Guides for the Jewelry, Precious Metals, and Pewter Industries, 10190-10199 [E8-3594]
Download as PDF
<![CDATA[
10190
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
revealed that the occurrence was caused by
a loose bolt of the ‘‘V’’ shape airbrake
bellcrank, named hereafter intermediate
control lever. The Left Hand (LH) wing lever
also presented, to a lesser extent, a loose bolt.
This AD requires inspection of the LH and
RH wing airbrake intermediate control levers
for loose attaching bolts and subsequent
repetitive inspections and corrective actions,
as necessary. As a terminating action,
replacement of the bolts and their associated
washers is required.
These actions are intended to address the
identified unsafe condition so as to prevent
loss of the airbrake control system which
could result in an inadvertent forced landing
with consequent sailplane damage and/or
passenger injury.
Requirements Retained From AD 2008–02–
09
(f) Do the following unless already done:
(1) Within 10 days after February 1, 2008
(the effective date of AD 2008–02–09),
inspect the left-hand (LH) and the right-hand
(RH) wing airbrake intermediate control
levers for loose attaching bolts following
Allstar PZL Glider Sp. z o. o. Service Bulletin
No. BE–059/SZD–50–3/2007 ‘‘PUCHACZ,’’
dated October 15, 2007.
(2) Before further flight after the inspection
required in paragraph (f)(1) of this AD, if any
loose bolt is found, replace the split helical
spring lock washers with tab washers and
replace the M8x34 bolts with M8x32 bolts on
both wings following Allstar PZL Glider Sp.
z o. o. Service Bulletin No. BE–059/SZD–50–
3/2007 ‘‘PUCHACZ,’’ dated October 15, 2007.
After doing this replacement, no further
action is required by this AD.
jlentini on PROD1PC65 with PROPOSALS
New Requirements of This AD: Actions and
Compliance
(g) If no loose bolts are found in the initial
inspection required in paragraph (f)(1) of this
AD, repetitively inspect thereafter at intervals
not to exceed 100 hours time-in-service (TIS)
or 12 months, whichever occurs first, until
you are required to do the replacement in
paragraph (h) or (i) of this AD. Do the
inspection following Allstar PZL Glider Sp.
z o. o. Service Bulletin No. BE–059/SZD–50–
3/2007 ‘‘PUCHACZ,’’ dated October 15, 2007.
(h) If any loose bolt is found during any
inspection required in paragraph (g) of this
AD, before further flight replace the split
helical spring lock washers with tab washers
and replace the M8x34 bolts with M8x32
bolts on both wings following Allstar PZL
Glider Sp. z o. o. Service Bulletin No. BE–
059/SZD–50–3/2007 ‘‘PUCHACZ,’’ dated
October 15, 2007. After doing this
replacement, no further action is required by
this AD.
(i) Within the next 1,000 hours TIS after
the effective date of this AD, replace the split
helical spring lock washers with tab washers
and replace the M8x34 bolts with M8x32
bolts on both wings following Allstar PZL
Glider Sp. z o. o. Service Bulletin No. BE–
059/SZD–50–3/2007 ‘‘PUCHACZ,’’ dated
October 15, 2007. After doing this
replacement, no further action is required by
this AD.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
FAA AD Differences
Note: This AD differs from the MCAI and/
or service information as follows: No
differences.
Other FAA AD Provisions
(j) The following provisions also apply to
this AD:
(1) Alternative Methods of Compliance
(AMOCs): The Manager, Standards Office,
FAA, has the authority to approve AMOCs
for this AD, if requested using the procedures
found in 14 CFR 39.19. Send information to
ATTN: Greg Davison, Aerospace Engineer,
FAA, Small Airplane Directorate, 901 Locust,
Room 301, Kansas City, Missouri 64106;
telephone: (816) 329–4130; fax: (816) 329–
0409. Before using any approved AMOC on
any airplane to which the AMOC applies,
notify your appropriate principal inspector
(PI) in the FAA Flight Standards District
Office (FSDO), or lacking a PI, your local
FSDO.
(2) Airworthy Product: For any requirement
in this AD to obtain corrective actions from
a manufacturer or other source, use these
actions if they are FAA-approved. Corrective
actions are considered FAA-approved if they
are approved by the State of Design Authority
(or their delegated agent). You are required
to assure the product is airworthy before it
is returned to service.
(3) Reporting Requirements: For any
reporting requirement in this AD, under the
provisions of the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.), the Office of
Management and Budget (OMB) has
approved the information collection
requirements and has assigned OMB Control
Number 2120–0056.
Related Information
(k) Refer to MCAI European Aviation
Safety Agency (EASA) Emergency AD No.
2007–0275–E, dated October 24, 2007; and
Allstar PZL Glider Sp. z o. o. Service Bulletin
No. BE–059/SZD–50–3/2007 ‘‘PUCHACZ,’’
dated October 15, 2007, for related
information.
Issued in Kansas City, Missouri, on
February 20, 2008.
Patrick R. Mullen,
Acting Manager, Small Airplane Directorate,
Aircraft Certification Service.
[FR Doc. E8–3579 Filed 2–25–08; 8:45 am]
BILLING CODE 4910–13–P
FEDERAL TRADE COMMISSION
16 CFR Part 23
Guides for the Jewelry, Precious
Metals, and Pewter Industries
Federal Trade Commission
(FTC or Commission).
ACTION: Request for public comment on
a proposed amendment to the platinum
section of the Guides for the Jewelry,
Precious Metals, and Pewter Industries.
AGENCY:
SUMMARY: The Commission is seeking
comments on a proposed amendment to
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
the platinum section of the FTC’s
Guides for the Jewelry, Precious Metals,
and Pewter Industries, 16 CFR part 23.
The amendment provides guidance on
how to mark or describe nondeceptively products containing at least
500 parts per thousand, but less than
850 parts per thousand, pure platinum
and no other platinum group metals.
The Commission is also seeking
comment on whether the Guides for the
Jewelry, Precious Metals, and Pewter
Industries should be revised to provide
guidance on how to mark or describe
platinum-clad, filled, plated, or overlay
products.
DATES: Written comments must be
received on or before May 27, 2008.
ADDRESSES: Interested parties are
invited to submit written comments.
Comments should refer to ‘‘Jewelry
Guides, Matter No. G711001’’ to
facilitate the organization of comments.
A comment filed in paper form should
include this reference both in the text
and on the envelope, and should be
mailed or delivered, with two copies, to
the following address: Federal Trade
Commission/Office of the Secretary,
Room 135-H (Annex E), 600
Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. If the comment
contains any material for which
confidential treatment is requested, it
must be filed in paper (rather than
electronic) form, and the first page of
the document must be clearly labeled
‘‘Confidential.’’1 The FTC is requesting
that any comment filed in paper form be
sent by courier or overnight service, if
possible, because U.S. postal mail in the
Washington area, and at the
Commission, is subject to delay due to
heightened security precautions.
Because U.S. postal mail is subject to
delay due to heightened security
measures, please consider submitting
your comments in electronic form.
Comments filed in electronic form
(except comments containing any
confidential material) should be
submitted by clicking on the following:
https://secure.commentworks.com/ftcjewelry and following the instructions
on the web-based form. To ensure that
the Commission considers an electronic
comment, you must file it on the webbased form at https://secure.
commentworks.com/ftc-jewelry. If this
1 Commission Rule 4.2(d), 16 CFR 4.2 (d). The
comment must be accompanied by an explicit
request for confidential treatment, including the
factual and legal basis for the request, and must
identify the specific portions of the comment to be
withheld from the public record. The request will
be granted or denied by the Commission’s General
Counsel, consistent with applicable law and the
public interest. See Commission Rule 4.9(c), 16 CFR
4.9(c).
E:\FR\FM\26FEP1.SGM
26FEP1
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
Notice appears at https://
www.regulations.gov, you may also file
an electronic comment through that
website. The Commission will consider
all comments that regulations.gov
forwards to it.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives,
whether filed in paper or electronic
form. Comments will be available to the
public on the FTC website, to the extent
practicable, at https://www.ftc.gov. As a
matter of discretion, the FTC makes
every effort to remove home contact
information for individuals from the
public comments it receives before
placing those comments on the FTC
website. More information, including
routine uses permitted by the Privacy
Act, may be found in the FTC’s privacy
policy at https://www.ftc.gov/ftc/
privacy.htm.
FOR FURTHER INFORMATION CONTACT:
jlentini on PROD1PC65 with PROPOSALS
Robin Rosen Spector, Attorney, (202)
326-3740, or Janice Podoll Frankle,
Attorney, (202) 326-3022, Division of
Enforcement, Bureau of Consumer
Protection, Federal Trade Commission,
600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580.
SUPPLEMENTARY INFORMATION:
I. Introduction
The Guides for the Jewelry, Precious
Metals, and Pewter Industries (‘‘Jewelry
Guides’’ or ‘‘Guides’’) address claims
made about precious metals, diamonds,
gemstones, and pearl products. 16 CFR
part 23. The Jewelry Guides provide
guidance on how to avoid making
deceptive claims and, for certain
products, discuss when disclosures
should be made to avoid unfair or
deceptive trade practices. The
Commission is seeking public comment
on Section 23.7 of the Jewelry Guides,
which addresses claims for platinum
products.
Industry guides are administrative
interpretations of the application of
Section 5 of the FTC Act, 15 U.S.C.
45(a). The Commission issues industry
guides to provide guidance for the
public to conform with legal
requirements. 16 CFR part 17. Failure to
follow industry guides may result in
corrective action under Section 5 of the
FTC Act. In any such enforcement
action, the Commission must prove that
the act or practice at issue is unfair or
deceptive.
Platinum products marketed as
‘‘platinum’’ typically contain at least
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
85% pure platinum or contain at least
50% pure platinum in combination with
other platinum group metals (‘‘PGM’’)
that total 95% PGM.2 During the last
few years, some manufacturers have
marketed products as ‘‘platinum’’ that
contain more than 50%, but less than
85%, pure platinum, and no other
PGM.3 In a Federal Register notice
published July 6, 2005 (‘‘2005 FRN’’),4
the Commission sought comment on
whether it should revise the platinum
section of the Jewelry Guides to address
such products. The comment period
closed October 12, 2005.
II. Background
The platinum section of the Jewelry
Guides contains a general statement
regarding the deceptive use of the term
‘‘platinum’’ (and other PGM) and
provides specific examples of
misleading and non-violative uses of the
term ‘‘platinum.’’5 Specifically, Section
7(a) of the Jewelry Guides states that it
is ‘‘unfair or deceptive to use the words
‘platinum,’ ‘iridium,’ ‘palladium,’
‘ruthenium,’ ‘rhodium,’ and ‘osmium,’
or any abbreviation to mark or describe
all or part of an industry product if such
marking or description misrepresents
the product’s true composition.’’ 16 CFR
23.7(a).
Section 7(b) provides examples of
markings or descriptions for products
containing platinum that may be
misleading:
(1) Use of the word ‘‘Platinum’’ or any
abbreviation, without qualification, to
describe all or part of any industry
product that is not composed
throughout of 950 parts per thousand
pure Platinum.
(2) Use of the word ‘‘Platinum’’ or any
abbreviation accompanied by a number
indicating the parts per thousand of
pure Platinum contained in the product
without mention of the number of parts
per thousand of other PGM contained in
the product, to describe all or part of an
industry product that is not composed
throughout of at least 850 parts per
thousand pure platinum, for example,
‘‘600Plat.’’
(3) Use of the word ‘‘Platinum’’ or any
abbreviation thereof, to mark or describe
any product that is not composed
2 The Platinum Group Metals include platinum,
iridium, palladium, ruthenium, rhodium, and
osmium.
3 We are aware that some companies are selling
similar products but marketing them under names
other than ‘‘platinum.’’
4 70 FR 38834 (July 6, 2005).
5 On April 8, 1997 (62 FR 16669), the
Commission published the current platinum section
of the Jewelry Guides. The Commission revised this
section as part of a comprehensive review of all of
the provisions of the Guides.
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
10191
throughout of at least 500 parts per
thousand pure Platinum.
16 CFR 23.7(b).
Section 7(c) includes the following
four examples of markings and
descriptions that are not considered
unfair or deceptive:
(1) The following abbreviations for
each of the PGM may be used for quality
marks on articles . . . [section lists the
two-letter and four-letter abbreviations
for the PGM].
(2) An industry product consisting of
at least 950 parts per thousand pure
Platinum may be marked or described as
‘‘Platinum.’’
(3) An industry product consisting of
850 parts per thousand pure Platinum,
900 parts per thousand pure Platinum or
950 parts per thousand pure Platinum
may be marked ‘‘Platinum,’’ provided
that the Platinum marking is preceded
by a number indicating the amount in
parts per thousand of pure Platinum. .
. . Thus, the following markings may be
used: ‘‘950Pt.,’’ ‘‘950Plat.,’’ ‘‘900Pt.,’’
‘‘900Plat.,’’ ‘‘850Pt.,’’ or ‘‘850Plat.’’
(4) An industry product consisting of
at least 950 parts per thousand PGM,
and of at least 500 parts per thousand
pure Platinum, may be marked
‘‘Platinum,’’ provided that the mark of
each PGM constituent is preceded by a
number indicating the amount in parts
per thousand of each PGM, as for
example, ‘‘600Pt.350Ir.,’’
600Plat.350Irid.,’’ ‘‘550Pt.350Pd.50Ir.,’’
or ‘‘550Plat.350Pall.50Irid.’’
16 CFR 23.7(c).
On December 15, 2004, Karat
Platinum, a jewelry manufacturer,
requested an opinion from the FTC staff
regarding the application of the Jewelry
Guides to a product called ‘‘Karat
Platinum’’ consisting of 585 parts per
thousand (‘‘ppt’’) pure platinum and
415 ppt copper and cobalt (non-precious
metals).6 The request stated that the
company’s reading of the Guides
indicated that the platinum section did
not prohibit marking or describing the
product as ‘‘Platinum’’ and that the
Guides did not address how to mark or
describe an alloy with this composition
other than to require that any
representation be truthful and not
misrepresent the product’s composition.
The staff posted this request on the
FTC’s website on December 17, 2004
and invited the industry to provide
comments by January 5, 2005.7 The staff
6 The request for a staff opinion and the staff’s
response to that request can be found at
www.ftc.gov/os/statutes/jewelry/letters/
karatplatinum.pdf and www.ftc.gov/os/statutes/
jewelry/letters/karatplatinum002.pdf, respectively.
7 The staff later extended the comment period
until January 10, 2005.
E:\FR\FM\26FEP1.SGM
26FEP1
10192
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
received sixteen comments from jewelry
trade associations and retailers.8
On February 2, 2005, the staff
responded to the request for an opinion
stating:
The Guides provide that, in order for
a product to be marked or described
as ‘‘platinum,’’ the product must
contain a minimum of 500 ppt pure
platinum. 16 CFR § 23.7(b)(3). In
addition, the Guides provide that, if a
product contains 500 ppt pure
platinum but less than 850 ppt pure
platinum, the marketer must disclose
the amount in ppt of the remaining
PGM in the product. 16 CFR
§ 23.7(b)(2).
In our opinion, a literal reading of the
Guides indicates that they do not
address the marketing of the Karat
Platinum alloy, except to the extent
that they require a minimum of 500
ppt pure platinum. The provisions of
Section 23.7 that address misuse of
the word ‘‘platinum’’ do not discuss
how to mark or describe an alloy that
contains over 500 ppt pure platinum
but no other PGM.
