[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR23.4]
[Page 144-146]
TITLE 16--COMMERCIAL PRACTICES
CHAPTER I--FEDERAL TRADE COMMISSION
PART 23_GUIDES FOR THE JEWELRY, PRECIOUS METALS, AND PEWTER INDUSTRIES--Table
Sec. 23.4 Misrepresentation as to gold content.
(a) It is unfair or deceptive to misrepresent the presence of gold
or gold alloy in an industry product, or the quantity or karat fineness
of gold or gold alloy contained in the product, or the karat fineness,
thickness, weight ratio, or manner of application of any gold or gold
alloy plating, covering, or coating on any surface of an industry
product or part thereof.
(b) The following are examples of markings or descriptions that may
be misleading: \2\
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\2\ See Sec. 23.4(c) for examples of acceptable markings and
descriptions.
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(1) Use of the word ``Gold'' or any abbreviation, without
qualification, to describe all or part of an industry product, which is
not composed throughout of fine (24 karat) gold.
(2) Use of the word ``Gold'' or any abbreviation to describe all or
part of an industry product composed throughout of an alloy of gold,
unless a correct designation of the karat fineness of the alloy
immediately precedes the word ``Gold'' or its abbreviation, and such
fineness designation is of at least equal conspicuousness.
(3) Use of the word ``Gold'' or any abbreviation to describe all or
part of an industry product that is not composed throughout of gold or a
gold alloy, but is surface-plated or coated with gold alloy, unless the
word ``Gold'' or its abbreviation is adequately qualified to indicate
that the product or part is only surface-plated.
(4) Use of the term ``Gold Plate,'' ``Gold Plated,'' or any
abbreviation to describe all or part of an industry product unless such
product or part contains a surface-plating of gold alloy, applied by any
process, which is of such thickness and extent of surface coverage that
reasonable durability is assured.
(5) Use of the terms ``Gold Filled,'' ``Rolled Gold Plate,''
``Rolled Gold Plated,'' ``Gold Overlay,'' or any abbreviation to
describe all or part of an industry product unless such product or part
contains a surface-plating of gold alloy applied by a mechanical process
and of such thickness and extent of surface coverage that reasonable
durability is assured, and unless the term is immediately preceded by a
correct designation of the karat fineness of the alloy that is of at
least equal conspicuousness as the term used.
(6) Use of the terms ``Gold Plate,'' ``Gold Plated,'' ``Gold
Filled,'' ``Rolled
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Gold Plate,'' ``Rolled Gold Plated,'' ``Gold Overlay,'' or any
abbreviation to describe a product in which the layer of gold plating
has been covered with a base metal (such as nickel), which is covered
with a thin wash of gold, unless there is a disclosure that the primary
gold coating is covered with a base metal, which is gold washed.
(7) Use of the term ``Gold Electroplate,'' ``Gold Electroplated,''
or any abbreviation to describe all or part of an industry product
unless such product or part is electroplated with gold or a gold alloy
and such electroplating is of such karat fineness, thickness, and extent
of surface coverage that reasonable durability is assured.
(8) Use of any name, terminology, or other term to misrepresent that
an industry product is equal or superior to, or different than, a known
and established type of industry product with reference to its gold
content or method of manufacture.
(9) Use of the word ``Gold'' or any abbreviation, or of a quality
mark implying gold content (e.g., 9 karat), to describe all or part of
an industry product that is composed throughout of an alloy of gold of
less than 10 karat fineness.
Note to paragraph (b) Sec. 23.4: The provisions regarding the use
of the word ``Gold,'' or any abbreviation, as described above, are
applicable to ``Duragold,'' ``Diragold,'' ``Noblegold,'' ``Goldine,''
``Layered Gold,'' or any words or terms of similar meaning.
(c) The following are examples of markings and descriptions that are
consistent with the principles described above:
(1) An industry product or part thereof, composed throughout of an
alloy of gold of not less than 10 karat fineness, may be marked and
described as ``Gold'' when such word ``Gold,'' wherever appearing, is
immediately preceded by a correct designation of the karat fineness of
the alloy, and such karat designation is of equal conspicuousness as the
word ``Gold'' (for example, ``14 Karat Gold,'' ``14 K. Gold,'' or ``14
Kt. Gold''). Such product may also be marked and described by a
designation of the karat fineness of the gold alloy unaccompanied by the
word ``Gold'' (for example, ``14 Karat,'' ``14 Kt.,'' or ``14 K.'').
Note to paragraph (c)(1): Use of the term ``Gold'' or any
abbreviation to describe all or part of a product that is composed
throughout of gold alloy, but contains a hollow center or interior, may
mislead consumers, unless the fact that the product contains a hollow
center is disclosed in immediate proximity to the term ``Gold'' or its
abbreviation (for example, ``14 Karat Gold-Hollow Center,'' or ``14 K.
