Lawsuits Filed Between Two Web Companies on Treatment Disclosure

E-Commerce diamond retailer Yehuda Diamonds has been fighting with the e-commerce diamond retailer Blue Nile.

The latest issue is proper disclosure of treatments on gemstones.

The real issue here is how clearly disclosure is made.  You can often judge the ‘quality’ of a company by how little fine print they have.  These days you need to be careful with where you spend your money.  Most companies are deceptive at best with disclosing how they work and what they sell.

This is an unfortunate state of how most business is done these days.  In the banking and finance industry, there are endless pages of fine print.  If you buy a car, or have one repaired, there are endless pages of fine print.  Even if you buy an item ‘As Seen On TV’ there seems to be so many hidden details in the fine print.

Yehuda Diamond Corp sells diamonds that have been altered in some way in order to improve the color and clarity of the stone.

This is the main selling point of what they do, they make it very clear that they have altered the diamonds they sell.
The selling point is that they are far less expensive and still look the same as high quality unaltered diamonds.

They are causing legal problems for Blue Nile in how it markets the colored stones they sell.

It doesn’t make much sense why Yehuda would want Blue Nile to disclose more clearly how the sapphires, rubies and emeralds are treated that they sell, since Yehuda doesn’t sell those types of stones.

Someone called me and said I should start a lawsuit against many other gemstone retailers that don’t properly disclose the treatments to the gemstones they offer for sale.  Deceptive or hidden, if you are not clearly stating what you are offering for sale and what has been done to it before it is offered for sale, you are just not doing fair business.

I feel and hope that the general public is smart enough to know the difference between tricky marketing and/or hidden fine print.  I can’t be an extension of the Federal Government FTC. Although I wish they could do a better job of enforcing proper legal disclosure.   For now I guess I’ll just have to send a thank you note to Yehuda.

Learn more about what other dealers are selling, and check out our education section where we disclose what others don’t.


What Blue Nile might be selling (hidden in a gold setting with small diamonds)?


“Natural Rutile in a Ceylon Sapphire.  Natural Beauty, Fully Disclosed”

See the full story on this lawsuit

Michael Arnstein