The staff letter further explained that
the marketing of the Karat Platinum
alloy would be subject to Section 23.1
of the Guides, which contains a general
statement on deception, as well as
Section 5 of the FTC Act.9
The letter stated that the staff
considered ‘‘this alloy to be sufficiently
different in composition from products
consisting of platinum and other PGM
to require clear and conspicuous
disclosure of the differences.’’ The staff
letter also stated that it did not appear
‘‘that simple stamping of the jewelry’s
content (e.g., 585 Plat., 0 PGM) would
be sufficient to alert consumers to the
differences between the Karat Platinum
alloy and platinum products containing
other PGM.’’
Because of the public interest in this
issue, on July 6, 2005, the Commission
issued a Federal Register notice
soliciting public comment regarding
whether it should revise the Guides to
address products composed of at least
500 ppt, but less than 850 ppt, pure
platinum and no other PGM. The
Commission received comments
through the extended October 12, 2005
deadline.10
Additionally, the notice stated that
the staff had received some inquiries
regarding the application of the
platinum section of the Guides to the
marketing of platinum-clad or platinumcoated jewelry products. The platinum
section of the Guides currently does not
address platinum-clad, filled, plated, or
overlay products. Other sections of the
Guides, however, address gold and
silver-plated jewelry products.11 These
sections generally advise that the
plating must be of a sufficient thickness
to ensure reasonable durability. The
2005 FRN, therefore, also sought
comment regarding whether the Guides
should provide guidance on how to
mark or describe non-deceptively
platinum-clad, filled, coated, or overlay
jewelry products. The Commission
received several comments with regard
to this issue stating that there is a need
for guidance for platinum-coated or
plated products with respect to the
thickness of the coating and the purity
of the platinum.12 Because these
comments did not propose specific
guidance, this Federal Register notice is
seeking such guidance with regard to
platinum-clad, filled, coated, and
overlay jewelry products.
III. Response to June 2005 Notice
Seeking Comment on the Platinum
Section of the Jewelry Guides
A. Summary of Comments
The FTC received 62 comments in
response to the 2005 FRN. The FRN
requested comments on two main
issues—first, should the platinum
section of the Guides be amended to
address jewelry products containing at
least 500 ppt, but less than 850 ppt,
pure platinum and no other PGM
(‘‘platinum/base metal alloy’’); second,
if guidance is appropriate, what should
the guidance provide. With regard to the
first issue, the majority of the comments
recommend that the Commission revise
the Guides to include guidance
regarding appropriate markings or
descriptions for platinum/base metal
alloy jewelry products. A joint comment
from several jewelry trade associations13
70 FR 57807 (October 4, 2005).
16 CFR 23.4 and 23.6 (addressing goldplated, gold-filled, gold-overlay, gold-electroplated,
and silver-plated jewelry products).
12 The Jewelers Vigilance Committee, Platinum
Guild International, and a jeweler manufacturer
(Sasha Primak) state that there is a need for specific
guidance regarding the thickness of the coating or
plate and the purity of the platinum employed to
cover the base metal.
13 The associations include: Jewelers Vigilance
Committee, Manufacturing Jewelers and Suppliers
of America, Jewelers of America, and American
Gem Society.
10
jlentini on PROD1PC65 with PROPOSALS
11See
8 The Jewelers Vigilance Committee, Platinum
Guild International, Manufacturing Jewelers &
Suppliers of America, American Gem Society,
Jewelers of America, Sonny’s On Fillmore, Kwiat,
Inc., Cornell’s Jewelers, Michael Bondanza, Inc.,
PMI, Traditional Jewelers, Stanley Jewelers
Gemologist, Davidson & Licht, Henne Jewelers,
Johnson Matthey, and MJ Christensen submitted
comments.
9 Section 5 of the FTC Act prohibits deceptive
acts or practices, in or affecting commerce. 15
U.S.C. 45(a).
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
(hereinafter ‘‘JVC’’) states that
‘‘[i]ndustry members universally believe
that the Guides should be revised to
address products that contain 500-850
ppt pure platinum and no other PGM.
Since products employing this alloy
(and others) have become available,
clarity in marking and description
standards for these products is
needed.’’14 Similarly, a comment from
Platinum Guild International (‘‘PGI’’)
recommends that ‘‘the FTC amend the
Platinum Guides and provide for an
unambiguous and transparent
standard.’’15 The majority of the
comments from jewelry retailers support
the JVC and PGI recommendations.16
Karat Platinum’s comment takes a
contrary position. Karat Platinum
asserts that the Commission does not
need to amend the Guides because the
existing guidance in the platinum
section, combined with the staff opinion
letter issued in February 2005,17
adequately inform marketers how to
mark or describe such products.
With regard to the second issue,
commenters disagree about the guidance
the Commission should provide for the
marketing of platinum/base metal alloy
jewelry. The JVC and PGI comments
argue that the Commission should
revise the Guides to prohibit marketers
from marking or describing platinum/
base metal alloy jewelry as ‘‘platinum’’
entirely.18 JVC and PGI assert that
JVC comment at 3.
PGI comment at 24.
16 The following comments recommend that the
Commission revise the Guides to include guidance
regarding products contain 500 ppt, but less than
850 ppt, pure platinum and no other PGM: Kwiat;
Albert Malky, Inc.; John A. Green (Lux Bond &
Green); Loyd Stanley (Stanley Jewelers Gemologist);
JCK Publishing; Traditional Jewelers; Cathy
Carmendy, Inc.; Joan Mansbach (Mansbach
Creative); M. Fabrikant & Sons; Renee Moskowitz
(Harper’s Bazaar); Nessi Erkmenaoglu (Harper’s
Bazaar); Stephen Walker (Walker Metalsmiths, Inc.);
Lieberfarb, Inc.; Gemstones, Etc.; Saturn Jewels;
Kaiser Time, Inc.; Coge Design Group; Day’s
Jewelers; Stuller, Inc.; Harvey Rovinsky (Bernie
Robbins Fine Jewelry); JCM Designs, Inc., d/b/a
Judith Conway; Joseph Barnard (Bernie Robbins
Fine Jewelry); Jeff Cooper, Inc.; Alexander Primak
Jewelry, Inc.; Hearts on Fire Co.; Kirk Kara; Vogue
Magazine; Allan Freilich (Freilich Jewelers, Inc.);
Cede Schmuckdesign GmbH; Representative Henry
A. Waxman (writing on behalf of Martin Katz, Ltd.);
Grando, Inc.; Susan Eisen (Susan Eisen Fine Jewelry
and Watches); Zoltan David (Zoltan David Precious
Metal Art); and Brian Guymon.
17See supra note 6.
18 JVC comment at 4; PGI comment at 26. The
following additional comments support this
recommendation: Kwiat; Albert Malky, Inc.; John A.
Green (Lux Bond & Green); C.F. Kisner, Inc.; Loyd
Stanley (Stanley Jewelers Gemologist); JCK
Publishing; Dana Sergenian; Traditional Jewelers;
Cathy Carmendy, Inc.; Joan Mansbach (Mansbach
Creative); M. Fabrikant & Sons; Renee Moskowitz
(Harper’s Bazaar); Nessi Erkmenaoglu (Harper’s
Bazaar); Robert Rowe (Lucky Magazine); Lieberfard,
Inc.; Richard Krementz Gemstones; Saturn Jewels;
Kaiser Time, Inc.; Hank Siegel (Hamilton
14
15
E:\FR\FM\26FEP1.SGM
26FEP1
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS
platinum is not like gold, which
requires mixing with an alloy to make
it more durable for jewelry.19 Platinum
jewelry, JVC and PGI explain, has
always been produced as nearly pure or
combined with other PGM. JVC and PGI
state that alloys with non-PGM do not
share the same characteristics as pure
platinum or platinum alloyed with
PGM.20 These comments assert that
disclosure of the differences between
the two types of alloys would be
complicated and highly technical and
likely engender significant consumer
confusion and deception.21
As its primary support, PGI
commissioned a study from Thomas J.
Maronick, titled ‘‘Platinum Awareness
Study: An Empirical Analysis of
Consumers’ Perceptions of Platinum as
an Option in Engagement Ring Settings’’
(‘‘Maronick study’’). The Maronick
study polled 332 consumers, aged 21
through 34, who expect to become
engaged in the next 12 months. PGI also
submitted a 2003 marketing survey
conducted by Hall & Partners (‘‘Hall &
Partners study’’) that consisted of 600
online interviews of women (ages 18-34)
and men (ages 25-34). Additionally, PGI
submitted two tests evaluating
platinum/base metal alloys. The first
test, by Hoover & Strong, compared a
product that contained 59.2% platinum,
36.59% copper, 3.9% cobalt and trace
amounts of gold, silver, and nickel to
three products, one containing 950 ppt
pure platinum, one containing 950 ppt
palladium, and one containing 14 karat
white gold. The second test, by Daniel
Ballard of Precious Metals West,
evaluated the properties of three
different 585 ppt pure platinum/base
metal alloys. It does not appear that the
PGI tests evaluated a product identical
in composition to the Karat Platinum
platinum/base metal alloy.
The Maronick study concludes that
consumers expect a high level of purity
in a product marked ‘‘platinum.’’ The
majority of consumers surveyed stated
that they would expect a ring labeled
‘‘platinum’’ to contain 80% or more
Company); Vittorio Bassan (Stuart Moore, Ltd.);
Coge Design Group; Day’s Jewelers; Stuller, Inc.;
Harvey Rovinsky (Bernie Robbins Fine Jewelry);
JCM Designs, Inc., d/b/a Judith Conway; Joseph
Barnard (Bernie Robbins Fine Jewelry); Jeff Cooper,
Inc.; Alexander Primak Jewelry, Inc.; Hearts on Fire
Co.; Kirk Kara; Vogue Magazine; Allan Freilick
(Freilich Jewelers, Inc.); Cede Schmuckdesign
GmbH; Representative Henry A. Waxman (writing
on behalf of Martin Katz, Ltd.); Grando, Inc.; Susan
Eisen (Susan Eisen Fine Jewelry and Watches);
Zoltan David (Zoltan David Precious Metal Art);
Techform Advanced Casting Technology; Douglas
Liebman (Douglas M. Liebman, Inc.); Brian
Guymon; and Wayne Schenk.
19 JVC comment at 4; PGI comment at 16.
20 JVC comment at 7-8; PGI comment at 17-19.
21 JVC comment at 7; PGI comment at 15.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
pure platinum.22 The Maronick study
also reports that if a ring has 40% or
more non-PGM, over a third of the
consumers surveyed would not expect
the ring to be called ‘‘platinum.’’23 If the
ring does not have all of the properties
of pure platinum, more than 50%
percent of consumers polled would not
expect it to be called ‘‘platinum.’’24 The
study further reports that even if a
platinum product with 40% base metals
shared all the properties of pure
platinum products, 29% of consumers
would not expect the product to be
called ‘‘platinum.’’25
In addition, according to the study,
88% of consumers polled felt it was at
least somewhat important to know the
properties of a product before purchase
(two-thirds of these consumers felt it
was very important).26 The study further
concludes that the properties typically
associated with platinum are important
to most consumers’ purchasing
decisions. Specifically, between 60%
and 90% of consumers polled
responded that it was important to
know a jewelry product’s weight
(76.2%) and whether the product is
durable (93%), scratch and tarnish
resistant (89.8% and 90.5%,
respectively), able to be resized (82.2%),
and hypoallergenic (64.4%).27
To further support its position, PGI
refers to the Hall & Partners survey,
which reported that the majority of
consumers polled associate rarity,
strength, and purity with platinum
jewelry.28 These consumers also view
platinum as superior to other metals.29
The PGI and JVC comments assert
that, because consumers understand
platinum jewelry to be a pure or nearly
pure product, marking products with
lower amounts of pure platinum and no
other PGM as ‘‘platinum’’ is deceptive.30
JVC and PGI explain that consumers
believe that using the word ‘‘platinum’’
conveys that the product is pure and
contains the qualities consumers expect
from traditional platinum jewelry.
The PGI and JVC comments also
assert that consumers do not understand
numeric jewelry markings listing metal
content, such as 585Pt/0PGM or 585Pt./
415 Co.Cu., or the karat systems used for
gold markings.31 The Maronick study
PGI Comment, Attachment A, at Table 3.
23Id., Table 7.
24Id., Table 11.
25Id., Table 8.
26Id., Table 12.
27Id., Table 13.
28 PGI Comment, Attachment B, at 16, 28.
29Id. at 15, 25.
30 JVC comment at 7-8; PGI comment at 17-19.
31 PGI comment, Attachment A, Table 14. JVC
notes that consumers are not experts in the Periodic
Table of Elements and likely would not even know
22
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
10193
asked consumers whether they knew
what 585 plat; 0 pgm meant and only
5.2% responded yes.32 Of that 5.2%,
however, only two consumers (less than
1% of the total consumers surveyed)
correctly described the marking. The
Maronick study also probed whether
consumers understood a platinum/base
metal alloy marking, ‘‘585 plat; 415 CO/
CU.’’ Only 7.5% stated they knew what
this marking meant, but only 6.9% of
those consumers actually understood
that the marking described the
proportion of platinum and other metals
in the jewelry product.33 Similarly, with
respect to gold markings, the Maronick
study reports that although 82.2% of
respondents indicated they knew what
14 karat gold meant, only 16% of those
respondents accurately indicated that it
meant 58-59% gold.34
In addition, the PGI product testing
shows that certain platinum/base metal
alloys are inferior to platinum/other
PGM alloys in terms of wear and
oxidation resistance, weight loss, and
ability to withstand a welding/soldering
procedure for sizing.35 The testing
further shows that the platinum/base
metal alloys in these tests may not be
hypoallergenic.36 It is not clear from the
testing PGI submitted that all platinum
jewelry products with less than 850 ppt
pure platinum alloyed with base metals
would yield the same test results. These
tests evaluated products with 58.559.2% pure platinum. The record does
not address whether products that
contain a higher percentage of platinum,
or the same percentage of platinum
alloyed with different base metals,
would produce different test results.
Based on their tests, JVC and PGI
assert that, to avoid deception,
marketers would need to disclose how
platinum/base metal alloy jewelry
products differ from traditional
platinum jewelry in durability, strength,
hypoallergenic properties, weight,
purity, scratch resistance, tarnishability,
and ability of jewelers to repair or resize
the product. PGI and JVC, however,
contend that appropriate and prominent
disclosures addressing such extensive
information are not feasible at the retail
level.37 Accordingly, JVC and PGI assert
that ‘‘Co’’ is the abbreviation for copper. JVC
comment at 7.
32 PGI comment, Attachment A, at 25.
33Id. at 26.
34Id. at 24.
