Code of Conduct

RapNet Trading Rules & Code of Conduct

Updated August 30, 2015

 

 

Members should carefully review our RapNet Trading Rules & Code of Conduct and RapNet Member License Agreement to ensure they are in full compliance with our agreement, policies and rules, as violations can result in suspension or termination of membership.

 

 

1  Introduction

1.1  RapNet® – The Rapaport Diamond Trading Network welcomes legitimate members of the international diamond and jewelry trade. Firms or individuals seeking membership are invited to complete our membership application.

1.2  RapNet membership is subject to approval. RapNet reserves the right to restrict, deny, suspend, or terminate membership at any time for any reason. RapNet may post the name of members in our directories and post notification with or without explanation when memberships are suspended or terminated.

1.3  All RapNet Members must accept, agree and comply with the RapNet Trading Rules & Code of Conduct as well as the RapNet Member License Agreement. Members are encouraged to contact RapNet with questions, comments, and suggestions via email support@rapnet.com.

1.4  The RapNet Trading Rules & Code of Conduct and RapNet Member License Agreement are subject to change and may be updated. Notice of updates will be posted on the RapNet website. Such updates are binding on RapNet Members.

1.5  RapNet is fully owned and operated by the Rapaport Group.

 

2 Legal and Ethical Business Practices

2.1  RapNet is a value based organization which strives to provide an honest, fair, secure, transparent, efficient and competitive market for the trading of diamonds, gems and jewelry. RapNet members should accept and support these values.

2.2  RapNet Members must fully comply with all applicable local, state, national and international laws and regulations. RapNet is a U.S. entity, it is subject to U.S. law and operates in compliance with all applicable U.S. Patriot Act, OFAC and other regulations. Such regulations restrict the trading of diamonds sourced from U.S. sanctioned entities in all markets, including non-U.S. markets.

2.3  Members may not list, buy or sell products on RapNet which they know or have reason to know are sourced from entities involved in human rights abuses, terrorist financing, money laundering or are subject to U.S. sanctions. Such restrictions apply whether or not it is legally permissible to trade these products or if diamonds originate from Kimberley Process certified sources. In addition to the aforementioned general rule, based on legal and moral considerations, RapNet specifically forbids the trading of any diamonds sourced from Marange, Zimbabwe on the network

2.4  Members may not sell U.S. buyers diamonds that they know or should have reason to know are illegal for trade in the U.S. even if such sale does not place on or through RapNet.

2.5  RapNet members are held to a high ethical standard which may transcend legal obligations.Members must conduct themselves with integrity and at all times comply with the highest legal and ethical standards. RapNet may from time to time require members to comply with specific trade restrictions based on ethical considerations. Such trade restrictions will be posted on our website.

2.6  Members may be held accountable for all actions taken that violate RapNet Trading Rules & Code of Conduct even if such actions take place outside the RapNet network.

2.7  Enforcement of RapNet Trading Rules & Code of Conduct is at the sole discretion of RapNet management.

 

3  RapNet Access and Confidentiality

3.1  RapNet Members may not disclose or share their password with any third party. Password use is strictly limited to specific individuals. Members may request additional passwords from RapNet customer service (service@diamonds.net) in the event multiple users require access to RapNet. Additional charges may apply.

3.2  RapNet Members may not disclose proprietary RapNet or Rapaport information to third parties The Rapaport Price List and RapNet Price Lists are examples of such proprietary information.

3.3  RapNet Members may not download and/or store RapNet diamond listings, buy requests, or any other RapNet data without the permission of RapNet and the company posting the listings.

3.4  RapNet Members may not share names or contact information of other RapNet Members with third parties. They may not send email broadcasts to other members.

3.5  RapNet Members may use automatic electronic data transfer programs through our Application Program Interface (API) as documented at technet.rapaport.com website. Members may not use automated computer programs to access RapNet.com under any circumstances. Members may perform automatic downloads and data exchange via technet.rapaport.com if they have been given permission to do so.

3.6  RapNet Members may not access, use, store, share or distribute Rapaport, RapNet or RapNet Member information without the permission of RapNet and/or Rapaport.

 

4  Trading

4.1  RapNet Members must trade honestly, in good faith and do business in a way that ensures RapNet is a safe, secure and trusted trading environment. RapNet members must provide full disclosure to buyers in the event that the products being offered for sale are subject to legal restrictions in the buyer’s home country. RapNet allows the listing of natural diamonds only. Simulants and lab grown diamonds are not permitted on RapNet listings.

4.2  Sellers must fully disclose all information about the products they sell if such information is likely to affect the value of the product upon resale. This includes but is not limited to treated, synthetic, enhanced or simulated products. Misrepresentation is not allowed and full written disclosure is required.

4.3  All diamond sales are assumed to be for natural untreated diamonds legal for sale in the United States unless otherwise indicated on the invoice. In the event of non-disclosure and upon buyer’s request a full cash refund must be made to the buyer within 2 business days.

4.4  All agreements and transactions between RapNet Members are binding. This includes oral, telephone, email, fax, online or written agreements. If the phrase “Mazal” is used and agreed to by both parties, the deal is concluded. Members cannot go back on their “Mazal” commitments. In the event of a gross or obvious error, members should agree to void the transaction.

