Following a six-day trial, a federal jury has dismissed Blue Nile Inc.'s $60.1 million claim that the Yehuda Diamond Company engaged in false or misleading advertising by comparing the prices of its clarity-enhanced diamonds to Blue Nile’s untreated diamonds. A clarity-enhanced diamond has a material inserted into the gem to make its flaws less visible.
A spokesman for Blue Nile, No. 56 in the Internet Retailer Top 500 Guide, says the web-only retailer is disappointed with the decision since many consumers don’t understand the difference between clarity-enhanced diamonds and more expensive untreated diamonds. “We are puzzled and disappointed by the jury’s decision,” he says. “We feel that it does a disservice to consumers. Our goal is to make sure consumers are educated and empowered and pay a fair price after they understand what they are purchasing. We continue to believe that the decision does not help consumers.”
Yehuda Diamond Company’s web site acknowledges that its diamonds are clarity-enhanced, as well as offering information about the process and why they use it. That’s why Dror Yehuda, president of Yehuda Diamond Company, says Blue Nile’s claim was ridiculous. “As long as you say what you’re comparing, you’re allowed to compare anything to anything,” he says.
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