35 PGI comment, Attachment C.
36 PGI comment, Attachment D.
37 PGI contends that the Hall & Partners study
supports this assertion. That study showed that
only 25-30% of those people surveyed responded
that sales people explained the differences between
the different metals (gold, white gold, and
platinum), and only 22-24% of consumers surveyed
E:\FR\FM\26FEP1.SGM
Continued
26FEP1
10194
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS
that given consumers’ perceptions of
platinum jewelry, consumer confusion
regarding jewelry markings, and their
testing data, the appropriate course to
avoid deception is to amend the Guides
to state that products that do not contain
at least 50% platinum and a
combination of at least 950 ppt pure
platinum and other PGM cannot be
marked or described ‘‘platinum.’’38
JVC and PGI further submit that state
laws in California, New York, New
Jersey, Illinois, and Wisconsin do not
permit platinum/base metal alloy
jewelry products to be marked or
described as ‘‘platinum.’’ These state
laws are based on historical Department
of Commerce Voluntary Product
Standards (‘‘VPS’’). JVC explains that
the five state statutes require products to
contain 950 ppt pure platinum (with
solder) or 985 ppt (without solder) to be
marked or marketed as ‘‘platinum’’
without qualification.39 These statutes
permit qualified platinum markings for
products with at least 500 ppt pure
platinum and 950 ppt total PGM.40
Finally, JVC and PGI state that the
International Standards Organization
(‘‘ISO’’) standard for platinum markings
also precludes marking or describing
products as platinum unless they
contain at least 850 ppt pure
platinum.41 JVC and PGI contend, that
because many countries have adopted
ISO standards, platinum/base metal
alloy jewelry generally could not be
marked as ‘‘platinum’’ if sold abroad.42
Karat Platinum disagrees with JVC’s
and PGI’s positions on virtually every
point. First, Karat Platinum states, that
if the Commission determines that
revising the Guides is appropriate, the
revised Guides should simply codify the
language in the February 2005 staff
opinion letter. Karat Platinum further
asserts that its platinum/base metal
believed that sales people helped them to
understand the differences. PGI comment,
Attachment B.
38 JVC comment at 4; PGI comment at 26.
39 PGI comment at 3, 9 & n.33; JVC comment at
2 & n.2. Both PGI and JVC cite Cal. Bus. & Prof.
Code §§ 22120-22132; Ill. Comp. Stat. §§ 395/0.01395/0.11 (Platinum Sales Act); N.J. Stat. § 51:6
(Platinum and Alloys); N.Y. Gen. Bus. §§ 230-238
(Platinum Stamping); Wis. Stat. § 134.33 (Platinum
Stamping).
40 The statutes require that marketers must
disclose the product composition indicating the
number in ppt of each metal to qualify the platinum
marking. See Cal. Bus. & Prof. Code §§ 22120-22132;
Ill. Comp. Stat. §§ 395/0.01-395/0.11 (Platinum
Sales Act); N.J. Stat. § 51:6 (Platinum and Alloys);
N.Y. Gen. Bus. §§ 230-238 (Platinum Stamping);
Wis. Stat. § 134.33 (Platinum Stamping).
41 JVC comment at 8 & n.4; PGI comment at 20
(both citing ISO 9202:1991(E), ‘‘Jewellery - Fineness
of precious metal alloys’’). PGI explained that the
ISO standard provides for three values in ppt for
platinum jewelry: 950, 900, and 850. Id.
42 JVC comment at 8; PGI comment at 20.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
alloy does share almost all of the same
qualities as traditional platinum
products.43 It submitted testing of its
alloy showing that it is superior to
traditional platinum products in terms
of strength, hardness, and casting
ability, and that its ability to resist
corrosion is equivalent to other
platinum products. The only attribute of
potential difference, according to Karat
Platinum’s study, is density—its
platinum/base metal alloy is less
dense.44 Karat Platinum’s test did not
evaluate whether its alloy is
hypoallergenic.
Karat Platinum further explains that,
consistent with the FTC staff’s advice, it
will disclose its product’s full
composition, which will give consumers
complete information about the content
of the product and promote it as a ‘‘new
product.’’45 Karat Platinum did not
submit any consumer survey evidence
evaluating how consumers interpret its
proposed marketing. It asserts, however,
that consumers will understand that its
product contains less platinum than
traditional platinum jewelry because the
description will put consumers on
notice about the amount of platinum in
the product and the ‘‘new’’
representations will alert consumers
that it is different.46 Karat Platinum
asserts that consumers do understand
karat markings. Karat Platinum argues
that consumers know that gold has
different levels of purity and is alloyed
with different metals, and will similarly
understand that platinum jewelry is not
pure and is alloyed with different
metals.47
Prohibiting marketers from using the
word ‘‘platinum’’ because a product
contains less than 85% platinum and no
other PGM will not benefit consumers,
according to Karat Platinum. This
prohibition, Karat Platinum contends,
will deprive consumers of truthful and
accurate information about the product
and the opportunity to own more
affordable, high quality platinum
jewelry.48
B. Analysis of the Comments
The record supports the following
conclusions: (1) a substantial number of
consumers believe products marked or
described as ‘‘platinum’’ are pure and
possess certain desirable qualities; (2) a
substantial number of consumers
generally would not expect platinum/
base metal alloy jewelry to be marked or
43Karat
Platinum comment at 2.
at 3 and Exhibit A.
45Id. at 4.
46Id. at 5.
47Id. at 6-7.
48Id. at 1.
44Id.
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
described ‘‘platinum’’; (3) many
consumers do not fully understand
numeric jewelry markings and chemical
symbols and may find them confusing;
(4) testing data in the record suggests
that some platinum/base metal alloys do
not possess all of the qualities of higher
purity platinum jewelry that consumers
expect; and (5) the consumer perception
and product testing data support
revising the Guides to address the
marketing of platinum/base metal
alloys, as explained below.
1. Consumer Perceptions Regarding the
Use of the Term ‘‘Platinum’’
The survey evidence PGI submitted,
particularly the Maronick study,
provides insight into consumer
perceptions regarding the use of the
term ‘‘platinum’’ to describe jewelry.
The Maronick study presents evidence
that many consumers understand that
products marked or described as
‘‘platinum’’ are pure or nearly pure and
that certain qualities or attributes
typically associated with platinum are
important to a substantial number of
consumers. These qualities or attributes
include the product’s weight, durability,
scratch and tarnish resistance, and
whether it is hypoallergenic and can be
resized.
2. Consumer Expectations Regarding
Products Described as ‘‘Platinum’’
The Maronick study further found
that a majority of consumers would not
expect platinum/base metal alloys
containing more than 40% base metal to
be called ‘‘platinum,’’ particularly if
they do not possess the qualities and
attributes present in higher purity
platinum or platinum/other PGM
products, such as those containing at
least 850 ppt pure platinum, or at least
500 ppt pure platinum and at least 950
ppt PGM. These findings indicate that
many consumers have high expectations
regarding products described as
platinum, and draw the conclusion that
such products possess certain qualities
or attributes that make them superior to
products consisting of other metals (e.g.,
superior strength, durability, and
resistance to scratching and tarnishing).
3. Consumer Understanding of Numeric
Jewelry Markings
The Maronick study also provides
evidence that many consumers do not
fully understand numeric jewelry
markings, particularly those using
chemical symbols, such as 585 Pt./415
Co.Cu. The Maronick study, however,
does not address what consumers take
away from these numeric and symbolic
markings for platinum jewelry products.
The study asked consumers: ‘‘Do you
E:\FR\FM\26FEP1.SGM
26FEP1
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS
know what ‘585plat, 415 CO/CU’
means?’’ If consumers said no, the study
did not ask follow up questions probing
their actual understanding.49 While
consumers clearly could not identify the
metals represented by the markings, it is
not clear whether they understood that
the product contained platinum and two
other metals or that it contained a lower
percentage of platinum than products
without the markings. In a potentially
analogous situation, the Maronick study
showed that, even though many
consumers cannot define the term ‘‘14
karat gold’’ accurately, the term does
convey important information.
Specifically, consumers understand that
‘‘14 karat’’ represents the amount of
gold in the product, and that 18 karat
gold jewelry contains more gold than 14
karat gold jewelry.50
While numerical and chemical
markings may provide some useful
information to consumers, the record
indicates that even using full names and
no chemical abbreviations to disclose
the composition of platinum/base metal
alloys may be inadequate. Specifically,
the Maronick study shows that many
consumers expect products described as
platinum to have certain qualities and
attributes, even if they consist in part of
non-platinum group metals. Disclosure
using full chemical names, therefore,
might not provide adequate notice that
the product may differ from products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM,
with respect to one or more qualities or
attributes important to consumers.
4. Testing Data of Platinum/Base Metal
Alloys
It is, therefore, important to determine
whether platinum/base metal alloys
have the same properties as products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM. The
record provides a useful, albeit
inconclusive, answer. Specifically, the
record suggests that at least some
platinum/base metal alloys do not
possess all of the qualities of products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM. On
one hand, PGI’s testing indicates that
certain platinum/base metal alloys are
inferior to higher purity platinum
jewelry in terms of wear and oxidation
resistance, as well as weight loss, and
that they cannot be resized using certain
procedures.51 On the other hand, Karat
PGI Comment, Attachment A, at 42.
at 24.
51 PGI did not test Karat Platinum’s alloy.
49
50Id.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
Platinum’s testing suggests that its alloy
is superior or equivalent to higher
purity platinum jewelry in several
respects. Karat Platinum’s testing,
however, showed that its alloy is less
dense than higher purity platinum
jewelry, and it did not test whether the
alloy is hypoallergenic.
Accordingly, the record is incomplete
regarding the extent to which platinum/
base metal alloys differ from higher
purity platinum or platinum/other PGM
jewelry with respect to those qualities
material to consumers’ purchasing
decisions. The record is also incomplete
regarding the extent to which the
qualities and attributes of jewelry differ
depending on the percentage of
platinum and the type and percentage of
base metal in the jewelry. The record
does indicate, however, that at least
some platinum/base metal alloys likely
do not have all, or substantially all, of
the qualities or attributes that
consumers view as important in purer
platinum products, such as those
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM.
5. The Record Supports Amending the
Platinum Section of the Guides
The record on consumer perception
and the product testing described above
supports amending the Guides to
address the marketing of platinum/base
metal alloys. In particular, the record
supports revising the Guides to state
that marketers may describe platinum/
base metal alloys as platinum, provided
they adequately qualify the claim.
The platinum section of the FTC’s
Jewelry Guides currently provides that
the unqualified use of the word
‘‘platinum’’ is deceptive for products
that do not contain 950 ppt or more
pure platinum. It also provides guidance
on how marketers may qualify the word
to describe certain products containing
less than 950 ppt pure platinum. The
Guides, however, do not address claims
for products containing at least 500 ppt
pure platinum alloyed with base metals.
The JVC, PGI, and numerous retailers
recommend that the FTC amend the
platinum section of the Guides to state
that even the qualified use of the word
‘‘platinum’’ to describe these products
would deceive consumers.52 Based on
the current record, however, the
Commission cannot conclude that the
52 JVC and PGI acknowledge that a qualified use
of the word ‘‘platinum’’ could, in theory, address
consumer confusion or deception stemming from
the use of the term ‘‘platinum’’ to describe
platinum/base metal alloys. Yet, JVC and PGI assert
that it would be impracticable and likely ineffective
to make the lengthy, detailed disclosures that they
believe would be needed to prevent deception.
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
10195
properly qualified use of the word
platinum to describe every platinum/
base metal alloy would materially
mislead consumers. Accordingly, we do
not propose to amend the Guides in this
manner.
The weight of the evidence leads us
to conclude that there is a high
probability of consumer deception if
marketers describe platinum/base metal
alloys as ‘‘platinum’’ qualified only with
a disclosure of the product’s metal
content using numbers and chemical
abbreviations.53 As discussed above, the
record indicates that many consumers
have pre-existing beliefs about the
qualities of products marked or
described as ‘‘platinum,’’ and at least
some platinum/base metal alloys may
not meet their expectations. The record
also provides evidence that numeric
markings and chemical abbreviations
confuse many consumers. Thus,
describing a platinum/base metal alloy
as platinum and disclosing its metal
content using numbers and chemical
abbreviations would most likely fail to
inform many consumers that the
product differs from traditional
platinum products with respect to the
product’s purity as well as the qualities
and attributes important to consumers.
The record, therefore, demonstrates that
marketers selling platinum/base metal
alloys should disclose more detailed
information to prevent deception.
To address potential consumer
confusion regarding numbers and
chemical abbreviations, the Commission
proposes amending the Guides to state
that marketers of platinum/base metal
alloys described as platinum should
expressly disclose that the product
contains platinum and other nonplatinum group metals and also
separately disclose the product’s full
composition, by name and not
abbreviation, and the percentage of each
other metal in the product.54 By
53 Karat Platinum’s suggestion that it will also
market the product as ‘‘new,’’ which, it contends,
conveys that the product differs from traditional
platinum products and should prompt consumers
to seek information about the product, is, at best,
a temporary solution. Karat Platinum presumably
will not market this product as ‘‘new’’ forever. In
any event, a mere representation that a product is
new would not disclose how it differs from
products containing a higher percentage of
platinum.
54 This disclosure provides for the use of
percentages rather than ppt because the survey
evidence revealed that ppt markings, like numbers
and chemical abbreviations, confuse consumers.
The other provisions of the platinum section of the
Guides provide for compositional disclosures using
ppt. As discussed below, the proposed amendment
would allow for the physical stamping of platinum/
base metal alloy jewelry using ppt and chemical
abbreviations. It is only the full composition
E:\FR\FM\26FEP1.SGM
Continued
26FEP1
jlentini on PROD1PC65 with PROPOSALS
10196
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
disclosing the composition of the
jewelry in this manner, marketers would
alert consumers to the presence of
particular metals and help prevent
deception regarding the purity of
products described as platinum.
For the reasons noted above, a full
name composition disclosure should
alleviate the confusion regarding a
platinum/base metal alloy product’s
purity but would not necessarily
alleviate all confusion regarding the
product’s other properties. The record
demonstrates that use of the word
‘‘platinum,’’ even in conjunction with a
compositional disclosure, conveys
important quality information to
consumers (i.e., that the product
possesses qualities typically associated
with platinum). As such, the record
indicates a need for additional
disclosure to prevent deception.
Therefore, the proposed Guides state
that marketers should expressly disclose
that a platinum/base metal alloy
product may not have all the properties
that consumers associate with higher
purity platinum/other PGM products.
The record does not address whether
the term Karat Platinum or other
qualifying moniker, either in
conjunction with a compositional
disclosure or without one, might imply
that the product either differs in some
respects from other products containing
platinum or is comparable to other such
products in material respects. Thus, we
do not have a basis to conclude that use
of the term Karat Platinum or other
qualifying moniker will sufficiently
alert consumers to the potential
differences between platinum/base
metal alloy jewelry products and higher
purity platinum/other PGM products
with respect to the properties material
to consumers.
As noted earlier, the record does not
include sufficient evidence for the
Commission to identify which
platinum/base metal alloys differ from
products containing at least 850 ppt
pure platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM, and
with respect to which attributes. Some
platinum/base metal alloys, however,
may be equivalent to products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM,
with respect to some, or all, of the
attributes important to consumers
depending upon the percentage of
platinum and both the percentages and
types of base metals. For this reason, the
proposed amendment provides that a
marketer need not disclose that its
disclosure that will differ in that it provides for the
use of percentages.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
product may not have the same
attributes or properties as products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM, if
the marketer has competent and reliable
scientific evidence that, with respect to
all attributes or properties material to
consumers (e.g., the product’s
durability, hypoallergenicity, resistance
to tarnishing and scratching, and the
ability to resize or repair the product),
such product is equivalent to products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM.
