U.S. jewelers oppose FTC proposal to broaden use of ‘platinum’ designation

Several U.S. jewelry groups say an FTC proposal to broaden the definition of "platinum" to include platinum and base metals alloys will mislead and confuse jewelry buyers.

RENO, NV - 

An effort by the Federal Trade Commission (FTC) to broaden the use of the word "platinum" to include an alloy combining platinum with base metals has drawn strong objections from a number of jewelers.

The agency's proposal revises the Guides for the Jewelry, Precious Metals and Pewter Industries (Jewelry Guides) to allow the use of the word platinum to describe an alloy of at least 500 parts per thousand (ppt) platinum alloyed with base metals. The FTC Platinum Guide has not been revised since 1997.

However, the FTC now suggests that the product's full composition by name and percentage of each metal to be used in a jewelry piece be specified as well. If the product does not have the same attributes as platinum jewelry containing at least 850 ppt, that information must also be disclosed to the consumer.

The Jewelers Vigilance Committee (JVC), Manufacturing Jewelers and Suppliers of America (MJSA), Jewelers of America (JA) and the American Gem Society (AGS) filed a joint response with the FTC Monday urging that "the current Platinum Guide should be retained and clarified and a supplement added to address descriptions of platinum and non-PGM alloys." Members of these associations represent manufacturers, wholesalers, distributors, precious metal suppliers and refiners, diamond dealers, colored gemstone dealers, and retailers.  

In their response, the associations said they welcome new products to the marketplace that blend platinum with base metals, but the use of the word "platinum to describe alloys containing non-PGM "creates the risk of deception."

The group argued that by permitting the word "platinum" to be used to describe these products, "a system that facilitates potentially deceptive representations is created that cannot be resolved by a complex disclose of the composition of the alloy." They suggested that many consumers who buy platinum products "equate platinum with purity."

The associations asserted that recent studies reveal that "reasonable consumer is unlikely to comprehend information about alloy content. Thus, the suggested disclosures are the equivalent of no disclose at all. Further, the practical impediments required to make these disclosures means that the consumer will likely not receive the information. The result will be consumers who believe that they are buying high-content platinum products - and they are not."

"Simply telling a consumer that a lower-purity engagement ring made not have the same attributes as a ring made of traditional platinum delivers no useful information," the associations claimed. "A consumer could easily buy a ring without understanding that it may not hold a diamond as well, or might tarnish, or may not be hypoallergenic."

They also suggested that "the average jewelry salesperson would be hard pressed to deliver this information. ...At the retail level, the jewelry workforce is not equipped to take on this complex metallurgical disclosure. In many cases they simply will not provide the information, or will provide wrong information."

The associations are asking the FTC to ban the use of the word "platinum" for alloys containing both platinum and base metals. "Adopting this approach will benefit consumers by providing a clear and easily understood signal distinguishing these two very different alloys."

The associations said a product now marketed as "platinum" has an almost pure precious metals content of either 850 parts per thousand pure platinum, or at least 500 ppt pure platinum alloyed with at least 450 ppt PGM. "As a result, traditional platinum products are costly, as platinum and other PGMs are rare, expensive, and highly desirable."

The associations also urged the FTC to establish standards, similar to those used in gold, for platinum plated products.

In a statement to the FTC, Michael Akkaoui, President and CEO of Tanury Industries, which specializes in platinum plating, said no reliable industry standards have been created to test and substantiate representations regarding the durability, luster, density, scratch and tarnish resistance, ability to resize and repair, and the hypoallergenicity of platinum attributes.

He urged the FTC to allow the use of the words "platinum plate" or "electroplate" only when all significant surface are composed at of least 950 parts per thousand pure platinum. Akkaoui also suggested that platinum plate or electroplate should be no less than .125 microns of at least 950 ppt pure platinum.

When the thickness of platinum plating is less than .125 micros, Akkaoui said the product should be described as "platinum flashed" or "platinum washed."

If the thickness of the platinum plating is no less than .5 micros, Akkaoui said the product may be described as "heavy platinum electroplate."

SUBSCRIBE to Mineweb.com's free daily newsletter now.

Print story      Email story      Subscribe to free newsletter

Back