RapNet’s EGL decision ignites flurry of reactions

New York--It’s an issue that has been a topic of discussion in the industry for years but seems to have reached a boiling-over point, heated by the string of lawsuits filed against a Tennessee jeweler over EGL International reports and, more recently, a decision by Rapaport. 

RapNet, the diamond trading network operated by Rapaport Group, announced last week that effective Oct. 1, diamonds with grading reports from all European Gemological Laboratories, including EGL USA, will no longer be listed on RapNet. 

The move resulted in reactions from a couple of labs with the initials EGL. 

While a number of labs share the acronym EGL, they actually are not all the same, a fact which the Rapaport Group acknowledged in making its decision, stating, “While some EGL grading reports are more consistent with GIA grading standards than others, there is, in our opinion, confusion and inconsistency among the various EGL grading reports; RapNet has therefore decided not to list any EGL grading reports on RapNet.”

EGL International, the lab most commonly accused of over-grading, is headquartered in Israel. Managing Partner and CEO Guy D. Benhamou said in a statement issued Thursday that there is no international “standard” for diamond grading and that all grading is subjective, a statement the lab has made previously. 

“In general, gemological laboratories that issue diamond grading reports will consistently state that the results of diamond grading are, to a certain extent subjective,” Benhamou said. 

The statement did not directly address trade allegations of over-grading but went on to state that “EGL International’s laboratory staff is composed of graduate gemologists with international recognition. They work with state-of-the-art technology, enabling them to detect and disclose synthetic (laboratory-grown) diamonds, as well as a variety of advanced treatments to enhance color or clarity (e.g., HPHT).” 

EGL USA has its headquarters in New York, a lab in Los Angeles and affiliate labs in Toronto and Vancouver, British Columbia. 

In a statement issued Tuesday, EGL USA pointed out that it is “in no way affiliated” with any EGL-named laboratories outside of North America, and in 2003 sued the EGL labs outside of North America for trademark infringement and false advertising. That case is still pending. 

EGL USA said it was not accurate of Rapaport to associate it with allegations of over-grading and misrepresentation of diamond quality. 

“Simply put, the delisting of EGL USA penalizes us for our name