C. Harmonization with State Law and
International Standards
The record includes evidence that
laws in at least five states and an ISO
standard that some countries have
adopted do not permit platinum/base
metal alloy products to be marked or
described as ‘‘platinum.’’ Thus, JVC and
PGI contend that, if the FTC issues
guidance allowing such products to be
marked as ‘‘platinum,’’ our Guides will
conflict with state law and international
standards. Although the Commission
generally prefers to harmonize its
guidance with state and international
laws and standards, Commission Guides
must be based upon the Section 5
deception or unfairness standard.55
The state laws and the ISO standard
discussed above are not based upon a
deception or unfairness standard. As
explained above, the state laws that JVC
and PGI cite are based upon VPS that
the Department of Commerce
promulgated 75 years ago.56 VPS are
developed through general consensus
among affected parties.57 Similarly, ISO
55 The Trade Agreements Act of 1979 states that
no federal agency ‘‘may engage in standards-related
activity that creates unnecessary obstacles to the
foreign commerce of the United States and that
federal agencies must, in developing standards take
into consideration international standards and
shall, if appropriate, base the standards on
international standards.’’ 19 U.S.C. § 2532(2)(A).
The term ‘‘standard’’ in the Act includes guidelines
that are not mandatory, such as the Jewelry Guides.
The Act provides, however, that ‘‘the prevention of
deceptive practices’’ is an area where basing a
standard on an international standard ‘‘may not be
appropriate.’’ Id. at § 2532(2)(B)(i)(II).
56 61 FR 27185 n.99 (May 30, 1996) (explaining
that the Commerce standards were promulgated in
1933).
57See 15 C.F.R. Part 10.3 (setting forth the
procedures for the development of VPS). The
states’statutes adopted the VPS verbatim many
years ago (e.g., California in 1941; New York in
1965; Wisconsin in 1979). Even if the states
conducted an independent deception analysis when
they adopted these standards, it is likely that
consumer perception regarding platinum
representations and the marketplace has changed
over time. Indeed, it does not appear that any
platinum/base metal alloy jewelry products
marketed as platinum existed when the states
PO 00000
Frm 00012
Fmt 4702
Sfmt 4702
standards are technical industry
standards developed through a
consensus-building process.58
Accordingly, although harmonization
with state laws and international
standards is typically favored, where, as
here, our analysis of consumer
perception data reveals that there is
insufficient evidence that a particular
claim (i.e., a qualified platinum
representation) is deceptive, the
Commission cannot promulgate a guide
stating that marketers should not make
the representation solely to achieve
harmony.
IV. Proposed Amendment to Platinum
Section of the Jewelry Guides
A. Proposed Amendment
Based on the analysis above, the
Commission seeks comment on a
proposed amendment to Section 23.7(b)
of the Jewelry Guides. The proposed
amendment would allow marketers to
physically mark or stamp platinum/base
metal alloy jewelry with a standard
platinum jewelry marking that lists the
product’s chemical composition (e.g.,
585 Pt./415 Co.Cu.), but also states that
when making any other representation
that the product contains platinum they
should disclose additional information.
This proposed amendment states that, to
avoid misleading consumers, marketers
should clearly and conspicuously
disclose, immediately following the
name or description of the product: (i)
that the product contains platinum and
adopted these standards. In addition, these state
statutes already conflict with the current platinum
Guides. The Commission revised the Guides in
1997 to harmonize the treatment of platinum
products containing 850, 900, or 950 ppt pure
platinum with the ISO standard and to simplify the
Commission’s guidance for products containing less
than 850 ppt, but more than 500 ppt, pure platinum
and 950 ppt PGM. The state statutes mirror the
FTC’s pre-1997 Guides for these categories of
platinum products. For example, the state statutes
provide that products containing at least 750 ppt,
but less than 950 ppt pure platinum (with solder;
985 ppt without solder) and 950 ppt PGM, may be
marked platinum provided the name or
abbreviation of the other PGM that predominates
precedes the word platinum (e.g., Irid-Plat.). See,
e.g., N.Y. Gen. Bus. Law § 234(b). Consistent with
the ISO standard, the current Guides provide that
products containing 850 ppt or more pure platinum
may be ‘‘platinum’’ provided the name or
abbreviation is preceded with the amount in ppt of
the platinum in the product. For products
containing at least 750 ppt, but less than 850 ppt,
pure platinum and 950 ppt other PGM, the Guides
provide that marketers should disclose both the
amount in ppt of pure platinum in the product and
other PGM. 16 C.F.R. §§ 23.7(c)(3-4).
58See www.iso.org/iso/standards_development/
process_and_procedures/ how_are_standards_
developed.htm (explaining that ISO standards are
developed through a consensus-building phase that
takes into account the views of manufacturers,
vendors and users, consumer groups, testing
laboratories, engineering professionals, and
research organizations).
E:\FR\FM\26FEP1.SGM
26FEP1
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS
other non-platinum group metals;59 (ii)
the product’s full composition, by name
and not abbreviation, and the
percentage of each metal;60 and (iii) that
the product may not have the same
attributes or properties as products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM.61
As noted above, the record indicates
that a substantial percentage of
consumers believe products described
as ‘‘platinum’’ are pure. The first
proposed disclosure will inform
consumers directly that the product is
not pure. In addition, by stating that
marketers should include the full name,
not the abbreviation, of each metal, the
second disclosure will alleviate
consumer confusion regarding
numerical, abbreviated descriptions of
jewelry content. The third proposed
disclosure is designed to avert
deception regarding quality information
conveyed by the term platinum that the
record demonstrates likely will not be
addressed by a content disclosure alone.
However, because some platinum/
base alloy products may possess all the
attributes or qualities of platinum
jewelry that are important to consumers,
the proposed amendment contains an
additional provision. That provision
provides that a marketer does not need
to make this third disclosure if the
marketer has competent and reliable
scientific evidence that, with respect to
all attributes or properties material to
consumers (e.g., the product’s
59 The proposed Guide provides for this
disclosure for products that contain at least 500
parts per thousand, but less than 850 parts per
thousand, pure Platinum, and do not contain at
least 950 parts per thousand PGM. As such the
provision applies to platinum/base metal alloys but
would also apply to a product that contains
platinum, base metals, and other platinum group
metals—e.g., 58.5% Platinum, 35% Copper/Cobalt,
10% Iridium. The second disclosure, providing for
a full name compositional disclosure, would inform
consumers of the presence of the other platinum
group metals in the product. Nothing in the Guide,
however, would prohibit marketers from also
truthfully disclosing in this first disclosure that the
product contains other platinum group metals (e.g.,
this product contains platinum, other platinum
group metals and other non-platinum group
metals).
60 The proposed Guide provides that when using
percentages to qualify platinum representations,
marketers should convert the amount in parts per
thousand to a percentage that is accurate to the first
decimal place (e.g., 58.5% Platinum, 41.5%
Copper/Cobalt).
61 By making the second of these disclosures, a
marketer would not satisfy the requirements of the
first disclosure. Specifically, a consumer who
received the composition disclosure would only
understand that the alloy contained non-platinum
group metals if he or she knew which metals
comprised that group. The record, however, while
not specifically addressing this issue, tends to
demonstrate that many consumers do not have a
clear understanding of metal alloys. Therefore, the
first and second disclosures are necessary.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
10197
durability, hypoallergenicity, resistance
to tarnishing and scratching, and the
ability to resize or repair the product),
such product is equivalent to products
containing at least 850 ppt pure
platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM.
The proposed amendment does not
contain a definitive listing of the
attributes or properties material to
consumers, nor does it specify the type
of scientific substantiation necessary to
avoid making the disclosure. Because
the attributes or properties material to
consumers and the nature of the
substantiation may change over time,
the Commission believes that flexible
guidance is appropriate and that
members of the jewelry industry are
well-positioned to comply with such
guidance. The Commission seeks
comment on whether such guidance is
sufficiently precise for marketers to
avoid deceiving consumers regarding
platinum/base metal alloys.
tarnishing and scratching, and the
ability to resize or repair the product),
such product is equivalent to products
containing at least 850 parts per
thousand pure Platinum, or at least 500
parts per thousand pure Platinum and at
least 950 parts per thousand PGM.
Provided, further, a product that
contains at least 500 parts per thousand,
but less than 850 parts per thousand,
pure Platinum, and does not contain at
least 950 parts per thousand PGM, may
be marked or stamped accurately, with
a quality marking on the article, using
parts per thousand and standard
chemical abbreviations (e.g., 585 Pt.,
415 Co.Cu.).
Note to § 23.7(b)(4): When using
percentages to qualify platinum
representations, marketers should
convert the amount in parts per
thousand to a percentage that is accurate
to the first decimal place (e.g., 58.5%
Platinum, 41.5% Copper/Cobalt).
B. Text of the Proposed Amendment
The Commission proposes adding
Section 23.7(b)(4) to the Jewelry Guides
as an additional example of markings or
descriptions of platinum that may be
misleading.
The text of the proposed amendment
of Section 23.7(b)(4) is as follows:
(4) Use of the word ‘‘Platinum,’’ or
any abbreviation accompanied by a
number or percentage indicating the
parts per thousand of pure Platinum
contained in the product, to describe all
or part of an industry product that
contains at least 500 parts per thousand,
but less than 850 parts per thousand,
pure Platinum, and does not contain at
least 950 parts per thousand PGM (for
example, ‘‘585 Plat.’’) without a clear
and conspicuous disclosure,
immediately following the name or
description of such product:
(i) that the product contains Platinum
and other non-platinum group metals;
(ii) the full composition of the
product (by name and not
abbreviation) and percentage of each
metal; and
(iii) that the product may not have the
same attributes or properties as
products containing at least 850 parts
per thousand pure Platinum, or at
least 500 parts per thousand pure
Platinum and at least 950 parts per
thousand PGM.
Provided, however, that the marketer
need not make disclosure 23.7(b)(4)(iii),
above, if the marketer has competent
and reliable scientific evidence that,
with respect to all attributes or
properties material to consumers (e.g.,
the product’s durability,
hypoallergenicity, resistance to
The Commission seeks public
comment on a proposed amendment to
the platinum section of the Jewelry
Guides that provides guidance on how
to mark or describe non-deceptively
products that contain at least 500 ppt,
but less than 850 ppt, pure platinum,
and that do not contain at least 950
parts per thousand PGM. In addition,
the Commission seeks public comment
on whether it should revise the Guides
to provide guidance on how to mark or
describe platinum-clad, filled, plated, or
overlay products.62
The Commission requests written
responses to any or all of the following
questions. The Commission requests
that responses be as specific as possible,
including a reference to the question
being answered, and a reference to
empirical data or other evidence
wherever available and appropriate.
1. Should the Commission amend the
platinum section of the Jewelry Guides
by adopting the proposed amendment?
a. If so, why? Please provide any
evidence that supports your answer.
b. If not, why not? Please provide any
evidence that supports your answer.
2. Should the Commission revise the
language in the proposed amendment to
provide for additional disclosures to
ensure that consumers are not misled,
for example, by including additional,
more detailed disclosures regarding how
products that contain at least 500 ppt,
but less than 850 ppt, pure platinum,
and that do not contain at least 950
parts per thousand PGM, differ from
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
V. Request for Public Comment
62See 16 CFR 23.4 and 23.6 (addressing goldplated, gold-filled, gold-overlay, gold-electroplated,
and silver-plated jewelry products).
E:\FR\FM\26FEP1.SGM
26FEP1
jlentini on PROD1PC65 with PROPOSALS
10198
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
traditional platinum products63 in terms
of purity and rarity?
a. If so, how and why?
b. What evidence supports making
your proposed revision(s)? Please
provide this evidence and explain why
any such revision is necessary to ensure
that consumers are not misled.
c. If not, why not? Please provide any
evidence that supports your answer.
3. Should the Commission revise the
language in the proposed amendment to
state that the disclosures should be
physically attached to the jewelry
product?
a. If so, how and why?
b. What evidence supports making
your proposed revision(s)? Please
provide this evidence and explain why
any such revision is necessary to ensure
that consumers are not misled.
c. If not, why not? Please provide any
evidence that supports your answer.
4. Should the Commission revise the
language in the proposed amendment to
provide that marketers need only make
the third disclosure that the platinum/
base metal alloy may not have the same
attributes or properties as traditional
platinum products, if they represent
expressly or by implication that such
product has one or more of the same
attributes or properties as traditional
platinum products (i.e., a triggered
disclosure)?
a. If so, how and why?
b. What evidence supports making
your proposed revision(s)? Please
provide this evidence and explain why
any such revision is necessary to ensure
that consumers are not misled.
c. Is there any evidence indicating
that the disclosure of the product’s full
composition will sufficiently alert
consumers to the differences between
platinum/base metal alloys and
traditional platinum products
containing a higher percentage of
platinum or other PGM? If so, please
provide this evidence.
d. If not, why not? Please provide any
evidence that supports your answer.
5. Is there a specific word or phrase that
could be used to describe products that
contain at least 500 ppt, but less than
850 ppt, pure platinum, and that do not
contain at least 950 parts per thousand
PGM, that would adequately convey
that such products differ from
traditional platinum products?
a. If so, please identify such word or
phrase and provide evidence
demonstrating that it adequately
conveys the differences between the
products.
63 ‘‘Traditional Platinum Products’’ referred to in
these questions means products containing at least
850 ppt pure platinum, or at least 500 ppt pure
platinum and at least 950 ppt total PGM.
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
b. Would the term ‘‘platinum alloy,’’
if used to describe products that contain
at least 500 ppt, but less than 850 ppt,
pure platinum, and that do not contain
at least 950 parts per thousand PGM,
adequately convey that such products
differ from traditional platinum
products? Please provide any evidence
that supports your answer.
c. Should the Commission revise the
language in the proposed amendment to
address the use of such a specific word
or phrase to describe products that
contain at least 500 ppt, but less than
850 ppt, pure platinum, and that do not
contain at least 950 parts per thousand
PGM?
(1) If so, how and why?
(2) What evidence supports making
your proposed revision(s)? Please
provide this evidence and explain why
such language adequately conveys the
differences between the products.
(3) If not, why not? Please provide any
evidence that supports your answer.
6. What, if any, additional disclosures
are necessary to explain that a product
that contains at least 500 ppt, but less
than 850 ppt, pure platinum, and that
does not contain at least 950 parts per
thousand PGM, may not have the same
attributes as traditional platinum
products?
a. Should the Commission revise the
language in the proposed amendment to
require any such additional disclosures?
How and why?
b. What evidence supports making
your proposed revision(s)? Please
provide this evidence.
c. If such disclosures are necessary,
please explain the manner and form in
which marketers should make them to
ensure that they are clear and
conspicuous to consumers.
7. The proposed amendment provides
that marketers disclose the full
composition of the platinum/base metal
alloy using full, unabbreviated names
and the percentage of each metal. Other
provisions in the platinum sections of
the Jewelry Guides provide for
compositional disclosures using parts
per thousand. Will the use of
percentages for this disclosure confuse
consumers?
a. If so, please provide any evidence
that supports your answer.
b. If evidence does indicate that
percentage disclosures will confuse
consumers because the other platinum
sections use parts per thousand, is there
other evidence that indicates that the
benefits of a percentage disclosure will
outweigh the confusion?
c. If not, why not? Please provide any
evidence that supports your answer.
8. What evidence, not submitted in
response to the Commission’s earlier
PO 00000
Frm 00014
Fmt 4702
Sfmt 4702
request for comment, indicates what
specific properties are important to
consumers when purchasing a product
marked or described as ‘‘platinum’’? If
there is such evidence, please provide
this evidence.
