (JVC) recently received an inquiry on an earrings advertisement that appeared in a local newspaper.

The ad boasted that the company's "laboratories" produced an "unflawed," "lab-created" diamond product that compared favorably to mined diamonds in terms of color and clarity, and in some ways, was superior to mined diamonds. The company's other marketing materials made similar claims.

The question before the JVC: Does such language violate the Federal Trade Commission's (FTC) Guides for the Jewelry, Precious Metals and Pewter Industries, also known as the "Jewelry Guides"?

As the JVC reviewed the advertising materials, a big question arose: What was the company selling? The references to labs and lab-created stones suggested synthetic diamonds, but it was unclear.

The JVC sent the company a letter, asking about the product, but received no response. JVC then purchased the featured earrings and examined both the product and the accompanying literature. Still stumped, the JVC took the jewelry to a respected, independent appraiser for analysis. The result: The mystery product was cubic zirconium (CZ).

From there, JVC's analysis was not complicated, as the FTC guides provide unambiguous direction on imitation and synthetic diamonds.

A synthetic diamond is man-made with pure carbon—the same chemical substance that turns into diamond when exposed in nature to extremely high pressure. While the natural process occurs either deep within the earth's lithospheric mantle, or at the site of a meteorite strike, the man-made process takes place above ground. Despite the difference in production, the laboratory-produced synthetic diamond has the same physical, chemical and optical properties as a natural diamond.

An imitation diamond, on the other hand, does not share the same physical properties as a natural diamond. It is a man-made simulant that resembles a diamond but is not made of carbon. Imitations are typically made of glass or plastic or, cubic zirconium. CZ is the cubic crystalline form of zirconium dioxide (ZrO2), a material that is hard, optically clear and usually colorless. While CZ does a good job of imitating a diamond, it is not a synthetic, and it is not a real diamond.

The differences between the natural, the synthetic and the imitation diamond are reflected in their value, with the imitation being the least expensive. Hence, the goal of the FTC guides is to ensure jewelry buyers are not misled.

Compliance also puts jewelers on a level field, with no one losing market share to exaggerated claims.

The FTC jewelry guides clearly define natural, synthetic and imitation diamonds
and lay down the rules for describing each to consumers in Section 23.23(c): "It is deceptive to use the word 'laboratory-created' to describe an imitation diamond."

What about using the word "unflawed" in ads? Again, the guides are clear. Section 23.26(c) states that it is deceptive to describe any imitation diamond as "flawless" or "perfect"—or anything else that conveys that meaning. So the CZ ad violates this section.

Analysis complete, the JVC contacted the company with its findings and explained that the violations exposed the company to legal action, not only by the FTC, but by competitors who could bring false advertising claims pursuant to the federal Lanham Act.

Now understanding the law, as well as the possible consequences, the company acted quickly. Working with the JVC, it amended its advertisements to be in compliance with the law. For a nominal fee, the company also bought copies of Buying Gemstones and Jewels with Confidence.

This JVC publication (copies of which are available via its Web site, JVCLegal.com) explains the meaning of "synthetic" and "imitation" and includes a description of various diamond treatments that can improve the appearance of a diamond, but also affect its value. These brochures were distributed to the company's employees and became part of its training materials.

To stay in compliance with laws relating to marketing, jewelers should maintain up-to-date information on all applicable regulations and make sure that employees are trained on relevant law. The JVC is there to help by providing general educational resources-as well as jeweler-specific advice.

Suzan R. Flamm, Esq., is assistant general counsel of the Jewelers Vigilance Committee (JVC). In an occasional series of articles, the JVC offers its advice on how industry members can avoid litigation in an effort to benefit the parties to a dispute, and the industry as a whole. The advice is strictly the opinion of the JVC.
Source: nationaljewelernetwork

Generic diamond promotional campaign heats up

At the recent IDMA meeting in Shanghai, China, industry members expressed interest in an international marketing campaign for diamonds.

Discussions on an international marketing campaign for diamonds got underway last week in Shanghai, China, at the biennial meeting of the International Diamond Manufacturers Association (IDMA).

Informally called the "global diamond manufacturing and promotion campaign," the goal of the effort is to bring together major industry players to establish a worldwide advertising scheme to promote diamond sales.

