Updated Disclosure Guidelines for Lab Diamond Retailers

The Ministry of Consumer Affairs has released comprehensive guidelines for lab-grown diamond retailers, mandating clearer disclosure practices to ensure complete transparency for consumers purchasing synthetic diamonds.

Key Regulatory Changes

• Mandatory use of terms 'Lab-Grown' or 'Synthetic' in all marketing materials
• Prohibition of terms like 'Real' or 'Genuine' when referring to lab diamonds alone
• Required disclosure of growth method (CVD or HPHT) on certificates
• Minimum font size requirements for disclosure text in advertisements
• Online marketplace compliance for product listings and descriptions

Implementation Timeline

The new guidelines take effect from September 1, 2025, with a 90-day grace period for existing inventory and marketing materials. Retailers have until December 1, 2025, to ensure full compliance with all disclosure requirements.

Penalties for non-compliance include fines ranging from ₹50,000 to ₹5 lakhs, with repeat offenders facing suspension of retail licenses. The Consumer Protection Authority will conduct random audits to ensure adherence to the new standards.

Industry Response

Major lab-grown diamond retailers have welcomed the guidelines, stating that clear disclosure practices will build greater consumer confidence and legitimize the synthetic diamond market. Several leading brands have already begun implementing the new requirements ahead of the official deadline.