9. Is there evidence indicating the
meaning consumers take from qualified
platinum markings using abbreviations
and chemical symbols (e.g., 585 Pt., 415
Co.Cu.)? If so, please provide this
evidence.
10. Is there evidence indicating the
meaning consumers take from qualified
platinum markings using full-name
compositional disclosures (e.g., 58.5%
Platinum, 41.5% Copper/Cobalt)? If so,
please provide this evidence.
11. Is there evidence indicating whether
consumers think that products that
contain at least 500 ppt, but less than
850 ppt, pure platinum, and that do not
contain at least 950 parts per thousand
PGM, share the qualities, such as
durability, luster, density, scratch and
tarnish resistance, ability to resize or
repair, and hypoallergenicity, that are
associated with traditional platinum
products? If so, please provide this
evidence.
12. Is there evidence indicating what
qualities consumers associate with nonplatinum PGM products (products made
with platinum group metals other than
platinum, e.g., palladium, iridium),
such as durability, luster, density,
scratch and tarnish resistance, ability to
resize and repair, and hypoallergenicity,
that are associated with traditional
platinum products? If so, please provide
this evidence.
13. What constitutes ‘‘competent and
reliable scientific evidence’’ to
substantiate representations regarding
the qualities material to consumers,
such as the durability, luster, density,
scratch and tarnish resistance, ability to
resize and repair, and hypoallergenicity
of traditional platinum products and
products that contain at least 500 ppt,
but less than 850 ppt, pure platinum,
and that do not contain at least 950
parts per thousand PGM? Please provide
any evidence that supports your answer.
14. Describe in detail the scientific tests
used to determine or substantiate
representations regarding the qualities
material to consumers, such as the
durability, luster, density, scratch and
tarnish resistance, ability to resize and
repair, and hypoallergenicity, of
traditional platinum products and
products that contain at least 500 ppt,
but less than 850 ppt, pure platinum,
and that do not contain at least 950
parts per thousand PGM. Please provide
any evidence that supports your answer.
15. Describe in detail any differences
between alloys that contain at least 500
E:\FR\FM\26FEP1.SGM
26FEP1
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS
ppt, but less than 850 ppt, pure
platinum, and that do not contain at
least 950 parts per thousand PGM, and
traditional platinum products in terms
of the qualities material to consumers,
such as durability, luster, density,
scratch and tarnish resistance, ability to
resize and repair, and hypoallergenicity.
Please explain the basis for your answer
and provide evidence that supports your
answer.
16. Is there evidence indicating what the
terms ‘‘Karat Platinum,’’ ‘‘Platifina,’’
‘‘Platinum V,’’ and ‘‘Platinum 5’’ mean
to consumers? If so, please provide this
evidence.
17. Do consumers associate the terms
‘‘Karat Platinum,’’ ‘‘Platifina,’’
‘‘Platinum V,’’ and ‘‘Platinum 5’’ with
the qualities, such as durability, luster,
density, scratch and tarnish resistance,
ability to resize and repair, and
hypoallergenicity, that are associated
with traditional platinum products? If
so, please provide any evidence that
supports your answer.
18. Is there evidence indicating what the
phrase ‘‘other non-platinum group
metals’’ means to consumers? If so,
please provide this evidence.
19. Should the Commission amend the
platinum section of the Jewelry Guides
to address other products that contain
platinum, such as platinum-clad, filled,
plated, coated, or overlay products, that
are not currently addressed in the
section?
a. If so, how and why?
b. What evidence supports making
your proposed revision(s)? Please
provide this evidence and explain why
any such revision is necessary to ensure
that consumers are not misled including
specific guidance as to the
recommended thickness of the filling,
plating, or overlay of such platinum
products.
c. If not, why not?
VI. Communications by Outside Parties
to Commissioners or Their Advisors
Written communications and
summaries or transcripts of oral
communications respecting the merits
of this proceeding from any outside
party to any Commissioner or
Commissioner’s advisor will be placed
on the public record. See 16 CFR
1.26(b)(4).
All comments should be filed as
prescribed in the ADDRESSES section
above, and must be received on or
before May 27, 2008.
By direction of the Commission.
Donald S. Clark
Secretary
[FR Doc. E8–3594 Filed 2–25–08: 8:45 am]
BILLING CODE 6750–01–S
VerDate Aug<31>2005
17:16 Feb 25, 2008
Jkt 214001
NATIONAL LABOR RELATIONS
BOARD
29 CFR Parts 101 and 102
Joint Petitions for Certification
Consenting to an Election
National Labor Relations Board
(NLRB)
ACTION: Notice of Proposed Rulemaking.
AGENCY:
SUMMARY: As part of its ongoing efforts
to address the needs of employers,
individuals, and labor organizations and
to further the fundamental purposes of
the National Labor Relations Act, the
National Labor Relations Board (NLRB)
is proposing to adopt a rule that would
authorize a petition for a prompt NLRB
election to be jointly filed by a labor
organization and an employer. The
following proposal is offered to provide
initial focus for public comment. The
public is nevertheless encouraged to
suggest alternatives.
DATES: All written comments must be
received on or before March 27, 2008.
ADDRESSES: All written comments
should be sent to the Office of the
Executive Secretary, National Labor
Relations Board, 1099 14th Street, NW.,
Room 11600, Washington, DC 20570–
0001. The comments should be filed in
eight copies, double spaced on 81⁄2-by11 inch paper and shall be printed or
otherwise legibly duplicated.
FOR FURTHER INFORMATION CONTACT:
Lester A. Heltzer, Executive Secretary,
Telephone (202) 273–1067, e-mail
address Lester.Heltzer@nlrb.gov.
SUPPLEMENTARY INFORMATION: Section
102.62 of the Board’s Rules and
Regulations currently provides three
kinds of ‘‘consent’’ election procedures.
Under § 102.62(a) and (b), the parties
must stipulate with respect to
jurisdictional facts, labor organization
status, appropriate unit description, and
classifications of employees included
and excluded. The parties must also
agree to the time, place, and other
election details. Under § 102.62(a), the
parties agree that post-election disputes
will be resolved with finality by the
Regional Director. Under § 102.62(b),
post-election disputes are resolved
pursuant to § 102.69 of the Board’s
Rules and Regulations, with the parties
retaining the right to file exceptions or
requests for review with the Board.
Under § 102.62(c), the parties can agree
to the conduct of an election with
disputed pre-election and post-election
matters to be resolved with finality by
the Regional Director.
The current proposal for revision of
the Board’s Rules and Regulations
would create a new, voluntary
PO 00000
Frm 00015
Fmt 4702
Sfmt 4702
10199
procedure whereby a labor organization
and an employer could file jointly a
petition for certification consenting to
an election. The petition will provide
the date on which the parties have
agreed for an election, not to exceed 28
days from the date of the filing of the
petition, and the place and hours on
which the parties have agreed for an
election. In addition, the petition will
provide a description of the bargaining
unit that the parties claim to be
appropriate, the payroll period for
eligibility to vote in the election, and
the full names and addresses of
employees eligible to vote in the
election. If the petition lacks any
necessary information, the Regional
Director will so advise the parties and
request that the petition be corrected.
No showing of interest is required to
be filed with the petition. If it appears
to the Regional Director that the
information provided on the petition is
accurate and sufficient and that the
bargaining unit description is
appropriate on its face and not contrary
to any statutory provision, the petition
will be docketed. Within 3 days of the
docketing of the petition, the Regional
Director will advise the parties of his/
her approval of their request for an
election. The parties’ agreement as to
the date, place, and hours of the election
will be approved by the Regional
Director, absent extraordinary
circumstances.
Also within 3 days of the docketing of
the petition, the Regional Director will
send to the employer official NLRB
notices, informing employees that the
joint petition for certification has been
filed and specifying the date, place, and
hours of the election. These notices
must be posted by the employer in
conspicuous places where notices to
employees are customarily posted and
must remain posted through the
election. Failure to post these notices as
required shall be grounds for setting
aside the election whenever proper and
timely objections are filed under the
provisions of § 102.69(a). In addition to
these notices, the employer must also
post copies of the Board’s official Notice
of Election in conspicuous places at
least 3 full working days prior to 12:01
a.m. of the day of the election, as
required under § 103.20 of the Board’s
Rules and Regulations.
Any motions to intervene may be filed
with the Regional Director in
accordance with § 102.65 of the Board’s
Rules and Regulations, except that any
such motion must be filed within 14
days from the docketing of the petition.
The Board’s traditional intervention
policies regarding levels of intervention
and the intervenor’s corresponding
E:\FR\FM\26FEP1.SGM
26FEP1
]]>Agencies
[Federal Register Volume 73, Number 38 (Tuesday, February 26, 2008)]
[Proposed Rules]
[Pages 10190-10199]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3594]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 23
Guides for the Jewelry, Precious Metals, and Pewter Industries
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Request for public comment on a proposed amendment to the
platinum section of the Guides for the Jewelry, Precious Metals, and
Pewter Industries.
-----------------------------------------------------------------------
SUMMARY: The Commission is seeking comments on a proposed amendment to
the platinum section of the FTC's Guides for the Jewelry, Precious
Metals, and Pewter Industries, 16 CFR part 23. The amendment provides
guidance on how to mark or describe non-deceptively products containing
at least 500 parts per thousand, but less than 850 parts per thousand,
pure platinum and no other platinum group metals. The Commission is
also seeking comment on whether the Guides for the Jewelry, Precious
Metals, and Pewter Industries should be revised to provide guidance on
how to mark or describe platinum-clad, filled, plated, or overlay
products.
DATES: Written comments must be received on or before May 27, 2008.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``Jewelry Guides, Matter No. G711001'' to
facilitate the organization of comments. A comment filed in paper form
should include this reference both in the text and on the envelope, and
should be mailed or delivered, with two copies, to the following
address: Federal Trade Commission/Office of the Secretary, Room 135-H
(Annex E), 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. If
the comment contains any material for which confidential treatment is
requested, it must be filed in paper (rather than electronic) form, and
the first page of the document must be clearly labeled
``Confidential.''\1\ The FTC is requesting that any comment filed in
paper form be sent by courier or overnight service, if possible,
because U.S. postal mail in the Washington area, and at the Commission,
is subject to delay due to heightened security precautions.
---------------------------------------------------------------------------
\1\ Commission Rule 4.2(d), 16 CFR 4.2 (d). The comment must be
accompanied by an explicit request for confidential treatment,
including the factual and legal basis for the request, and must
identify the specific portions of the comment to be withheld from
the public record. The request will be granted or denied by the
Commission's General Counsel, consistent with applicable law and the
public interest. See Commission Rule 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------
Because U.S. postal mail is subject to delay due to heightened
security measures, please consider submitting your comments in
electronic form. Comments filed in electronic form (except comments
containing any confidential material) should be submitted by clicking
on the following: https://secure.commentworks.com/ftc-jewelry and
following the instructions on the web-based form. To ensure that the
Commission considers an electronic comment, you must file it on the
web-based form at https://secure.commentworks.com/ftc-jewelry. If this
[[Page 10191]]
Notice appears at https://www.regulations.gov, you may also file an
electronic comment through that website. The Commission will consider
all comments that regulations.gov forwards to it.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. The Commission will consider all timely and responsive
public comments that it receives, whether filed in paper or electronic
form. Comments will be available to the public on the FTC website, to
the extent practicable, at https://www.ftc.gov. As a matter of
discretion, the FTC makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC website. More information, including
routine uses permitted by the Privacy Act, may be found in the FTC's
privacy policy at https://www.ftc.gov/ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT: Robin Rosen Spector, Attorney, (202)
326-3740, or Janice Podoll Frankle, Attorney, (202) 326-3022, Division
of Enforcement, Bureau of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.
SUPPLEMENTARY INFORMATION:
I. Introduction
The Guides for the Jewelry, Precious Metals, and Pewter Industries
(``Jewelry Guides'' or ``Guides'') address claims made about precious
metals, diamonds, gemstones, and pearl products. 16 CFR part 23. The
Jewelry Guides provide guidance on how to avoid making deceptive claims
and, for certain products, discuss when disclosures should be made to
avoid unfair or deceptive trade practices. The Commission is seeking
public comment on Section 23.7 of the Jewelry Guides, which addresses
claims for platinum products.
Industry guides are administrative interpretations of the
application of Section 5 of the FTC Act, 15 U.S.C. 45(a). The
Commission issues industry guides to provide guidance for the public to
conform with legal requirements. 16 CFR part 17. Failure to follow
industry guides may result in corrective action under Section 5 of the
FTC Act. In any such enforcement action, the Commission must prove that
the act or practice at issue is unfair or deceptive.
Platinum products marketed as ``platinum'' typically contain at
least 85% pure platinum or contain at least 50% pure platinum in
combination with other platinum group metals (``PGM'') that total 95%
PGM.\2\ During the last few years, some manufacturers have marketed
products as ``platinum'' that contain more than 50%, but less than 85%,
pure platinum, and no other PGM.\3\ In a Federal Register notice
published July 6, 2005 (``2005 FRN''),\4\ the Commission sought comment
on whether it should revise the platinum section of the Jewelry Guides
to address such products. The comment period closed October 12, 2005.
---------------------------------------------------------------------------
\2\ The Platinum Group Metals include platinum, iridium,
palladium, ruthenium, rhodium, and osmium.
\3\ We are aware that some companies are selling similar
products but marketing them under names other than ``platinum.''
\4\ 70 FR 38834 (July 6, 2005).
---------------------------------------------------------------------------
II. Background
The platinum section of the Jewelry Guides contains a general
statement regarding the deceptive use of the term ``platinum'' (and
other PGM) and provides specific examples of misleading and non-
violative uses of the term ``platinum.''\5\ Specifically, Section 7(a)
of the Jewelry Guides states that it is ``unfair or deceptive to use
the words `platinum,' `iridium,' `palladium,' `ruthenium,' `rhodium,'
and `osmium,' or any abbreviation to mark or describe all or part of an
industry product if such marking or description misrepresents the
product's true composition.'' 16 CFR 23.7(a).
---------------------------------------------------------------------------
\5\ On April 8, 1997 (62 FR 16669), the Commission published the
current platinum section of the Jewelry Guides. The Commission
revised this section as part of a comprehensive review of all of the
provisions of the Guides.
---------------------------------------------------------------------------
Section 7(b) provides examples of markings or descriptions for
products containing platinum that may be misleading:
(1) Use of the word ``Platinum'' or any abbreviation, without
qualification, to describe all or part of any industry product that is
not composed throughout of 950 parts per thousand pure Platinum.
(2) Use of the word ``Platinum'' or any abbreviation accompanied by
a number indicating the parts per thousand of pure Platinum contained
in the product without mention of the number of parts per thousand of
other PGM contained in the product, to describe all or part of an
industry product that is not composed throughout of at least 850 parts
per thousand pure platinum, for example, ``600Plat.''
(3) Use of the word ``Platinum'' or any abbreviation thereof, to
mark or describe any product that is not composed throughout of at
least 500 parts per thousand pure Platinum.
16 CFR 23.7(b).
Section 7(c) includes the following four examples of markings and
descriptions that are not considered unfair or deceptive:
(1) The following abbreviations for each of the PGM may be used for
quality marks on articles . . . [section lists the two-letter and four-
letter abbreviations for the PGM].
(2) An industry product consisting of at least 950 parts per
thousand pure Platinum may be marked or described as ``Platinum.''