Gold Tubing,'' when of a gold alloy tubing of such karat fineness). Such
products should not be marked or described as ``solid'' or as being
solidly of gold or of a gold alloy. For example, when the composition of
such a product is 14 karat gold alloy, it should not be described or
marked as either ``14 Kt. Solid Gold'' or as ``Solid 14 Kt. Gold.''
(2) An industry product or part thereof, on which there has been
affixed on all significant surfaces, by any process, a coating,
electroplating, or deposition by any means, of gold or gold alloy of not
less than 10 karat fineness that is of substantial thickness, \3\ and
the minimum thickness throughout of which is equivalent to one-half
micron (or approximately 20 millionths of an inch) of fine gold, \4\ may
be marked or described as ``Gold Plate'' or ``Gold Plated,'' or
abbreviated, as, for example, G.P. The exact thickness of the plate may
be marked on the item, if it is immediately followed by a designation of
the karat fineness of the plating which is of equal conspicuousness as
the term used (as, for example, ``2 microns 12 K. gold plate'' or
``2[micro] 12 K. G.P.'' for an item plated with 2 microns of 12 karat
gold.)
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\3\ The term substantial thickness means that all areas of the
plating are of such thickness as to assure a durable coverage of the
base metal to which it has been affixed. Since industry products include
items having surfaces and parts of surfaces that are subject to
different degrees of wear, the thickness of plating for all items or for
different areas of the surface of individual items does not necessarily
have to be uniform.
\4\ A product containing 1 micron (otherwise known as 1[micro]) of
12 karat gold is equivalent to one-half micron of 24 karat gold.
Note to paragraph (c)(2): If an industry product has a thicker
coating or electroplating of gold or gold alloy on some areas than
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others, the minimum thickness of the plate should be marked.
(3) An industry product or part thereof on which there has been
affixed on all significant surfaces by soldering,
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brazing, welding, or other mechanical means, a plating of gold alloy of
not less than 10 karat fineness and of substantial thickness \5\ may be
marked or described as ``Gold Filled,'' ``Gold Overlay,'' ``Rolled Gold
Plate,'' or an adequate abbreviation, when such plating constitutes at
least \1/20\th of the weight of the metal in the entire article and when
the term is immediately preceded by a designation of the karat fineness
of the plating which is of equal conspicuousness as the term used (for
example, ``14 Karat Gold Filled,'' ``14 Kt. Gold Filled,'' ``14 Kt.
G.F.,'' ``14 Kt. Gold Overlay,'' or ``14K. R.G.P.''). When conforming to
all such requirements except the specified minimum of \1/20\th of the
weight of the metal in the entire article, the terms ``Gold Overlay''
and ``Rolled Gold Plate'' may be used when the karat fineness
designation is immediately preceded by a fraction accurately disclosing
the portion of the weight of the metal in the entire article accounted
for by the plating, and when such fraction is of equal conspicuousness
as the term used (for example, ``\1/40\th 12 Kt. Rolled Gold Plate'' or
``\1/40\ 12 Kt. R.G.P.'').
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\5\ See footnote 3.
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(4) An industry product or part thereof, on which there has been
affixed on all significant surfaces by an electrolytic process, an
electroplating of gold, or of a gold alloy of not less than 10 karat
fineness, which has a minimum thickness throughout equivalent to .175
microns (approximately \7\/1,000,000ths of an inch) of fine
gold, may be marked or described as ``Gold Electroplate'' or ``Gold
Electroplated,'' or abbreviated, as, for example, ``G.E.P.'' When the
electroplating meets the minimum fineness but not the minimum thickness
specified above, the marking or description may be ``Gold Flashed'' or
``Gold Washed.'' When the electroplating is of the minimum fineness
specified above and of a minimum thickness throughout equivalent to two
and one half (2\1/2\) microns (or approximately \100\/
1,000,000ths of an inch) of fine gold, the marking or
description may be ``Heavy Gold Electroplate'' or ``Heavy Gold
Electroplated.'' When electroplatings qualify for the term ``Gold
Electroplate'' (or ``Gold Electroplated''), or the term ``Heavy Gold
Electroplate'' (or ``Heavy Gold Electroplated''), and have been applied
by use of a particular kind of electrolytic process, the marking may be
accompanied by identification of the process used, as for example,
``Gold Electroplated (X Process)'' or ``Heavy Gold Electroplated (Y
Process).''
(d) The provisions of this section relating to markings and
descriptions of industry products and parts thereof are subject to the
applicable tolerances of the National Stamping Act or any amendment
thereof. \6\
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\6\ Under the National Stamping Act, articles or parts made of gold
or of gold alloy that contain no solder have a permissible tolerance of
three parts per thousand. If the part tested contains solder, the
permissible tolerance is seven parts per thousand. For full text, see 15
U.S.C. 295, et seq.
Note 4 to paragraph (d): Exemptions recognized in the assay of karat
gold industry products and in the assay of gold filled, gold overlay,
and rolled gold plate industry products, and not to be considered in any
assay for quality, are listed in the appendix.