tribute any industry product on which there appears a quality mark in which words or letters appear in greater size than other words or letters of the marking, or when different markings placed on the product have different applications and are in different sizes, when any such marking has the capacity, tendency, or effect of deceiving purchasers or prospective purchasers of the product as to the metallic composition of such product or any part thereof. (An example of improper marking subject to the inhibitions of this paragraph would be the marking of a gold electroplated product with the word “electroplate” in small type and the word "gold" in larger type, with the result that purchasers and prospective purchasers of the product would observe the word "gold" of the marking and unlikely observe the word "electroplate".)

NOTE: Legibility of markings. Quality markings on industry products should be of sufficient size type as to be legible to persons of normal vision, and be so placed as likely to be observed by purchasers or prospective purchasers thereof. When such size marking cannot be achieved without injury to the appearance of the article, a tag or label on which the marking appears in type which is readable by persons of normal vision should be attached to the product and remain thereon until consumer purchase.

NOTE: Disclosure of identity of manufacturers, processors, or distributors. It is the consensus of the members of this industry that all quality markings on industry products should be accompanied by the name, or other adequate identification, of the manufacturer, processor, or distributor responsible for such marking. Quality markings include those in which the words or terms "gold," “karat,” “silver," "platinum" (or platinum related metals), or their abbreviations, are included, either separately or as suffixes, prefixes, or syllables.)

§ 23.26 Misuse of the word "diamond."

(a) In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any industry member to use the unqualified word "diamond" as descriptive of, or as an identification for, any object or product not meeting the requirements specified in the definitions of diamond hereinabove set forth, or which, though meeting such requirements, has not been symmetrically fashioned with at least seventeen (17) polished facets.

(b) The foregoing provisions of this section have application to the unquali

fied use of the word "diamond." They are not to be construed as inhibiting:

(1) The use of the words "rough diamond" as descriptive of, or as a designation for, uncut or unfaceted objects or products meeting the requirements specified in the mentioned definition of diamond; or

(2) The use of the word "diamond" as descriptive of, or as a designation for, objects or products meeting the requirements of said definition of diamond but which have not been symmetrically fashioned with at least seventeen (17) polished facets when in immediate conjunction with the word "diamond" there is either a disclosure of the number of facets and shape of the diamond or the name of a type of diamond which denotes shape and which usually has less than seventeen (17) facets (e. g., "rose diamond").

NOTE: Additional requirements relating to imitation and synthetic diamond representations and misuse of words "reproduction," "replica," "gem," "real," "genuine," "natural," etc., are set forth in §§ 23.37, 23.38, and 23.39.

§ 23.27 Misuse of word "perfect," etc.

(a) It is an unfair trade practice to use the word "perfect," or any other word, expression, or representation of similar import, as descriptive of any diamond which discloses flaws, cracks, carbon spots, clouds, or other blemishes or imperfections of any sort when examined in normal daylight, or its equivalent, by a trained eye under a ten-power, corrected diamond eye loupe or other equal magnifier.

NOTE: The use, with respect to a stone which is not perfect, of any phrase (such as "commercially perfect") containing the word "perfect" or "perfectly" is regarded as misleading and in violation of this section.

Paragraph (a) of this section shall not be construed as approving the use of the word "perfect," or any word or representation of like import, as descriptive of any diamond that is of inferior color or make.

Nothing in this section is to be construed as inhibiting the use of the word "flawless" as descriptive of a diamond which meets the requirements for "perfect" set forth in paragraph (a) of this section.

(b) It is an unfair trade practice, in connection with the offering of any ring or rings or other articles of jewelry having a perfect center stone or stones, and side or supplementary stones which are not of such quality, to use the word "perfect" without clearly disclosing that such

description applies only to the center stone or center stones.

§ 23.28

Misuse of term "blue white."

It is an unfair trade practice to use the term "blue white," or any other term, expression, or representation of similar import, as descriptive of any diamond which under normal, north daylight or its equivalent, shows any color or any trace of any color other than blue or bluish.

NOTE: For additional requirements respecting artificially colored diamonds, see the note immediately following § 23.36.

§ 23.29 Misuse of the term "properly cut," etc.

It is an unfair trade practice to use the terms, "properly cut," "proper cut," "modern cut," well made," or expressions of similar import, to describe any diamond that is lopsided, or so thick or so thin in depth as materially to detract from the brilliance of the stone.

NOTE: This section prohibits the commonly called "fisheye" or "old mine" stone from being offered as "properly cut," "modern cut," etc.

§ 23.30 Misuse of the words "brilliant" and "full cut."