(3) An industry product consisting of 850 parts per thousand pure
Platinum, 900 parts per thousand pure Platinum or 950 parts per
thousand pure Platinum may be marked ``Platinum,'' provided that the
Platinum marking is preceded by a number indicating the amount in parts
per thousand of pure Platinum. . . . Thus, the following markings may
be used: ``950Pt.,'' ``950Plat.,'' ``900Pt.,'' ``900Plat.,''
``850Pt.,'' or ``850Plat.''
(4) An industry product consisting of at least 950 parts per
thousand PGM, and of at least 500 parts per thousand pure Platinum, may
be marked ``Platinum,'' provided that the mark of each PGM constituent
is preceded by a number indicating the amount in parts per thousand of
each PGM, as for example, ``600Pt.350Ir.,'' 600Plat.350Irid.,''
``550Pt.350Pd.50Ir.,'' or ``550Plat.350Pall.50Irid.''
16 CFR 23.7(c).
On December 15, 2004, Karat Platinum, a jewelry manufacturer,
requested an opinion from the FTC staff regarding the application of
the Jewelry Guides to a product called ``Karat Platinum'' consisting of
585 parts per thousand (``ppt'') pure platinum and 415 ppt copper and
cobalt (non-precious metals).\6\ The request stated that the company's
reading of the Guides indicated that the platinum section did not
prohibit marking or describing the product as ``Platinum'' and that the
Guides did not address how to mark or describe an alloy with this
composition other than to require that any representation be truthful
and not misrepresent the product's composition.
---------------------------------------------------------------------------
\6\ The request for a staff opinion and the staff's response to
that request can be found at www.ftc.gov/os/statutes/jewelry/
letters/karatplatinum.pdf and www.ftc.gov/os/statutes/jewelry/
letters/karatplatinum002.pdf, respectively.
---------------------------------------------------------------------------
The staff posted this request on the FTC's website on December 17,
2004 and invited the industry to provide comments by January 5,
2005.\7\ The staff
[[Page 10192]]
received sixteen comments from jewelry trade associations and
retailers.\8\
---------------------------------------------------------------------------
\7\ The staff later extended the comment period until January
10, 2005.
\8\ The Jewelers Vigilance Committee, Platinum Guild
International, Manufacturing Jewelers & Suppliers of America,
American Gem Society, Jewelers of America, Sonny's On Fillmore,
Kwiat, Inc., Cornell's Jewelers, Michael Bondanza, Inc., PMI,
Traditional Jewelers, Stanley Jewelers Gemologist, Davidson & Licht,
Henne Jewelers, Johnson Matthey, and MJ Christensen submitted
comments.
---------------------------------------------------------------------------
On February 2, 2005, the staff responded to the request for an
opinion stating:
The Guides provide that, in order for a product to be marked or
described as ``platinum,'' the product must contain a minimum of 500
ppt pure platinum. 16 CFR Sec. 23.7(b)(3). In addition, the Guides
provide that, if a product contains 500 ppt pure platinum but less than
850 ppt pure platinum, the marketer must disclose the amount in ppt of
the remaining PGM in the product. 16 CFR Sec. 23.7(b)(2).
In our opinion, a literal reading of the Guides indicates that they do
not address the marketing of the Karat Platinum alloy, except to the
extent that they require a minimum of 500 ppt pure platinum. The
provisions of Section 23.7 that address misuse of the word ``platinum''
do not discuss how to mark or describe an alloy that contains over 500
ppt pure platinum but no other PGM.
The staff letter further explained that the marketing of the Karat
Platinum alloy would be subject to Section 23.1 of the Guides, which
contains a general statement on deception, as well as Section 5 of the
FTC Act.\9\
The letter stated that the staff considered ``this alloy to be
sufficiently different in composition from products consisting of
platinum and other PGM to require clear and conspicuous disclosure of
the differences.'' The staff letter also stated that it did not appear
``that simple stamping of the jewelry's content (e.g., 585 Plat., 0
PGM) would be sufficient to alert consumers to the differences between
the Karat Platinum alloy and platinum products containing other PGM.''
---------------------------------------------------------------------------
\9\ Section 5 of the FTC Act prohibits deceptive acts or
practices, in or affecting commerce. 15 U.S.C. 45(a).
---------------------------------------------------------------------------
Because of the public interest in this issue, on July 6, 2005, the
Commission issued a Federal Register notice soliciting public comment
regarding whether it should revise the Guides to address products
composed of at least 500 ppt, but less than 850 ppt, pure platinum and
no other PGM. The Commission received comments through the extended
October 12, 2005 deadline.\10\
---------------------------------------------------------------------------
\10\ 70 FR 57807 (October 4, 2005).
---------------------------------------------------------------------------
Additionally, the notice stated that the staff had received some
inquiries regarding the application of the platinum section of the
Guides to the marketing of platinum-clad or platinum-coated jewelry
products. The platinum section of the Guides currently does not address
platinum-clad, filled, plated, or overlay products. Other sections of
the Guides, however, address gold and silver-plated jewelry
products.\11\ These sections generally advise that the plating must be
of a sufficient thickness to ensure reasonable durability. The 2005
FRN, therefore, also sought comment regarding whether the Guides should
provide guidance on how to mark or describe non-deceptively platinum-
clad, filled, coated, or overlay jewelry products. The Commission
received several comments with regard to this issue stating that there
is a need for guidance for platinum-coated or plated products with
respect to the thickness of the coating and the purity of the
platinum.\12\ Because these comments did not propose specific guidance,
this Federal Register notice is seeking such guidance with regard to
platinum-clad, filled, coated, and overlay jewelry products.
---------------------------------------------------------------------------
\11\See 16 CFR 23.4 and 23.6 (addressing gold-plated, gold-
filled, gold-overlay, gold-electroplated, and silver-plated jewelry
products).
\12\ The Jewelers Vigilance Committee, Platinum Guild
International, and a jeweler manufacturer (Sasha Primak) state that
there is a need for specific guidance regarding the thickness of the
coating or plate and the purity of the platinum employed to cover
the base metal.
---------------------------------------------------------------------------
III. Response to June 2005 Notice Seeking Comment on the Platinum
Section of the Jewelry Guides
A. Summary of Comments
The FTC received 62 comments in response to the 2005 FRN. The FRN
requested comments on two main issues--first, should the platinum
section of the Guides be amended to address jewelry products containing
at least 500 ppt, but less than 850 ppt, pure platinum and no other PGM
(``platinum/base metal alloy''); second, if guidance is appropriate,
what should the guidance provide. With regard to the first issue, the
majority of the comments recommend that the Commission revise the
Guides to include guidance regarding appropriate markings or
descriptions for platinum/base metal alloy jewelry products. A joint
comment from several jewelry trade associations\13\ (hereinafter
``JVC'') states that ``[i]ndustry members universally believe that the
Guides should be revised to address products that contain 500-850 ppt
pure platinum and no other PGM. Since products employing this alloy
(and others) have become available, clarity in marking and description
standards for these products is needed.''\14\ Similarly, a comment from
Platinum Guild International (``PGI'') recommends that ``the FTC amend
the Platinum Guides and provide for an unambiguous and transparent
standard.''\15\ The majority of the comments from jewelry retailers
support the JVC and PGI recommendations.\16\
---------------------------------------------------------------------------
\13\ The associations include: Jewelers Vigilance Committee,
Manufacturing Jewelers and Suppliers of America, Jewelers of
America, and American Gem Society.
\14\ JVC comment at 3.
\15\ PGI comment at 24.
\16\ The following comments recommend that the Commission revise
the Guides to include guidance regarding products contain 500 ppt,
but less than 850 ppt, pure platinum and no other PGM: Kwiat; Albert
Malky, Inc.; John A. Green (Lux Bond & Green); Loyd Stanley (Stanley
Jewelers Gemologist); JCK Publishing; Traditional Jewelers; Cathy
Carmendy, Inc.; Joan Mansbach (Mansbach Creative); M. Fabrikant &
Sons; Renee Moskowitz (Harper's Bazaar); Nessi Erkmenaoglu (Harper's
Bazaar); Stephen Walker (Walker Metalsmiths, Inc.); Lieberfarb,
Inc.; Gemstones, Etc.; Saturn Jewels; Kaiser Time, Inc.; Coge Design
Group; Day's Jewelers; Stuller, Inc.; Harvey Rovinsky (Bernie
Robbins Fine Jewelry); JCM Designs, Inc., d/b/a Judith Conway;
Joseph Barnard (Bernie Robbins Fine Jewelry); Jeff Cooper, Inc.;
Alexander Primak Jewelry, Inc.; Hearts on Fire Co.; Kirk Kara; Vogue
Magazine; Allan Freilich (Freilich Jewelers, Inc.); Cede
Schmuckdesign GmbH; Representative Henry A. Waxman (writing on
behalf of Martin Katz, Ltd.); Grando, Inc.; Susan Eisen (Susan Eisen
Fine Jewelry and Watches); Zoltan David (Zoltan David Precious Metal
Art); and Brian Guymon.
---------------------------------------------------------------------------
Karat Platinum's comment takes a contrary position. Karat Platinum
asserts that the Commission does not need to amend the Guides because
the existing guidance in the platinum section, combined with the staff
opinion letter issued in February 2005,\17\ adequately inform marketers
how to mark or describe such products.
---------------------------------------------------------------------------
\17\See supra note 6.
---------------------------------------------------------------------------
With regard to the second issue, commenters disagree about the
guidance the Commission should provide for the marketing of platinum/
base metal alloy jewelry. The JVC and PGI comments argue that the
Commission should revise the Guides to prohibit marketers from marking
or describing platinum/base metal alloy jewelry as ``platinum''
entirely.\18\ JVC and PGI assert that
[[Page 10193]]
platinum is not like gold, which requires mixing with an alloy to make
it more durable for jewelry.\19\ Platinum jewelry, JVC and PGI explain,
has always been produced as nearly pure or combined with other PGM. JVC
and PGI state that alloys with non-PGM do not share the same
characteristics as pure platinum or platinum alloyed with PGM.\20\
These comments assert that disclosure of the differences between the
two types of alloys would be complicated and highly technical and
likely engender significant consumer confusion and deception.\21\
---------------------------------------------------------------------------
\18\ JVC comment at 4; PGI comment at 26. The following
additional comments support this recommendation: Kwiat; Albert
Malky, Inc.; John A. Green (Lux Bond & Green); C.F. Kisner, Inc.;
Loyd Stanley (Stanley Jewelers Gemologist); JCK Publishing; Dana
Sergenian; Traditional Jewelers; Cathy Carmendy, Inc.; Joan Mansbach
(Mansbach Creative); M. Fabrikant & Sons; Renee Moskowitz (Harper's
Bazaar); Nessi Erkmenaoglu (Harper's Bazaar); Robert Rowe (Lucky
Magazine); Lieberfard, Inc.; Richard Krementz Gemstones; Saturn
Jewels; Kaiser Time, Inc.; Hank Siegel (Hamilton Company); Vittorio
Bassan (Stuart Moore, Ltd.); Coge Design Group; Day's Jewelers;
Stuller, Inc.; Harvey Rovinsky (Bernie Robbins Fine Jewelry); JCM
Designs, Inc., d/b/a Judith Conway; Joseph Barnard (Bernie Robbins
Fine Jewelry); Jeff Cooper, Inc.; Alexander Primak Jewelry, Inc.;
Hearts on Fire Co.; Kirk Kara; Vogue Magazine; Allan Freilick
(Freilich Jewelers, Inc.); Cede Schmuckdesign GmbH; Representative
Henry A. Waxman (writing on behalf of Martin Katz, Ltd.); Grando,
Inc.; Susan Eisen (Susan Eisen Fine Jewelry and Watches); Zoltan
David (Zoltan David Precious Metal Art); Techform Advanced Casting
Technology; Douglas Liebman (Douglas M. Liebman, Inc.); Brian
Guymon; and Wayne Schenk.
\19\ JVC comment at 4; PGI comment at 16.
\20\ JVC comment at 7-8; PGI comment at 17-19.
\21\ JVC comment at 7; PGI comment at 15.
---------------------------------------------------------------------------
As its primary support, PGI commissioned a study from Thomas J.
Maronick, titled ``Platinum Awareness Study: An Empirical Analysis of
Consumers' Perceptions of Platinum as an Option in Engagement Ring
Settings'' (``Maronick study''). The Maronick study polled 332
consumers, aged 21 through 34, who expect to become engaged in the next
12 months. PGI also submitted a 2003 marketing survey conducted by Hall
& Partners (``Hall & Partners study'') that consisted of 600 online
interviews of women (ages 18-34) and men (ages 25-34). Additionally,
PGI submitted two tests evaluating platinum/base metal alloys. The
first test, by Hoover & Strong, compared a product that contained 59.2%
platinum, 36.59% copper, 3.9% cobalt and trace amounts of gold, silver,
and nickel to three products, one containing 950 ppt pure platinum, one
containing 950 ppt palladium, and one containing 14 karat white gold.
The second test, by Daniel Ballard of Precious Metals West, evaluated
the properties of three different 585 ppt pure platinum/base metal
alloys. It does not appear that the PGI tests evaluated a product
identical in composition to the Karat Platinum platinum/base metal
alloy.
The Maronick study concludes that consumers expect a high level of
purity in a product marked ``platinum.'' The majority of consumers
surveyed stated that they would expect a ring labeled ``platinum'' to
contain 80% or more pure platinum.\22\ The Maronick study also reports
that if a ring has 40% or more non-PGM, over a third of the consumers
surveyed would not expect the ring to be called ``platinum.''\23\ If
the ring does not have all of the properties of pure platinum, more
than 50% percent of consumers polled would not expect it to be called
``platinum.''\24\ The study further reports that even if a platinum
product with 40% base metals shared all the properties of pure platinum
products, 29% of consumers would not expect the product to be called
``platinum.''\25\
---------------------------------------------------------------------------
\22\ PGI Comment, Attachment A, at Table 3.
\23\Id., Table 7.
\24\Id., Table 11.
\25\Id., Table 8.
---------------------------------------------------------------------------
In addition, according to the study, 88% of consumers polled felt
it was at least somewhat important to know the properties of a product
before purchase (two-thirds of these consumers felt it was very
important).\26\ The study further concludes that the properties
typically associated with platinum are important to most consumers'
purchasing decisions. Specifically, between 60% and 90% of consumers
polled responded that it was important to know a jewelry product's
weight (76.2%) and whether the product is durable (93%), scratch and
tarnish resistant (89.8% and 90.5%, respectively), able to be resized
(82.2%), and hypoallergenic (64.4%).\27\
---------------------------------------------------------------------------
\26\Id., Table 12.
\27\Id., Table 13.
---------------------------------------------------------------------------
To further support its position, PGI refers to the Hall & Partners
survey, which reported that the majority of consumers polled associate
rarity, strength, and purity with platinum jewelry.\28\ These consumers
also view platinum as superior to other metals.\29\
---------------------------------------------------------------------------
\28\ PGI Comment, Attachment B, at 16, 28.
\29\Id. at 15, 25.
---------------------------------------------------------------------------
The PGI and JVC comments assert that, because consumers understand
platinum jewelry to be a pure or nearly pure product, marking products
with lower amounts of pure platinum and no other PGM as ``platinum'' is
deceptive.\30\ JVC and PGI explain that consumers believe that using
the word ``platinum'' conveys that the product is pure and contains the
qualities consumers expect from traditional platinum jewelry.
