CGC Ethical Sourcing & Industry Standards 2

Question 1

A supplier's invoice includes the World Diamond Council System of Warranties statement. What does this statement primarily do?

Accepted Answer

It affirms the diamonds were sourced in line with responsible sourcing and Kimberley Process commitments

Answer

The System of Warranties is a seller's written assurance on invoices that carries Kimberley Process and responsible-sourcing commitments down the chain past the rough stage.

Question 2

Which U.S. law puts the Kimberley Process Certification Scheme into effect for rough diamond imports and exports?

Accepted Answer

Clean Diamond Trade Act of 2003

Answer

The Clean Diamond Trade Act of 2003 requires rough diamonds entering or leaving the U.S. to carry a valid Kimberley Process certificate.

Question 3

Under the FTC Jewelry Guides, which condition does NOT on its own require a gemstone treatment to be disclosed?

Accepted Answer

The treatment was performed outside the United States

Answer

16 CFR 23.22 requires disclosure when a treatment isn't permanent, needs special care, or significantly affects value; where it was done doesn't matter.

Question 4

Under the OECD Due Diligence Guidance for minerals, what comes right after 'identify and assess risks in the supply chain'?

Accepted Answer

Design and implement a strategy to respond to identified risks

Answer

The OECD five steps are: management systems, identify and assess risk, respond to risk, independent audit, then annual public reporting.

Question 5

A jeweler wants to call a lab-grown diamond 'cultured' in an advertisement. Under the 2018 FTC Jewelry Guides, what is required?

Accepted Answer

'Cultured' may be used only if immediately followed by a qualifier such as 'laboratory-created'

Answer

The FTC allows 'cultured' for lab-grown diamonds only with a clear, nearby qualifier like 'laboratory-grown' so consumers aren't misled.

CGC - Certified Gemstone Consultant Practice Test

CGC - Certified Gemstone Consultant Practice Test

CGC Ethical Sourcing & Industry Standards 2