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Class Action Settlements: Andesine

Andesine-Labradorite is part of the feldspar mineral group, the most common mineral found in the earth’s crust. The gem variety of andesine has shades of yellow. In 2002, a gem that was labeled as andesine, with various colors such as intense red, green, reddish orange and other shades, was introduced into the gem market and charged at high prices.

Since then, it has been revealed that the red, orange and green gems were actually yellow labradorite from Mexico or Mongolia, which had been treated by heat and copper diffusion to enhance their color.

In May 2008, a $5 million class action lawsuit was filed against Jewelry Television (JTV), based in Knoxville, Tenn., which had sold andesine gemstones claiming that they were natural, rare and expensive when they were actually heat- or chemically treated. JTV is one of the leaders in shop-at-home gem and jewelry sales. It is also one of the largest jewelry retailers in the world. A second class action filed against JTV soon thereafter also accused JTV of false advertising in regard to the gems.

The andesine stones were sold on JTV for $149 per carat and did offer a return period, but the suit alleged that this fact was not advertised and was not administered well.

JTV was actually instrumental in finding andesine mines and providing gem samples for analysis. In 2007, JTV disclosed that gems found in a Mongolian mine had been heat-treated to produce the reddish orange color, but that this enhancement treatment was an accepted practice in the gem industry. The lawsuits claimed, however, that prior to 2007, JTV failed to note in any of its laboratory pieces on andesine that the gems it was selling had been heat-enhanced.

The class action suits were settled on January 14, 2009. Eligible class members who had purchased the gems from JTV between May 31, 2004, and July 31, 2008, were given the opportunity to submit claims for reimbursement and JTV store credits. To satisfy the anticipated claims, JTV set aside $2 million. JTV also promised to educate its salespeople to adequately and prominently disclose the exact nature of andesine’s color.