---------------------------------------------------------------------------
\30\ JVC comment at 7-8; PGI comment at 17-19.
---------------------------------------------------------------------------
The PGI and JVC comments also assert that consumers do not
understand numeric jewelry markings listing metal content, such as
585Pt/0PGM or 585Pt./415 Co.Cu., or the karat systems used for gold
markings.\31\ The Maronick study asked consumers whether they knew what
585 plat; 0 pgm meant and only 5.2% responded yes.\32\ Of that 5.2%,
however, only two consumers (less than 1% of the total consumers
surveyed) correctly described the marking. The Maronick study also
probed whether consumers understood a platinum/base metal alloy
marking, ``585 plat; 415 CO/CU.'' Only 7.5% stated they knew what this
marking meant, but only 6.9% of those consumers actually understood
that the marking described the proportion of platinum and other metals
in the jewelry product.\33\ Similarly, with respect to gold markings,
the Maronick study reports that although 82.2% of respondents indicated
they knew what 14 karat gold meant, only 16% of those respondents
accurately indicated that it meant 58-59% gold.\34\
---------------------------------------------------------------------------
\31\ PGI comment, Attachment A, Table 14. JVC notes that
consumers are not experts in the Periodic Table of Elements and
likely would not even know that ``Co'' is the abbreviation for
copper. JVC comment at 7.
\32\ PGI comment, Attachment A, at 25.
\33\Id. at 26.
\34\Id. at 24.
---------------------------------------------------------------------------
In addition, the PGI product testing shows that certain platinum/
base metal alloys are inferior to platinum/other PGM alloys in terms of
wear and oxidation resistance, weight loss, and ability to withstand a
welding/soldering procedure for sizing.\35\ The testing further shows
that the platinum/base metal alloys in these tests may not be
hypoallergenic.\36\ It is not clear from the testing PGI submitted that
all platinum jewelry products with less than 850 ppt pure platinum
alloyed with base metals would yield the same test results. These tests
evaluated products with 58.5-59.2% pure platinum. The record does not
address whether products that contain a higher percentage of platinum,
or the same percentage of platinum alloyed with different base metals,
would produce different test results.
---------------------------------------------------------------------------
\35\ PGI comment, Attachment C.
\36\ PGI comment, Attachment D.
---------------------------------------------------------------------------
Based on their tests, JVC and PGI assert that, to avoid deception,
marketers would need to disclose how platinum/base metal alloy jewelry
products differ from traditional platinum jewelry in durability,
strength, hypoallergenic properties, weight, purity, scratch
resistance, tarnishability, and ability of jewelers to repair or resize
the product. PGI and JVC, however, contend that appropriate and
prominent disclosures addressing such extensive information are not
feasible at the retail level.\37\ Accordingly, JVC and PGI assert
[[Page 10194]]
that given consumers' perceptions of platinum jewelry, consumer
confusion regarding jewelry markings, and their testing data, the
appropriate course to avoid deception is to amend the Guides to state
that products that do not contain at least 50% platinum and a
combination of at least 950 ppt pure platinum and other PGM cannot be
marked or described ``platinum.''\38\
---------------------------------------------------------------------------
\37\ PGI contends that the Hall & Partners study supports this
assertion. That study showed that only 25-30% of those people
surveyed responded that sales people explained the differences
between the different metals (gold, white gold, and platinum), and
only 22-24% of consumers surveyed believed that sales people helped
them to understand the differences. PGI comment, Attachment B.
\38\ JVC comment at 4; PGI comment at 26.
---------------------------------------------------------------------------
JVC and PGI further submit that state laws in California, New York,
New Jersey, Illinois, and Wisconsin do not permit platinum/base metal
alloy jewelry products to be marked or described as ``platinum.'' These
state laws are based on historical Department of Commerce Voluntary
Product Standards (``VPS''). JVC explains that the five state statutes
require products to contain 950 ppt pure platinum (with solder) or 985
ppt (without solder) to be marked or marketed as ``platinum'' without
qualification.\39\ These statutes permit qualified platinum markings
for products with at least 500 ppt pure platinum and 950 ppt total
PGM.\40\
---------------------------------------------------------------------------
\39\ PGI comment at 3, 9 & n.33; JVC comment at 2 & n.2. Both
PGI and JVC cite Cal. Bus. & Prof. Code Sec. Sec. 22120-22132; Ill.
Comp. Stat. Sec. Sec. 395/0.01-395/0.11 (Platinum Sales Act); N.J.
Stat. Sec. 51:6 (Platinum and Alloys); N.Y. Gen. Bus. Sec. Sec.
230-238 (Platinum Stamping); Wis. Stat. Sec. 134.33 (Platinum
Stamping).
\40\ The statutes require that marketers must disclose the
product composition indicating the number in ppt of each metal to
qualify the platinum marking. See Cal. Bus. & Prof. Code Sec. Sec.
22120-22132; Ill. Comp. Stat. Sec. Sec. 395/0.01-395/0.11 (Platinum
Sales Act); N.J. Stat. Sec. 51:6 (Platinum and Alloys); N.Y. Gen.
Bus. Sec. Sec. 230-238 (Platinum Stamping); Wis. Stat. Sec. 134.33
(Platinum Stamping).
---------------------------------------------------------------------------
Finally, JVC and PGI state that the International Standards
Organization (``ISO'') standard for platinum markings also precludes
marking or describing products as platinum unless they contain at least
850 ppt pure platinum.\41\ JVC and PGI contend, that because many
countries have adopted ISO standards, platinum/base metal alloy jewelry
generally could not be marked as ``platinum'' if sold abroad.\42\
---------------------------------------------------------------------------
\41\ JVC comment at 8 & n.4; PGI comment at 20 (both citing ISO
9202:1991(E), ``Jewellery - Fineness of precious metal alloys'').
PGI explained that the ISO standard provides for three values in ppt
for platinum jewelry: 950, 900, and 850. Id.
\42\ JVC comment at 8; PGI comment at 20.
---------------------------------------------------------------------------
Karat Platinum disagrees with JVC's and PGI's positions on
virtually every point. First, Karat Platinum states, that if the
Commission determines that revising the Guides is appropriate, the
revised Guides should simply codify the language in the February 2005
staff opinion letter. Karat Platinum further asserts that its platinum/
base metal alloy does share almost all of the same qualities as
traditional platinum products.\43\ It submitted testing of its alloy
showing that it is superior to traditional platinum products in terms
of strength, hardness, and casting ability, and that its ability to
resist corrosion is equivalent to other platinum products. The only
attribute of potential difference, according to Karat Platinum's study,
is density--its platinum/base metal alloy is less dense.\44\ Karat
Platinum's test did not evaluate whether its alloy is hypoallergenic.
---------------------------------------------------------------------------
\43\Karat Platinum comment at 2.
\44\Id. at 3 and Exhibit A.
---------------------------------------------------------------------------
Karat Platinum further explains that, consistent with the FTC
staff's advice, it will disclose its product's full composition, which
will give consumers complete information about the content of the
product and promote it as a ``new product.''\45\ Karat Platinum did not
submit any consumer survey evidence evaluating how consumers interpret
its proposed marketing. It asserts, however, that consumers will
understand that its product contains less platinum than traditional
platinum jewelry because the description will put consumers on notice
about the amount of platinum in the product and the ``new''
representations will alert consumers that it is different.\46\ Karat
Platinum asserts that consumers do understand karat markings. Karat
Platinum argues that consumers know that gold has different levels of
purity and is alloyed with different metals, and will similarly
understand that platinum jewelry is not pure and is alloyed with
different metals.\47\
---------------------------------------------------------------------------
\45\Id. at 4.
\46\Id. at 5.
\47\Id. at 6-7.
---------------------------------------------------------------------------
Prohibiting marketers from using the word ``platinum'' because a
product contains less than 85% platinum and no other PGM will not
benefit consumers, according to Karat Platinum. This prohibition, Karat
Platinum contends, will deprive consumers of truthful and accurate
information about the product and the opportunity to own more
affordable, high quality platinum jewelry.\48\
---------------------------------------------------------------------------
\48\Id. at 1.
---------------------------------------------------------------------------
B. Analysis of the Comments
The record supports the following conclusions: (1) a substantial
number of consumers believe products marked or described as
``platinum'' are pure and possess certain desirable qualities; (2) a
substantial number of consumers generally would not expect platinum/
base metal alloy jewelry to be marked or described ``platinum''; (3)
many consumers do not fully understand numeric jewelry markings and
chemical symbols and may find them confusing; (4) testing data in the
record suggests that some platinum/base metal alloys do not possess all
of the qualities of higher purity platinum jewelry that consumers
expect; and (5) the consumer perception and product testing data
support revising the Guides to address the marketing of platinum/base
metal alloys, as explained below.
1. Consumer Perceptions Regarding the Use of the Term ``Platinum''
The survey evidence PGI submitted, particularly the Maronick study,
provides insight into consumer perceptions regarding the use of the
term ``platinum'' to describe jewelry. The Maronick study presents
evidence that many consumers understand that products marked or
described as ``platinum'' are pure or nearly pure and that certain
qualities or attributes typically associated with platinum are
important to a substantial number of consumers. These qualities or
attributes include the product's weight, durability, scratch and
tarnish resistance, and whether it is hypoallergenic and can be
resized.
2. Consumer Expectations Regarding Products Described as ``Platinum''
The Maronick study further found that a majority of consumers would
not expect platinum/base metal alloys containing more than 40% base
metal to be called ``platinum,'' particularly if they do not possess
the qualities and attributes present in higher purity platinum or
platinum/other PGM products, such as those containing at least 850 ppt
pure platinum, or at least 500 ppt pure platinum and at least 950 ppt
PGM. These findings indicate that many consumers have high expectations
regarding products described as platinum, and draw the conclusion that
such products possess certain qualities or attributes that make them
superior to products consisting of other metals (e.g., superior
strength, durability, and resistance to scratching and tarnishing).
3. Consumer Understanding of Numeric Jewelry Markings
The Maronick study also provides evidence that many consumers do
not fully understand numeric jewelry markings, particularly those using
chemical symbols, such as 585 Pt./415 Co.Cu. The Maronick study,
however, does not address what consumers take away from these numeric
and symbolic markings for platinum jewelry products. The study asked
consumers: ``Do you
[[Page 10195]]
know what `585plat, 415 CO/CU' means?'' If consumers said no, the study
did not ask follow up questions probing their actual understanding.\49\
While consumers clearly could not identify the metals represented by
the markings, it is not clear whether they understood that the product
contained platinum and two other metals or that it contained a lower
percentage of platinum than products without the markings. In a
potentially analogous situation, the Maronick study showed that, even
though many consumers cannot define the term ``14 karat gold''
accurately, the term does convey important information. Specifically,
consumers understand that ``14 karat'' represents the amount of gold in
the product, and that 18 karat gold jewelry contains more gold than 14
karat gold jewelry.\50\
---------------------------------------------------------------------------
\49\ PGI Comment, Attachment A, at 42.
\50\Id. at 24.
---------------------------------------------------------------------------
While numerical and chemical markings may provide some useful
information to consumers, the record indicates that even using full
names and no chemical abbreviations to disclose the composition of
platinum/base metal alloys may be inadequate. Specifically, the
Maronick study shows that many consumers expect products described as
platinum to have certain qualities and attributes, even if they consist
in part of non-platinum group metals. Disclosure using full chemical
names, therefore, might not provide adequate notice that the product
may differ from products containing at least 850 ppt pure platinum, or
at least 500 ppt pure platinum and at least 950 ppt PGM, with respect
to one or more qualities or attributes important to consumers.
4. Testing Data of Platinum/Base Metal Alloys
It is, therefore, important to determine whether platinum/base
metal alloys have the same properties as products containing at least
850 ppt pure platinum, or at least 500 ppt pure platinum and at least
950 ppt PGM. The record provides a useful, albeit inconclusive, answer.
Specifically, the record suggests that at least some platinum/base
metal alloys do not possess all of the qualities of products containing
at least 850 ppt pure platinum, or at least 500 ppt pure platinum and
at least 950 ppt PGM. On one hand, PGI's testing indicates that certain
platinum/base metal alloys are inferior to higher purity platinum
jewelry in terms of wear and oxidation resistance, as well as weight
loss, and that they cannot be resized using certain procedures.\51\ On
the other hand, Karat Platinum's testing suggests that its alloy is
superior or equivalent to higher purity platinum jewelry in several
respects. Karat Platinum's testing, however, showed that its alloy is
less dense than higher purity platinum jewelry, and it did not test
whether the alloy is hypoallergenic.
---------------------------------------------------------------------------
\51\ PGI did not test Karat Platinum's alloy.
---------------------------------------------------------------------------
Accordingly, the record is incomplete regarding the extent to which
platinum/base metal alloys differ from higher purity platinum or
platinum/other PGM jewelry with respect to those qualities material to
consumers' purchasing decisions. The record is also incomplete
regarding the extent to which the qualities and attributes of jewelry
differ depending on the percentage of platinum and the type and
percentage of base metal in the jewelry. The record does indicate,
however, that at least some platinum/base metal alloys likely do not
have all, or substantially all, of the qualities or attributes that
consumers view as important in purer platinum products, such as those
containing at least 850 ppt pure platinum, or at least 500 ppt pure
platinum and at least 950 ppt PGM.
5. The Record Supports Amending the Platinum Section of the Guides
The record on consumer perception and the product testing described
above supports amending the Guides to address the marketing of
platinum/base metal alloys. In particular, the record supports revising
the Guides to state that marketers may describe platinum/base metal
alloys as platinum, provided they adequately qualify the claim.
The platinum section of the FTC's Jewelry Guides currently provides
that the unqualified use of the word ``platinum'' is deceptive for
products that do not contain 950 ppt or more pure platinum. It also
provides guidance on how marketers may qualify the word to describe
certain products containing less than 950 ppt pure platinum. The
Guides, however, do not address claims for products containing at least
500 ppt pure platinum alloyed with base metals. The JVC, PGI, and
numerous retailers recommend that the FTC amend the platinum section of
the Guides to state that even the qualified use of the word
``platinum'' to describe these products would deceive consumers.\52\
Based on the current record, however, the Commission cannot conclude
that the properly qualified use of the word platinum to describe every
platinum/base metal alloy would materially mislead consumers.
Accordingly, we do not propose to amend the Guides in this manner.
---------------------------------------------------------------------------
\52\ JVC and PGI acknowledge that a qualified use of the word
``platinum'' could, in theory, address consumer confusion or
deception stemming from the use of the term ``platinum'' to describe
platinum/base metal alloys. Yet, JVC and PGI assert that it would be
impracticable and likely ineffective to make the lengthy, detailed
disclosures that they believe would be needed to prevent deception.
---------------------------------------------------------------------------
The weight of the evidence leads us to conclude that there is a
high probability of consumer deception if marketers describe platinum/
base metal alloys as ``platinum'' qualified only with a disclosure of
the product's metal content using numbers and chemical
abbreviations.\53\ As discussed above, the record indicates that many
consumers have pre-existing beliefs about the qualities of products
marked or described as ``platinum,'' and at least some platinum/base
metal alloys may not meet their expectations. The record also provides
evidence that numeric markings and chemical abbreviations confuse many
consumers. Thus, describing a platinum/base metal alloy as platinum and
disclosing its metal content using numbers and chemical abbreviations
would most likely fail to inform many consumers that the product
differs from traditional platinum products with respect to the
product's purity as well as the qualities and attributes important to
consumers. The record, therefore, demonstrates that marketers selling
platinum/base metal alloys should disclose more detailed information to
prevent deception.
