In November 2024, the Central Consumer Protection Authority (CCPA), which functions under the Ministry of Consumer Affairs, Food and Public Distribution, organized a stakeholder consultation, chaired by CCPA Chief Commissioner Nidhi Khare, on consumer protection in the diamond sector – the meeting centred around using appropriate terminology for diamonds, particularly Lab-Grown Diamonds (LGDs).

A statement issued by the Ministry said the meeting “addressed critical concerns regarding the lack of standardized terminology and inadequate disclosure practices in the diamond sector.” It added, “These gaps have resulted in consumer confusion and misleading practices, especially concerning the differentiation between natural diamonds and lab-grown diamonds.” 

Shorn of verbiage, what this boils down to is that the government is considering a proposal to officially term LGDs as “synthetic diamonds”. The proposal has sparked a debate in the lab-grown segment of the Indian diamond industry, which holds that the term “synthetic” carries a negative connotation. LGDs are marketed as an eco-friendly and ethical alternative to mined diamonds, and LGD manufacturers and retailers fear that the proposed terminology could undermine these advantages, and hurt consumer perception.

Vidita Kochar, Co-founder, Kolkata-based Jewelbox, a prominent LGD player, speaks at length about the proposal, and elaborates upon why the LGD segment of the diamond industry opposes such a move. Excerpts:
 

Indian Jeweller (IJ): What exactly has CCPA said regarding LGDs that is problematic for the sector?

Vidita Kochar (VK): The Central Consumer Protection Authority (CCPA) recently held a stakeholder consultation to discuss consumer protection measures within the diamond sector, where a key point of discussion was the appropriate labelling and certification of LGDs, particularly whether the term "synthetic" should be applied to these products.

The terminology recommended by the CCPA, if not carefully framed, risks conflating LGDs with simulants like cubic zirconia, leading to consumer confusion. This misrepresentation undermines the legitimacy and value of LGDs, which are chemically and physically identical to natural diamonds. Unlike simulants, which are typically lower in cost and authenticity, LGDs are created using advanced technology, and are identical to their mined counterparts in all key characteristics. Labelling them as "synthetic" risks misleading consumers by implying inferior quality, when, in fact, LGDs are a genuine alternative to mined diamonds.

Industry players, including Jewelbox, have emphasized the importance of transparent labelling and accurate terminology, such as "lab-created" or "man-made" diamonds, to differentiate LGDs from diamond lookalikes. Consumer trust is the cornerstone of the sector, and clear communication is critical to safeguarding it while driving sustainable growth.

IJ: Has the LGD segment of the industry held any meeting with the authorities regarding the terminology?

VK: Jewelbox, along with a few other brands in the segment, has submitted a letter stating our concerns to CCPA. The focus remains on ensuring fair representation, and avoiding misleading connotations that could affect consumer perception and industry growth.

IJ: LGD stakeholders say they promote sustainable luxury. But they come in for criticism for overstating the ethical advantages of LGDs. Sections of the industry say that LGDs consume a lot of energy. How would you counter this?

VK: Sustainability and ethical practices are at the core of our philosophy. While it is true that LGD production requires energy, the overall environmental footprint is significantly lower, compared to mined diamonds. Lab-grown diamonds avoid land degradation, water wastage, and the disruption of ecosystems associated with traditional mining. Moreover, many LGD producers are investing in renewable energy sources and innovative technologies to further reduce energy consumption. 

IJ: Do you use certification or grading systems to validate LGDs?

VK: We believe that quality assurance and consumer confidence go hand in hand. All our lab-grown diamonds are certified by internationally recognized grading institutions such as International Gemological Institute (IGI) and Solitaire Gemological Laboratories (SGL). These certifications evaluate the same criteria applied to mined diamonds – cut, clarity, color, and carat. This guarantees that our customers receive diamonds of the highest quality, validated by trusted third-party experts. Certification not only reinforces the credibility of our products, but also empowers our customers to make purchases with confidence and clarity.