Jeffrey Fischer, president of Fischer Diamonds and immediate past president of the IDMA, said he was "very pleased" with the results of the meeting, which was held in conjunction with the 33rd World Diamond Congress.

He said all the appropriate parties— or "major players"—all expressed interest in the campaign.

The next meeting regarding this new marketing effort, which was the brainchild of the IDMA, is slated to take place in Mumbai, India, in September, around the time of the second annual Indo-U.S. Jewelry Business Relationship Development Conference, slated for Sept. 8-13.

Fischer said in choosing the next meeting location, they were looking for a location that was acceptable to all parties involved, and India offered to serve as host.

In addition to the marketing campaign kickoff, during the IDMA meeting, Israeli diamantaire Moti Ganz was elected president of the IDMA, replacing Fischer, who had served the limit of four years.

Ganz, who is also chairman of the Israel Diamond Institute, will serve a two-year term, with the possibility of being elected to a second term.
Source: nationaljewelernetwork

Nelly Maqdisi, an Ambassador for jewelry

Lebanese artist Nelly Maqdisi presented a new collection for a famous brand of jewelry in Dubai.

She also performed a number of her songs at the celebration that was held for the opening of a new branch for a famous international company in the Middle East. She performed in front of a number of well-known personalities in Dubai, members of the press, and representatives from the jewelry company.

According to the London daily Elaph, Nelly is very pleased to be the new face for the brand of jewelry brand in the Middle East, stating that advertising for a commercial brand adds to the accomplishment of an artist.
Source: albawaba

Model sues jewelry company, claiming commercial makes her look lewd

clipjunkie.com An image from the Szul Jewelry commercial which can be found on clipjunkie.com.

A model who says she has worked hard to maintain a wholesome image has filed a $5 million lawsuit complaining that a jewelry company's video advertisement( ) in which she writhes and moans looks pornographic.

The commercial, seen on the Internet in a clip entitled “Rock Her World,” shows a woman wearing blue lacy lingerie and a diamond necklace while moaning and stroking her face and neck. It ends with the Web address for the jewelry company, Szul.com.

The 37-year-old woman claims in her lawsuit that she did not “consent to or authorize the use of her likeness, picture, image or name to simulate a female having an orgasm or otherwise experiencing sexual pleasure.”

“Indeed, the music to the commercial is bump-and-grind burlesque type music, which further provides the advertisement with a decidedly pornographic look, feel and sound,” states the lawsuit, which was filed Monday in Manhattan's state Supreme Court.

The plaintiff, identified only as Jane Doe, says in court papers she won the role in the commercial for Szul Jewelry Inc. in November. She says the idea was that an average guy would get a woman excited by putting a necklace on her.

Three-fourths of the filming of the commercial, shot Nov. 9 by Q2 Entertainment in a studio in Queens, involved a comedic story line, but the woman later was told to sit and feign excitement for a few seconds while the young man put the necklace on her, the lawsuit says.

After that scene, the court papers say, the director told her to fake excitement while lying down, without smiling.

“He asked her to keep repeating the action until he thought he got the most authentic looking film piece,” they say.

The plaintiff, who is a married graduate student in elementary education, “has worked hard to project a wholesome image and has been extremely careful to avoid doing any work in the industry that would cheapen or tarnish her reputation,” the lawsuit states.

The lawsuit names Szul Jewelry, Q2 Entertainment and Q2 principal Mitchell Goldman as defendants. None of the defendants immediately responded to telephone messages seeking comment.

The woman is asking for $2.5 million in compensatory damages and $2.5 million in punitive damages.
Source: signonsandiego

Spot Runner Creates Jewelry Ads

Spot Runner, the Internet-based ad agency based in Los Angeles, formed a partnership with Stuller, a leading jewelry manufacturer and distributor, to create localized TV advertising campaigns for independent jewelry retailers.

A previous deal, with Diamond Promotion Service, aids jewelry store chains and other retailers craft local advertising campaigns.

Local jewelry businesses can access Spot Runner’s commercial production, media planning and buying services via either Spot Runner or Stuller. Retailers can customize an ad by uploading up to five images into an ad, such as pictures of Stuller-manufactured jewelry or pictures of local storefronts. The partners assert that using the Spot Runner template, local businesses can create and place an ad on channels as varied as CBS, HGTV or Bravo for as little as $1,500.
Source: multichannel