It is an unfair trade practice to use the unqualified expressions "brilliant," "brilliant cut," or "full cut" to describe, identify, or refer to any diamond except a round diamond which has at least thirty-two facets plus the table above the girdle and at least twenty-four facets below.

NOTE: Such terms should not be applied to single or rose-cut diamonds, either with or without qualification. They may be applied to emerald- (rectangular) cut, pearshaped, heart-shaped, oval-shaped, and marquise- (pointed oval) cut diamonds meeting the above-stated facet requirements when, in immediate conjunction with the term used, disclosure is made of the fact that the diamond is of such form.

chasers, prospective purchasers, or the consuming public.

§ 23.32 Misrepresentation of weight, "total weight."

(a) It is an unfair trade practice to misrepresent the weight of any diamond or to deceive purchasers or prospective purchasers as to the weight of any diamond.

NOTE: The standard unit for designation of the weight of a diamond is the carat, which is equivalent to two hundred miligrams (% gram). While advertisements may state the range of weights of a group of products, all weight representations regarding individual products shall be subject to a 1/200th of a carat (one-half "point") tolerance.

(b) It is an unfair trade practice to state or otherwise represent the weight of all diamonds contained in a ring or other article of jewelry unless such weight figure is accompanied with equal conspicuity by the words "total weight," or words of similar import, so as to indicate clearly that the weight shown is that of all stones in the article and not that of the center or largest stone.

§ 23.33 Misuse of word "pearl.”

(a) It is an unfair trade practice to use the unqualified word "pearl," or any other word or phrase of like meaning or connotation, to describe, identify, or refer to any object or product which is not in fact a pearl as defined hereinabove.

(b) It is an unfair trade practice to use the word "pearl" to describe, identify, or refer to a cultured pearl unless it is immediately preceded, with equal conspicuity, by the word "cultured" or "cultivated," or by some other word or phrase of like meaning and connotation, so as to indicate definitely and clearly that the product is not a pearl.

(c) It is an unfair trade practice to use the word "pearl" to describe, identify, or refer to an imitation pearl unless it is immediately preceded, with equal conspicuity, by the word "imitation" or "simulated," or by some other word or phrase of like meaning and connotation, so as to indicate definitely and clearly that the product is not a pearl.

NOTE: The placing of an asterisk next to the word "pearl," which asterisk makes reference to a footnote explanation of the fact that the product is an imitation or cultured pearl, is not regarded as compliance with the requirements of this section.

§ 23.34 Misuse of terms "cultured pearl," "cultivated pearl," "seed pearl," "Oriental pearl,” “Oriental,” "natura," and "kultured."

(a) It is an unfair trade practice to use the term "cultured pearl," "cultivated pearl," or any other word, term, or phrase of like meaning or connotation, to describe, identify, or refer to any imitation pearl.

(b) It is an unfair trade practice to use the term "seed pearl," or any word, term, or phrase of like meaning or connotation, to describe, identify, or refer to any cultured pearl or imitation pearl.

(c) It is an unfair trade practice to use the term "Oriental pearl," or any word, term, or phrase of like meaning or connotation, to describe, identify, or refer to any product of the industry other than a pearl taken from a salt water mollusk and of the distinctive appearance and type of pearls obtained from mollusks inhabiting the Persian Gulf and recognized in the jewelry trade as Oriental pearls.

(d) It is an unfair trade practice to use the word "Oriental" to describe, identify, or refer to any cultured or imitation pearl.

(e) It is an unfair trade practice to use the word “natura,” or any word, term, or phrase of like meaning or connotation, to describe, identify, or refer to a cultured or imitation pearl.

(f) It is an unfair trade practice to use the word "kultured," or any word, term, or phrase of like meaning or connotation, to describe, identify, or refer to an imitation pearl.

§ 23.35 Misrepresentation as to cultured pearls.

It is an unfair trade practice, in connection with the distribution, sale, or offering for sale of industry products, to make, publish, or disseminate, or cause to be made, published, or disseminated, any false, misleading, or deceptive statement, representation, or illustration concerning the matter in which cultured pearls are produced, the size of the nucleus artificially inserted in the oyster and included in cultured pearls, the length of time that such products remained in the oyster, the thickness of the nacre coating, the value and quality of cultured pearls as compared with the value and quality of pearls and imitation pearls or concerning any other material matter relating to the formation, structure,

properties, characteristics, and qualities of cultured pearls.

NOTE: Additional requirements relating to misuse of the words "real," "genuine," "natural," "reproduction," "replica," "synthetic," "gems," etc., are set forth in §§ 23.38 and 23.39.

