Is AGTAs Lab Grown Diamonds Ban illegal?

I am not an attorney but AGTA’s lab grown diamonds ban feels illegal per se -wrote tom (thomas) chatham to FTC.

There have been a lot of strong reactions coming in after AGTA announced that it will ban Lab Grown Diamonds and Gemstones from its shows.

In fact, one of the top voices in the Lab Grown Diamonds space, Tom Chatham said (paraphrased) – he felt this ban from AGTA is outright illegal and goes against FTC’s own definition of diamond is a diamond regardless of where it is formed.

In fact, Tom wrote a letter to FTC against what he feels is an illegal ban. Tom shared his letter to the FTC with the editor-in-chief of Lab Grown Diamonds Magazine, Sandhya Valecha. A full copy of the letter can be found on our website.

Here is a quick summary of what Tom wrote to the FTC: “The AGTA is using archaic, outdated examples of what is a “mineral” and refuse to except the prior FTC’s position that a diamond is a diamond regardless of where it is formed. Proper terminology is required to inform the buyer of the origin, such as Chatham Created Emerald or “Laboratory Grown Diamond”. One is grown underground, the other grown above ground. End of physical differences.

We, as an industry, compete with natural and /or treated natural stones. We have the same customers whom we sell to at these venues. This ban, if allowed, will block our access to our customers giving the natural stone dealers an unfair advantage. This will cost us sales and lost profits. Plus, it will deny the buyer and consumer access to this competitive product category.”

When our editor-in-chief, Sandhya Valecha followed up with Tom for any additional comments, here’s what Tom Said, “Just like Rap anti LGD this will increase sales, not hurt them. People will ask, “why ban a product that has sold next to natural with no problems? Hhmmmm wonder what the issue is??? The FTC probably won’t respond to me but it does go into the record.”

What are your thoughts about AGTA’s banning of Lab Grown Diamonds?

Do you agree with Tom?