WENATCHEE — A high-tech luxury business trying to get established in a new Wenatchee location hasn’t been specific enough about its product.
That’s according to the Federal Trade Commission, which last week said Diamond Foundry, based in San Francisco, used intentionally misleading language to advertise its laboratory-grown diamonds. The FTC says that could lead consumers to believe they’re buying natural gemstones. The agency’s letter to Diamond Foundry says it must “clearly and conspicuously” disclose that its diamonds are artificially constructed.
Diamond Foundry uses real diamonds as a template for its fabricated diamonds, which are created under intense heat and pressure in laboratory conditions. Two years ago, Diamond Foundry signed a lease on warehouse space in Wenatchee where it planned to establish its “megacarat foundry.”
The facility was supposed to open last summer, but it hasn’t yet contracted with the Chelan County PUD for the massive amounts of electricity its foundry process requires. As of January, Diamond Foundry was still advertising to hire technicians.
The FTC letter doesn’t mean the company, or the seven others who received one, has broken the law. But it’s a warning to keep the playing field level when competing with vendors of traditionally mined diamonds.
Jefferson Robbins: 679-7013