§ 23.36

Deception as to precious and semi-precious stones.

It is an unfair trade practice, in connection with the offering for sale, sale, or distribution of precious or semi-precious gem stones, to use or cause or promote the use of any trade promotional literature, advertising matter, mark, brand, label, trade name, picture, design or device, or other type of oral or written representation, however disseminated or published, which has the capacity and tendency of effect of misleading or deceiving the purchasing or consuming public in any other material respect.

NOTE: One of the practices to be considered as inhibited by this section is as follows: The sale, or offering for sale, of any diamond or other natural precious or semi-precious stone which has been artificially colored or tinted by coating, irradiating, or heating, or by use of nuclear bombardment, or by any other means, without disclosure of the fact that such natural stone is colored, and disclosure that such artificial coloring or tinting is not permanent if such is the fact.

§ 23.37 Misuse of words "ruby," "sapphire," "emerald," "topaz," "stone," "birthstone,” etc.

66

(a) It is an unfair trade practice to use the unqualified words "ruby," "sapphire," "emerald," "topaz," or the name of any other precious or semi-precious stone, as descriptive of any product which is not in fact a natural stone of the type described.

(b) It is an unfair trade practice to use the words "ruby," "sapphire," "emerald," "stone," "birthstone," or the name of any other precious or semiprecious stone, as descriptive of a synthetic stone or an imitation or simulated stone unless such word or name is immediately preceded, with equal conspicuity, by the word "synthetic," or by the word "imitation" or "simulated," whichever is applicable, or by some other word or phrase of like meaning, so as clearly to disclose the nature of such product and the fact that it is not a natural stone.

NOTE: The placing of an asterisk next to the word "stone" or "birthstone," or the name

of any natural stone referring to a footnote explanation that the product is a synthetic or imitation is not to be regarded as compliance with the requirements of this section.

§ 23.38

Misuse of words "real," "genuine," "natural," etc.

It is an unfair trade practice to use the words "real," "genuine," "natural," or similar terms, as descriptive of any article or articles which are manufactured or produced synthetically or artificially, or artificially cultured or cultivated, with the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public.

§ 23.39 Misuse of words "gem," "reproduction," "replica," "synthetic," etc. (a) It is an unfair trade practice to use the word "gem" or similar terms to describe, identify, or refer to a pearl, cultured pearl, diamond, ruby, sapphire, emerald, topaz, or other product of the industry, which does not possess the beauty, symmetry, rarity, and value necessary for qualification as a gem.

(b) It is an unfair trade practice to use the word "gem" as descriptive of any synthetic industry product unless the product meets the requirements of paragraph (a) of this section and unless such word is immediately accompanied, with equal conspicuity, by the word "synthetic," or by some other word or phrase of like meaning, so as clearly to disclose the fact that it is not a natural gem.

NOTE: Use of the word "gem” with respect to cultured pearls and synthetic stones should be avoided since few cultured pearls or synthetic stones possess the necesary qualifications to properly be termed "gems." Imitation pearls, imitation diamonds, and other imitation stones cannot be described as "gems" under any circumstances. Not all diamonds or natural stones, including those classified as precious stones, possess the necessary qualifications to properly be termed "gems."

(c) It is an unfair trade practice to use the words "reproduction," "replica," or similar terms, to describe, indentify, or refer to a cultured or imitation pearl, or to any imitation of precious or semiprecious stones.

(d) It is an unfair trade practice to use the word "synthetic" as descriptive of cultured or imitation pearls, or to use the word "synthetic" with the name of

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GROUP I

§ 24.1 Inducing breach of contract.

Maliciously inducing or attempting to induce the breach of existing contracts between competitors and their customers by any false or deceptive means whatsoever, or interfering with or obstructing the performance of any such contractual duties or services by any such means, with the purpose and effect of unduly hampering, injuring, or embarrassing competitors in their businesses, is an unfair trade practice.

§ 24.2 Imitation of trade-marks, trade

names, etc.

The imitation of the trade-marks, trade names, slogans, or other marks of identification of competitors, having the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice.

§ 24.3 Defamation of competitors.

The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations, with the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice.

§ 24.4 Disparagement of competitors' goods.

The false disparagement of the weight, substance, strength, grade, or quality of the goods of competitors, with the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice.

§ 24.5 Misrepresentation in general.

The making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any product of the industry having the tendency and capacity to mislead or deceive purchasers or prospective purchasers is an unfair trade practice.

§ 24.7 Sales below cost.

The selling of goods below cost with the intent and with the effect of injuring a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or to