CCPA set to bring in regulatory framework for diamond industry, introduce accreditation for testing labs

The Central Consumer Protection Authority (CCPA) highlighted issues like misleading terminology and inadequate disclosure practices in the diamond sector. The new guidelines will mandate clear labelling, ban deceptive terms and introduce accreditation for diamond testing labs

Mumbai: The Central Consumer Protection Authority (CCPA) announced recently that it will soon release guidelines to protect the interest of consumers in the diamond industry. The upcoming regulatory framework will include measures such as clear labelling and certification of all diamonds, ensuring consumers are informed about the origin and production methods of their purchase.

The announcement follows a stakeholder consultation on consumer protection in the diamond sector, which was chaired by Nidhi Khare, Chief Commissioner of the CCPA. The meeting addressed critical issues, particularly the lack of standardized terminology and insufficient disclosure practices in the industry. These gaps, according to the CCPA, have led to confusion and deceptive practices, especially regarding the distinction between natural and lab-grown diamonds.

Industry representatives at the meeting unliterally reached a consensus on the need for ethical marketing and consistent terminology to better protect consumers. As part of the proposed guidelines, the CCPA will require clear labelling and certification of diamonds, specifying their origin and production method. Terms such as “natural” or “genuine” will be banned for lab-grown diamonds, to prevent misleading claims. Additionally, the CCPA will introduce accreditation systems to regulate and standardize diamond testing laboratories, reducing the influence of unregulated entities.

The CCPA emphasized that the consultation marks a significant step toward creating a more transparent, ethical and consumer-focused diamond market. The new framework is expected to be released soon, ensuring greater accountability and protection for consumers in the diamond industry.


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