The Central Consumer Protection Authority (CCPA) will soon issue new guidelines to ensure transparency and accountability in the diamond industry, including mandatory certification, explicit labelling, and curbs on misleading trade practices, the agency said on Tuesday.

The announcement followed a stakeholder consultation chaired by CCPA chief commissioner Nidhi Khare.

The consultation brought together industry leaders and experts to address pressing concerns about the lack of standardised terminology and inadequate disclosure practices, particularly on the distinction between natural and lab-grown diamonds.

The proposed guidelines seek to require clear labelling of a diamond’s origin and production method, prohibit misleading descriptions such as “natural” or “genuine” for lab-grown diamonds, and establish accreditation standards for testing laboratories to counter unregulated entities.

Key regulatory provisions were reviewed during the consultation. Under the Legal Metrology Act, 2009, diamonds are measured in carats, each weighing 200 milligrams, ensuring uniformity in trade.

Meanwhile, the Bureau of Indian Standards (BIS) mandates that the term “diamond” can only describe natural diamonds, with synthetic counterparts requiring explicit labelling as “synthetic diamonds”. Such diamonds should not be graded alongside natural ones.

The Consumer Protection Act, 2019, further strengthens safeguards against unfair trade practices, mandating transparent labelling.

The Central Board of Indirect Taxes and Customs, through a recent circular, sought clear declaration of whether a diamond was natural or lab-grown, specifying the production method, such as Chemical Vapour Deposition or High-Pressure High-Temperature.

Participants at the consultation underscored the urgency of ethical marketing practices and consistent terminology. The CCPA statement noted that “a robust framework is critical to eliminate confusion and enhance trust in the diamond market.”