The Australian Financial Conduct Authority (AFCA) is examining whether the retail industry needs to change the way it sells diamonds to ensure the safety of consumers and to ensure there are adequate supply chains.
In its report, released today, the ACCA said it was looking into whether retail diamond sales have to become more transparent and how to protect consumers.
The ACCA is concerned that the industry needs transparency and controls on the use of diamonds.
According to the ACCC, in Australia, diamonds account for a whopping 80 per cent of all diamonds sold.
“Diamonds are a highly valuable asset in the diamond industry, and we need to ensure that diamond sales are conducted in a transparent and responsible manner, and consumers have confidence in the integrity of their diamonds,” ACCC Chairman Michael Howard said.
While there have been concerns about how diamonds are being marketed to consumers, there are also concerns about the impact of the industry on the environment.
More than 70 per cent and a quarter of all the diamonds produced in Australia are sourced from mines in China, Indonesia and Zambia.
As the diamond trade grows in Australia’s second-largest economy, the number of diamond mines has been growing rapidly, and demand is growing too.
Gold is an important part of the diamond supply chain, and is used to make jewellery, necklaces and earrings.
Although most of the diamonds are sold in Australia under the Diamond Council’s Diamonds to Gold programme, the Australian Diamond Council (ADC) has said it will not sell its own product unless there is sufficient transparency from the industry.
It is also investigating whether the industry should introduce greater transparency on the nature of the mining process, and how diamonds were sourced.
For more information on the ACCAC’s diamond inquiry, visit their website.
Topics:consumer-finance,consumer-protection,consumerism,industry,government-and-politics,finance-and,financial-markets,gold,corporate,industries,government—business-economics-and_insurance,consumer,industrey,government,australiaFirst posted April 13, 2020 17:51:10Contact Victoria MeerminMore stories from Victoria