Weed's lawsuit states that during the claim period, she spent $4,000 buying andesine-labradorite from JTV that was "fraudulently advertised and misrepresented" as an all-natural, extremely rare stone that looked like Oregon sunstone and had seen "incredible appreciation" in value in the recent past.

The lawsuit claims consumers were actually purchasing a low-cost yellow or colorless labradorite that had been heat-treated to look like Oregon sunstone, which by contrast is an exceptionally rare feldspar with vivid reddish-orange colors that, according to the lawsuit, sells for at least $100 per carat.

According to the lawsuit, JTV bought the feldspar for "pennies per carat and sold it for extraordinary profits."

The suit alleges that JTV violated Federal Trade Commission (FTC) regulations, which dictate that it is "deceptive and unfair" to fail to disclose treatment of a gemstone when it has significant effect on the stone's value.

The suit also cites the FTC guidelines that state it is deceptive to call a gemstone "natural," when it is not.

Gardner says that when the FTC finds businesses have violated the guidelines, the federal agency has the power to levy fines and can also force a business to change its advertising or run corrective advertising.

In its defense, JTV issued a statement saying it did not know the stones were treated.

"Much of the information in the lawsuit is totally incorrect and we are satisfied that Jewelry Television acted completely responsibly and the true facts will vindicate us," the statement reads.

In an interview cited in court papers, JTV co-founder Jerry Sisk said the company was under the impression that the gemstone was natural.

"We all sent samples to the major labs," he said. "And they didn't know the mechanism. They couldn't determine the mechanism. So basically they couldn't say this was treated. So it was assumed the material was natural."

American Gem Trade Association (AGTA) CEO Doug Hucker says no test currently exists that can determine if andesine-labradorite has been treated in any way.

According to court papers, JTV learned that the stones were treated only after visiting the andesine mine.

After making this discovery, JTV reported it to customers in early 2008 and offered a "liberal return policy" to purchasers of the stones.

As of press time, both lawsuits were still open cases.

Whatever the outcome, Gardner says cases like these undermine consumer confidence in retail jewelers.

"It's not good for the industry," she says.

And while JTV might ultimately be cleared of charges in the case, Gardner says it is unlikely that consumers will find that out.

"When [lawsuits] get settled, they often don't make the news," she says.

Hucker issues a caveat emptor of sorts when advising AGTA members on the purchase of andesine-labradorite. Purchasers need to know exactly what they are buying and should use their best judgment, he says.

Gardner says colored gemstones prompt more JVC inquiries than diamonds.

--E-mail: michelle.graff@nationaljeweler.com

Editor's note: This story first appeared in the July 2008 print edition of National Jeweler.