May 31, 2026

Written by Jewellery World

Posted in

• Diamonds,
• Lab Grown,
• News
• World News

The debate surrounding laboratory-grown diamonds has entered a new phase, with regulators now stepping directly into the conversation around terminology, transparency, and consumer understanding.

In May 2026, the UK’s Advertising Standards Authority (ASA) ruled against jewellery retailers Novita Diamonds and Linjer after finding their advertisements used the word “diamond” without clearly disclosing the stones were laboratory-grown. The ASA stated that qualifiers such as “lab-grown”, “laboratory-created”, or “synthetic” must be clear and prominent in advertising.

The complaints were lodged by the Natural Diamond Council (NDC) and supported by the London Diamond Bourse, both of which argued that consumers could mistakenly assume the products were natural diamonds.

This follows earlier ASA rulings involving brands including Skydiamond, where the regulator found phrases such as “diamonds made entirely from the sky” and “real diamonds” were misleading without clear disclosure that the stones were synthetic.

Importantly, the ASA is not banning laboratory-grown diamonds. The rulings focus on disclosure and consumer clarity. Regulators increasingly view diamond origin as “material information” consumers should understand before purchase.

The FTC and Global Terminology Standards

The UK rulings closely align with guidance from the US Federal Trade Commission (FTC), which has repeatedly warned that laboratory-created diamonds should not be marketed simply as “diamonds” without qualification. The FTC advises retailers to use terms such as “laboratory-grown”, “laboratory-created”, or “synthetic” clearly and prominently near the word “diamond”.

The FTC has also warned businesses about sustainability and environmental marketing claims, stating that broad claims such as “eco-friendly” or “green” must be substantiated with evidence.

What It Means for Australia

While Australia has not yet seen an equivalent public ruling, the global direction is difficult to ignore, particularly as one of the companies involved in the UK case, Novita Diamonds, is Australian founded.

Australian Consumer Law already prohibits misleading or deceptive conduct, meaning the industry could eventually face stronger scrutiny around:

-advertising terminology

-sustainability claims

-online product descriptions

-disclosure obligations at point of sale

The conversation is also influencing consumer perception. As laboratory-grown diamonds become more mainstream, consumers are increasingly questioning differences in rarity, resale value, and long-term price stability.

Laboratory-grown diamond prices have declined significantly over recent years, fuelling broader industry discussions around:

-resale expectations

-trade-in value

-long-term pricing

-perceived investment value

At the same time, retailers are now navigating a market where natural and laboratory-grown diamonds sit side-by-side in showcases. This places greater importance on staff education, ensuring sales teams can clearly explain:

-origin
-pricing differences
-certification
-value retention
-terminology

For many jewellers, terminology is no longer simply a marketing choice. It is increasingly becoming a compliance issue.

The latest UK rulings suggest regulators are no longer treating disclosure as optional fine print. Instead, they are positioning transparency as fundamental consumer information.