---------------------------------------------------------------------------
\53\ Karat Platinum's suggestion that it will also market the
product as ``new,'' which, it contends, conveys that the product
differs from traditional platinum products and should prompt
consumers to seek information about the product, is, at best, a
temporary solution. Karat Platinum presumably will not market this
product as ``new'' forever. In any event, a mere representation that
a product is new would not disclose how it differs from products
containing a higher percentage of platinum.
---------------------------------------------------------------------------
To address potential consumer confusion regarding numbers and
chemical abbreviations, the Commission proposes amending the Guides to
state that marketers of platinum/base metal alloys described as
platinum should expressly disclose that the product contains platinum
and other non-platinum group metals and also separately disclose the
product's full composition, by name and not abbreviation, and the
percentage of each other metal in the product.\54\ By
[[Page 10196]]
disclosing the composition of the jewelry in this manner, marketers
would alert consumers to the presence of particular metals and help
prevent deception regarding the purity of products described as
platinum.
---------------------------------------------------------------------------
\54\ This disclosure provides for the use of percentages rather
than ppt because the survey evidence revealed that ppt markings,
like numbers and chemical abbreviations, confuse consumers. The
other provisions of the platinum section of the Guides provide for
compositional disclosures using ppt. As discussed below, the
proposed amendment would allow for the physical stamping of
platinum/base metal alloy jewelry using ppt and chemical
abbreviations. It is only the full composition disclosure that will
differ in that it provides for the use of percentages.
---------------------------------------------------------------------------
For the reasons noted above, a full name composition disclosure
should alleviate the confusion regarding a platinum/base metal alloy
product's purity but would not necessarily alleviate all confusion
regarding the product's other properties. The record demonstrates that
use of the word ``platinum,'' even in conjunction with a compositional
disclosure, conveys important quality information to consumers (i.e.,
that the product possesses qualities typically associated with
platinum). As such, the record indicates a need for additional
disclosure to prevent deception. Therefore, the proposed Guides state
that marketers should expressly disclose that a platinum/base metal
alloy product may not have all the properties that consumers associate
with higher purity platinum/other PGM products.
The record does not address whether the term Karat Platinum or
other qualifying moniker, either in conjunction with a compositional
disclosure or without one, might imply that the product either differs
in some respects from other products containing platinum or is
comparable to other such products in material respects. Thus, we do not
have a basis to conclude that use of the term Karat Platinum or other
qualifying moniker will sufficiently alert consumers to the potential
differences between platinum/base metal alloy jewelry products and
higher purity platinum/other PGM products with respect to the
properties material to consumers.
As noted earlier, the record does not include sufficient evidence
for the Commission to identify which platinum/base metal alloys differ
from products containing at least 850 ppt pure platinum, or at least
500 ppt pure platinum and at least 950 ppt PGM, and with respect to
which attributes. Some platinum/base metal alloys, however, may be
equivalent to products containing at least 850 ppt pure platinum, or at
least 500 ppt pure platinum and at least 950 ppt PGM, with respect to
some, or all, of the attributes important to consumers depending upon
the percentage of platinum and both the percentages and types of base
metals. For this reason, the proposed amendment provides that a
marketer need not disclose that its product may not have the same
attributes or properties as products containing at least 850 ppt pure
platinum, or at least 500 ppt pure platinum and at least 950 ppt PGM,
if the marketer has competent and reliable scientific evidence that,
with respect to all attributes or properties material to consumers
(e.g., the product's durability, hypoallergenicity, resistance to
tarnishing and scratching, and the ability to resize or repair the
product), such product is equivalent to products containing at least
850 ppt pure platinum, or at least 500 ppt pure platinum and at least
950 ppt PGM.
C. Harmonization with State Law and International Standards
The record includes evidence that laws in at least five states and
an ISO standard that some countries have adopted do not permit
platinum/base metal alloy products to be marked or described as
``platinum.'' Thus, JVC and PGI contend that, if the FTC issues
guidance allowing such products to be marked as ``platinum,'' our
Guides will conflict with state law and international standards.
Although the Commission generally prefers to harmonize its guidance
with state and international laws and standards, Commission Guides must
be based upon the Section 5 deception or unfairness standard.\55\
---------------------------------------------------------------------------
\55\ The Trade Agreements Act of 1979 states that no federal
agency ``may engage in standards-related activity that creates
unnecessary obstacles to the foreign commerce of the United States
and that federal agencies must, in developing standards take into
consideration international standards and shall, if appropriate,
base the standards on international standards.'' 19 U.S.C. Sec.
2532(2)(A). The term ``standard'' in the Act includes guidelines
that are not mandatory, such as the Jewelry Guides. The Act
provides, however, that ``the prevention of deceptive practices'' is
an area where basing a standard on an international standard ``may
not be appropriate.'' Id. at Sec. 2532(2)(B)(i)(II).
---------------------------------------------------------------------------
The state laws and the ISO standard discussed above are not based
upon a deception or unfairness standard. As explained above, the state
laws that JVC and PGI cite are based upon VPS that the Department of
Commerce promulgated 75 years ago.\56\ VPS are developed through
general consensus among affected parties.\57\ Similarly, ISO standards
are technical industry standards developed through a consensus-building
process.\58\ Accordingly, although harmonization with state laws and
international standards is typically favored, where, as here, our
analysis of consumer perception data reveals that there is insufficient
evidence that a particular claim (i.e., a qualified platinum
representation) is deceptive, the Commission cannot promulgate a guide
stating that marketers should not make the representation solely to
achieve harmony.
---------------------------------------------------------------------------
\56\ 61 FR 27185 n.99 (May 30, 1996) (explaining that the
Commerce standards were promulgated in 1933).
\57\See 15 C.F.R. Part 10.3 (setting forth the procedures for
the development of VPS). The states'statutes adopted the VPS
verbatim many years ago (e.g., California in 1941; New York in 1965;
Wisconsin in 1979). Even if the states conducted an independent
deception analysis when they adopted these standards, it is likely
that consumer perception regarding platinum representations and the
marketplace has changed over time. Indeed, it does not appear that
any platinum/base metal alloy jewelry products marketed as platinum
existed when the states adopted these standards. In addition, these
state statutes already conflict with the current platinum Guides.
The Commission revised the Guides in 1997 to harmonize the treatment
of platinum products containing 850, 900, or 950 ppt pure platinum
with the ISO standard and to simplify the Commission's guidance for
products containing less than 850 ppt, but more than 500 ppt, pure
platinum and 950 ppt PGM. The state statutes mirror the FTC's pre-
1997 Guides for these categories of platinum products. For example,
the state statutes provide that products containing at least 750
ppt, but less than 950 ppt pure platinum (with solder; 985 ppt
without solder) and 950 ppt PGM, may be marked platinum provided the
name or abbreviation of the other PGM that predominates precedes the
word platinum (e.g., Irid-Plat.). See, e.g., N.Y. Gen. Bus. Law
Sec. 234(b). Consistent with the ISO standard, the current Guides
provide that products containing 850 ppt or more pure platinum may
be ``platinum'' provided the name or abbreviation is preceded with
the amount in ppt of the platinum in the product. For products
containing at least 750 ppt, but less than 850 ppt, pure platinum
and 950 ppt other PGM, the Guides provide that marketers should
disclose both the amount in ppt of pure platinum in the product and
other PGM. 16 C.F.R. Sec. Sec. 23.7(c)(3-4).
\58\See www.iso.org/iso/standards_development/process_and_
procedures/ how_are_standards_ developed.htm (explaining that ISO
standards are developed through a consensus-building phase that
takes into account the views of manufacturers, vendors and users,
consumer groups, testing laboratories, engineering professionals,
and research organizations).
---------------------------------------------------------------------------
IV. Proposed Amendment to Platinum Section of the Jewelry Guides
A. Proposed Amendment
Based on the analysis above, the Commission seeks comment on a
proposed amendment to Section 23.7(b) of the Jewelry Guides. The
proposed amendment would allow marketers to physically mark or stamp
platinum/base metal alloy jewelry with a standard platinum jewelry
marking that lists the product's chemical composition (e.g., 585 Pt./
415 Co.Cu.), but also states that when making any other representation
that the product contains platinum they should disclose additional
information. This proposed amendment states that, to avoid misleading
consumers, marketers should clearly and conspicuously disclose,
immediately following the name or description of the product: (i) that
the product contains platinum and
[[Page 10197]]
other non-platinum group metals;\59\ (ii) the product's full
composition, by name and not abbreviation, and the percentage of each
metal;\60\ and (iii) that the product may not have the same attributes
or properties as products containing at least 850 ppt pure platinum, or
at least 500 ppt pure platinum and at least 950 ppt PGM.\61\
---------------------------------------------------------------------------
\59\ The proposed Guide provides for this disclosure for
products that contain at least 500 parts per thousand, but less than
850 parts per thousand, pure Platinum, and do not contain at least
950 parts per thousand PGM. As such the provision applies to
platinum/base metal alloys but would also apply to a product that
contains platinum, base metals, and other platinum group metals--
e.g., 58.5% Platinum, 35% Copper/Cobalt, 10% Iridium. The second
disclosure, providing for a full name compositional disclosure,
would inform consumers of the presence of the other platinum group
metals in the product. Nothing in the Guide, however, would prohibit
marketers from also truthfully disclosing in this first disclosure
that the product contains other platinum group metals (e.g., this
product contains platinum, other platinum group metals and other
non-platinum group metals).
\60\ The proposed Guide provides that when using percentages to
qualify platinum representations, marketers should convert the
amount in parts per thousand to a percentage that is accurate to the
first decimal place (e.g., 58.5% Platinum, 41.5% Copper/Cobalt).
\61\ By making the second of these disclosures, a marketer would
not satisfy the requirements of the first disclosure. Specifically,
a consumer who received the composition disclosure would only
understand that the alloy contained non-platinum group metals if he
or she knew which metals comprised that group. The record, however,
while not specifically addressing this issue, tends to demonstrate
that many consumers do not have a clear understanding of metal
alloys. Therefore, the first and second disclosures are necessary.
---------------------------------------------------------------------------
As noted above, the record indicates that a substantial percentage
of consumers believe products described as ``platinum'' are pure. The
first proposed disclosure will inform consumers directly that the
product is not pure. In addition, by stating that marketers should
include the full name, not the abbreviation, of each metal, the second
disclosure will alleviate consumer confusion regarding numerical,
abbreviated descriptions of jewelry content. The third proposed
disclosure is designed to avert deception regarding quality information
conveyed by the term platinum that the record demonstrates likely will
not be addressed by a content disclosure alone.
However, because some platinum/base alloy products may possess all
the attributes or qualities of platinum jewelry that are important to
consumers, the proposed amendment contains an additional provision.
That provision provides that a marketer does not need to make this
third disclosure if the marketer has competent and reliable scientific
evidence that, with respect to all attributes or properties material to
consumers (e.g., the product's durability, hypoallergenicity,
resistance to tarnishing and scratching, and the ability to resize or
repair the product), such product is equivalent to products containing
at least 850 ppt pure platinum, or at least 500 ppt pure platinum and
at least 950 ppt PGM.
The proposed amendment does not contain a definitive listing of the
attributes or properties material to consumers, nor does it specify the
type of scientific substantiation necessary to avoid making the
disclosure. Because the attributes or properties material to consumers
and the nature of the substantiation may change over time, the
Commission believes that flexible guidance is appropriate and that
members of the jewelry industry are well-positioned to comply with such
guidance. The Commission seeks comment on whether such guidance is
sufficiently precise for marketers to avoid deceiving consumers
regarding platinum/base metal alloys.
B. Text of the Proposed Amendment
The Commission proposes adding Section 23.7(b)(4) to the Jewelry
Guides as an additional example of markings or descriptions of platinum
that may be misleading.
The text of the proposed amendment of Section 23.7(b)(4) is as
follows:
(4) Use of the word ``Platinum,'' or any abbreviation accompanied
by a number or percentage indicating the parts per thousand of pure
Platinum contained in the product, to describe all or part of an
industry product that contains at least 500 parts per thousand, but
less than 850 parts per thousand, pure Platinum, and does not contain
at least 950 parts per thousand PGM (for example, ``585 Plat.'')
without a clear and conspicuous disclosure, immediately following the
name or description of such product:
(i) that the product contains Platinum and other non-platinum group
metals;
(ii) the full composition of the product (by name and not
abbreviation) and percentage of each metal; and
(iii) that the product may not have the same attributes or properties
as products containing at least 850 parts per thousand pure Platinum,
or at least 500 parts per thousand pure Platinum and at least 950 parts
per thousand PGM.
Provided, however, that the marketer need not make disclosure
23.7(b)(4)(iii), above, if the marketer has competent and reliable
scientific evidence that, with respect to all attributes or properties
material to consumers (e.g., the product's durability,
hypoallergenicity, resistance to tarnishing and scratching, and the
ability to resize or repair the product), such product is equivalent to
products containing at least 850 parts per thousand pure Platinum, or
at least 500 parts per thousand pure Platinum and at least 950 parts
per thousand PGM.
Provided, further, a product that contains at least 500 parts per
thousand, but less than 850 parts per thousand, pure Platinum, and does
not contain at least 950 parts per thousand PGM, may be marked or
stamped accurately, with a quality marking on the article, using parts
per thousand and standard chemical abbreviations (e.g., 585 Pt., 415
Co.Cu.).
Note to Sec. 23.7(b)(4): When using percentages to qualify platinum
representations, marketers should convert the amount in parts per
thousand to a percentage that is accurate to the first decimal place
(e.g., 58.5% Platinum, 41.5% Copper/Cobalt).
V. Request for Public Comment
The Commission seeks public comment on a proposed amendment to the
platinum section of the Jewelry Guides that provides guidance on how to
mark or describe non-deceptively products that contain at least 500
ppt, but less than 850 ppt, pure platinum, and that do not contain at
least 950 parts per thousand PGM. In addition, the Commission seeks
public comment on whether it should revise the Guides to provide
guidance on how to mark or describe platinum-clad, filled, plated, or
overlay products.\62\
---------------------------------------------------------------------------
\62\See 16 CFR 23.4 and 23.6 (addressing gold-plated, gold-
filled, gold-overlay, gold-electroplated, and silver-plated jewelry
products).
---------------------------------------------------------------------------
The Commission requests written responses to any or all of the
following questions. The Commission requests that responses be as
specific as possible, including a reference to the question being
answered, and a reference to empirical data or other evidence wherever
available and appropriate.
1. Should the Commission amend the platinum section of the Jewelry
Guides by adopting the proposed amendment?
a. If so, why? Please provide any evidence that supports your
answer.
b. If not, why not? Please provide any evidence that supports your
answer.
2. Should the Commission revise the language in the proposed amendment
to provide for additional disclosures to ensure that consumers are not
misled, for example, by including additional, more detailed disclosures
regarding how products that contain at least 500 ppt, but less than 850
ppt, pure platinum, and that do not contain at least 950 parts per
thousand PGM, differ from
[[Page 10198]]
traditional platinum products\63\ in terms of purity and rarity?
---------------------------------------------------------------------------
\63\ ``Traditional P
