Competition Bureau Clarifies Rules for the Marketing of Canadian Diamonds

Ottawa, November 13, 2001 — The Competition Bureau announced new rules today regarding false or misleading representations relating to the marketing of Canadian diamonds. The new rules are outlined in the Bureau's Enforcement Policy on the Marketing of Canadian Diamonds and in the Bureau's updated Guide to "Made in Canada" Claims.

In its analysis of the emerging Canadian diamond industry in Canada over the last year, the Bureau noted confusion and uncertainty over what could be advertised as a Canadian diamond. Specifically, industry participants asked the Bureau whether the substantial transformation test stated in the Bureau's Guide to "Made in Canada" Claims meant that a diamond had to be mined, cut and polished in Canada to be advertised as a Canadian diamond. The Bureau's updated Guide clarifies the situation, establishing as an underlying principle that goods which are mined or harvested in Canada will be considered Canadian.

The Bureau's new Enforcement Policy on the Marketing of Canadian Diamonds reflects the clarifications outlined in the updated Guide to "Made in Canada" Claims, stating that a diamond can only be advertised as a "Canadian diamond" when it originates from Canadian soil. Foreign diamonds, cut and polished in Canada, do not qualify as "Canadian diamond".

"These clarifications will benefit consumers and will help open up the market by allowing all Canadian mined diamonds to be advertised as Canadian diamonds," said Raymond Pierce, Deputy Commissioner of Competition for the Bureau's Fair Business Practices Branch. "Our approach on this issue is consistent with the Bureau's objective, under the Competition Act, that all advertising claims be fair and accurate."

For assistance or to obtain a copy of the Enforcement Policy on the Marketing of Canadian Diamonds , or the Guide to Claims Made in Canada please call the Bureau's Information Centre Toll-Free at 1-800-348-5358 or visit our Web site at: www.competitionbureau.gc.ca.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.