We know that you work hard to make sure your advertisements are fully in compliance with the law.  Your web site offers your customers the convenience of shopping online. But don't forget that all laws, rules, and regulations that apply to catalogue sales and brick and mortar stores also apply to internet transactions, and there are even some special regulations for electronic commerce. 

JVC has launched a new program to review the web sites of all prospective members prior to acceptance into the JVC. Many times, the same common mistakes were found. Take the short quiz below and find out how your web site stacks up. We decided to take this program one step further and offer it to all our members.

Beginning in 2005, you will receive as part of your JVC membership a review of your web site. We will identify advertising and compliance problems and explain the proper application of the rules to your site. Upon completion of the review,you will receive a written report outlining the problems, if any, that we found on your site. Naturally, you are welcome to contact us if you are not entirely sure whether you are correcting the problems in the right way! Should you require more extensive guidance, you can schedule an appointment for a one-on-one consultation for a small fee.


Q.1 You are a retail jeweler and are designing a website. In order to point out to consumers how reasonably priced your jewelry is, you decide to use this phrase: "We sell at wholesale prices!" Can you do that?
a) Of course! We are selling at a much lower markup than others.
b) Not sure. But, who cares really? Everybody uses this phrase anyway.
c) I don't think so. After all, I am selling in the retail market at above the price I paid.

Q.2 Now you decide to offer some pearl jewelry for sale on your website, using the following description: "Charming pink freshwater pearl bracelet." Is this in compliance with the FTC Guides for the Jewelry Industry?
a) Why not?
b) The phrase is fine because it says "freshwater."
c) The term "cultured" needs to be added before "pearl."

Q.3 On your site, you offer a ring with a "3/4 carat center diamond" and "1/2 ct diamond stud earrings." Are you still in compliance with the FTC Guides?
a) That goes without saying! Everyone in the industry advertises just like that.
b) Well, I think I heard somewhere that it should also say "diamond weights are approximate" if you use fractions.
c) No. I attended a JVC Retail Seminar at one of the trade shows and they said that I need to add a chart with the weight tolerance ranges in decimals in close proximity to the fractions. It also has to say that diamond weights are not exact.

Q.4 Your online business offers colored stone jewelry. Some beautiful emerald rings were created in a laboratory, but you have been assured that they have all the properties of the real thing, only are better and clearer. You advertise them on your web site like this: "Smashing faux emerald ring." Do you think you described the emerald properly?
a) What's wrong with that? After all, it's true!
b) Hmm. Probably it's fine, because it says "faux," and that means that it isn't a natural stone, like "faux fur" means that it isn't real fur.
c) This is not good enough, I think. I remember that it has to say "laboratory-created" when you want to describe such a synthetic stone.
d) The word "Faux", "Imitation" are used to describe a "simulate".  The question describes a "simulated", "laboratory created" emerald.

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NOW, SEE HOW WELL YOU DID!

Question 1: Answer C) Selling to consumers is a retail transaction at a price which results in a profit to the seller. "Wholesale" refers only to transactions to somebody who then resells the merchandise. For more on this subject refer to the following JVC Publications: Legal Reference - Pages 31,38 Legal Compliance in Plain English - Page 35

Question 2: Answer C) The Guides clearly state that you have to use the word "cultured," no matter if freshwater, Tahitian, South Sea, etc. immediately preceding the word "pearl," unless the pearl is in fact a natural pearl. For more on this subject refer to the following JVC Publications: Legal Reference - Pages 17-21 Legal Compliance in Plain English - Pages 19-21

Question 3: Answer C) The Guides have an entire section about misrepresentation of weight and "total weight." If you use fractions to represent diamond weight, a chart that gives a reasonable and accurate range for each fraction needs to be added, as well as a statement that diamond weights are not exact. For more on this subject refer to the following JVC Publications: Legal Reference - Pages 16-17 Legal Compliance in Plain English - Page 17

Question 4: Answer D) The FTC Guides state that "faux" is not an adequate description of a laboratory-grown stone. The nature of the product needs to be disclosed clearly by adding terminology such as "synthetic," "laboratory-created," etc. For more on this subject refer to the following JVC Publications: Legal Reference - Page 20 Legal Compliance in Plain English - Page 22