FTC Revises Jewelry Guides to Reflect the Use of Base Metal Alloys in Platinum Jewelry In response to industry changes, the Federal Trade Commission today announced revisions to its Jewelry Guides to help ensure that consumers are not deceived when buying platinum products and that marketers understand how certain new platinum/metal alloys—products made of a combination of platinum and non-precious “base” metals—should be described and advertised.

In recent years, some marketers have added base metals, such as copper and cobalt, to platinum jewelry sold to consumers. While this has made jewelry marketed as “platinum” more affordable, it also has made buying it more complicated and increased the need to clarify how combination platinum/base metal alloy products should be marked and advertised to prevent deception.

In a Federal Register notice describing the changes to the Platinum Section of the FTC’s Guides for the Jewelry, Precious Metals, and Pewter Industries, the FTC states how marketers should mark or describe “platinum/base metal alloys,” which contain between 50 and 85 percent platinum.

Specifically, the new Platinum Section states that marketers of platinum/base metal alloys should: 1) disclose the product’s full composition, by name and not abbreviation, and the percentage of each metal it contains—for example, 75% platinum, 25% copper; or 60% platinum, 35% cobalt, 5% rhodium; and 2) disclose that the product may not have the same attributes or properties as traditional platinum products, which are comprised of at least 85 percent pure platinum.

The amendments further state that marketers need not make the second disclosure if they have competent and reliable scientific evidence that a product is materially the same as one containing at least 85 percent pure platinum, based on a variety of attributes such as durability, luster, and hypoallergenicity. The notice also provides background information on the FTC's review process, discusses the public comments received during the review, and describes how the Platinum Section has been updated. The updated Guides became effective on December 28, 2010, the date they were published in the Federal Register.

The FTC issued the Jewelry Guides and their Platinum Section to help manufacturers avoid making claims that are unfair or deceptive under the FTC Act. Industry guides are administrative interpretations of the law and are not independently enforceable. However, the FTC can take action under the FTC Act if a business makes marketing claims that are inconsistent with the Guides and it believes such claims are unfair or deceptive, in violation of the FTC Act.…

What are some advantages of the FTC's new policies?
What are some disadvantages of the FTC's new policies?

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