Disclosure of artificial or synthetic products

The Federal Trade Commission has sent warning letters to eight companies insisting that they clearly and conspicuously disclose that diamonds that they sell have been synthesized in laboratories and are not mined, even though there is no physical or chemical difference between natural and synthetic diamonds (natural diamonds may contain impurities). At least one of the letters was sent to Diamond Foundry, a California company.

Generally, the Federal Trade Commission Act requires disclosure of products made in a way that makes them less desirable to consumers, even though there is no physical basis for the consumer perception. Mined diamonds generally are considered more desirable and command higher prices than synthetic diamonds.