DavidBouffard,WDCBoardMemberVicePresident,CorporateAffairs,SignetJewelers

KPSpecialForumonDiamondTerminology

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ErnestJonesSales:~$292millionStores:189

KayJewelers#1jewelry storeintheU.S.Sales:~$2.42billionStores:1,214in50states

JaredTheGalleriaOfJewelry#1U.S.off-mallspecialtyjewelerSales:~$1.14billionStores:256in41states

RevenueinFY19:Approximately$6.2billion

ZalesJewelersAleadingbrandinjewelry retailingintheU.S.Sales:~$1.26billionStores:658in50states

PeoplesJewellers#1inCanadaSales:~$208millionStores:123in9provinces

H.SamuelSales:~$284millionStores:288

AboutSignet:TheWorld’sLargestRetailerofDiamondJewelry

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Whatarelab-growndiamonds?

What They Are

• Same chemical, physical and optical properties as a natural diamond

• No visible difference in appearance to the naked eye when cut and polished

• Produced through Chemical Vapor Deposition (CVD) or High Pressure/High Temperature (HPHT)

• LGDs are a substitute for a natural diamond

What They Are Not

• A simulant (e.g., cubic zirconia, moissanite, crystals)

• Simulants are a complement to natural diamonds; they try to imitate the look, but do

not have the same chemical, physical or optical properties of a diamond.

Lab-growndiamond

Naturaldiamond

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FTCin1996vs.2018:LGDs

1996 2018LGDDisclosure • “Lab-grown”

• “Lab-created”• “[manufacturername]-created”

• “laboratory-grown”• “laboratory-created”• “[manufacturername]-created”• “synthetic”nolongerrecommended• “cultured”mustbefollowedbyoneofthefirst

threeitemslistedabove

Terminology(diamonds)

• Unfairordeceptivetousetheword‘‘real,’’‘‘genuine,’’‘‘natural,’’‘‘precious,’’toanyartificiallyproducedproduct

• Unfairordeceptivetousetheword‘‘real,’’‘‘genuine,’’‘‘natural,’’‘‘precious,’’toanyartificiallyproducedproduct

Environmentalclaims

• n/a • Marketersneedtospellouttheproduct’sspecificenvironmentalbenefits

• “Recyclable”vs.“Eco-Friendly”

Simulants • n/a • Avoiddescribingsimulantsinawaythatmayfalselyimplythattheyhavethesamechemical,physicaloropticalpropertiesofmineddiamonds

• We’reworkingwiththeDiamondProducers’Associationtoprotectterminologysuchas“precious”,“real”,and“genuine”intheU.S.

• The2018FTCJewelryGuidesbuildonguidanceissuedin1996.

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ExamplesofLGDadvertising

ALIGNEDWITHFTCGUIDANCE NOTALIGNEDWITHFTC

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Q&ASession

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ThankYou