According to sources, "a class action lawsuit has been filed against Knoxville-based Jewelry Television Network for false advertising, misrepresentation and unlawful, unfair and deceptive trade practices."
The $5+ million class action lawsuit, filed in U.S. District Court in the Southern District of California by attorney Mark Tamblyn of Sacramento CA and attorney Greg Coleman of the Coleman & Edwards law firm in Knoxville, claims that "Jewelry Television sold gemstones it described as 'green or red andesine labradorite' which were actually colorless or yellow common feldspar that had been chemically treated to look red or green."
Plaintiffs allege that Jewelry TV misrepresented the gemstones as a "highly coveted, extremely rare, all-natural, expensive gem that looks like an Oregon Sunstone" and sold them "from Jan. 2003 until the present for up to $149 per carat." According to the complaint, JTV obtained the stones for "pennies per carat" from suppliers in China, Mexico and Mongolia. The stones were allegedly given a "facelift through artificial treatment" and "sold at a great mark-up" to customers as being "rare and all-natural."
Here's a copy of the lawsuit.
Correction: E.W. Scripps, which owns the Knoxville News Sentinel, did not own Jewelry TV as stated in the original post. Jewelry TV purchased the Shop at Home Network from E.W. Scripps for $17 million in 2006.
UPDATE: The Knoxville News Sentinel picks up on the story this morning.
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