4.5  Terms and conditions of sale or memo should be specified in full and in writing. This includes product description, price, date of payment, date of delivery, return of product, shipping, insurance, taxes, custom fees and any other factors important to the transaction. Members should not trade in a manner that leaves room for misrepresentation, misunderstanding or confusion.

4.6  RapNet may publish on its website default transaction terms and conditions that are to be applied in instances where the terms and conditions of sale are not specified by the trading members.

4.7  Bait and switch listings and false advertising are not allowed. Members may not list diamonds or other products for sale at low prices and tell buyers the product is unavailable and then offer alternative products at higher prices. Sellers should ensure that diamond listings contain all relevant availability information. All diamonds listed for sale must exist and the seller must have the right to sell the diamond. Fictitious listings or buy requests are not allowed.

4.8  Diamond listings must be accurate and up to date. All details must be correctly provided in the RapNet format. Treatments, fluorescence, and other details that significantly impact value must be disclosed in the listing.

Diamond location and shipping terms must be fully and accurately provided.

Communication of diamond quality on RapNet must be based on GIA grading standards. Members cannot use GIA terminology while applying non-GIA standards that over-grade diamonds. Members listing over-graded diamonds, (defined as diamonds that are more than one color, clarity or fluorescence grade above the GIA verification grade), may be subject to suspension with full public disclosure of their name and the reason for their suspension. Buyers may require sellers to cancel transactions, accept return of the diamond and provide a full refund in the event they are sold over-graded diamonds.

Members must update the pricing and availability of their RapNet stock at a minimum of every 8 days (daily or more frequently updates are recommended). Users must provide the correct grading report or certificate number for all laboratory graded diamonds, without which RapNet will list the diamond as an uncertified diamond

4.8.1 RapNet does not support the marketing of diamonds using EGL grading reports. Members that market diamonds on RapNet using EGL reports are subject to suspension. 

4.8.2 RapNet does not permit the listing green-tinted (shade) diamonds regardless of origin.  This applies to non-fancy colors only. Most Marange diamonds exhibit a green hue/tint/shade and the ban of Marange diamonds on RapNet is extended to all green tinted diamonds, regardless of origin.  Should any RapNet member purchase a green tinted diamond because it was listed on RapNet after September, 1, 2014, we advise the buyer to return the diamond to the supplier, request a full refund and inform RapNet of the transaction.

 

4.9  Diamonds may be listed and advertised for sale on RapNet as Guaranteed Available. Diamonds listed and advertised for sale as Guaranteed Available must be retained in the physical possession of the RapNet Member throughout the time of their listing, from the time of their listing and at all times thereafter whilst listed and advertised. RapNet Members undertake to keep all details relating to or associated with the listing of their diamonds fully updated at all times whilst listed or advertised on RapNet, and in particular, to take immediate steps to disable or amend the Guaranteed Available status to “none” within 1 (one) hour should there be any change in their Guaranteed Available status. By listing a diamond as Guaranteed Available, RapNet Members agree to these listing rules and conditions and agree to abide by the terms of listing thereof. Should any RapNet Member be found, following investigation, to have listed or advertised a diamond as a Guaranteed Available Diamond contrary to the provisions hereof, he /she may be barred and prevented from listing and advertising for sale Guaranteed Available status diamonds on RapNet, alternatively, their access to RapNet may in the case of flagrant and repeated offences be either suspended or permanently terminated, at the sole and absolute discretion of Rapaport, upon due notice.

4.10  All prices quoted for diamond listings must be for the specific item and location being listed. The price must not include additional hidden or “bundled” conditions such as purchase of additional items, additional shipping fees or other conditions requiring additional payments. White diamond listings below 4 carats in size must include a price.

4.11  Unsolicited email marketing, telemarketing and email broadcast to RapNet members are not allowed. Members must not contact other members who have requested they stop contacting them.

4.12  RapNet Members must return all products provided to them on memorandum in a timely manner.

4.13  Members may use the RapNet rating service to share information about other members. Rating must be honest, fair and factual based on direct business between the parties. RapNet reserves the right to delete ratings at any time for any reason and take action against members making false ratings.

4.14  Members may file complaints about other members by contacting support@rapnet.com. Written complaints may be reviewed by RapNet management who may consider suspending or terminating membership or other sanctions.

 

5  Diamond Searches – Fair Use Policy

5.1  RapNet is a vibrant trading network used by thousands of members every day. To give all members a fair experience and to optimize RapNet response time RapNet has implemented a “fair use” policy with regards to diamond searches. The policy will not limit searches by Members seeking to purchase diamonds, but it will curtail the use of searches for extensive price discovery.

 

6  Trade Alerts, Notices and Announcements

6.1  From time to time RapNet may communicate Trade Alerts, Trade Rules, and other announcements which govern trading activity on the network or advise members of changing market conditions. These communications are part of these RapNet rules.

 

7  Financial

7.1  RapNet Members must fully honor all their financial obligations.

7.2  RapNet members must notify RapNet management in the event they are unable to meet their financial obligations or if they are seeking protection under bankruptcy laws.

 

8  Disclosure

8.1  RapNet reserves the right to publicly disclose the identity of any RapNet Member that violates the RapNet Trading Rules & Code of Conduct Member License Agreement.

9  Communication

9.1  RapNet members are encouraged to share their views with us concerning the RapNet Trading Rules & Code of Conduct and RapNet Member License Agreement and other aspects of our service. Whenever and wherever possible we will try to incorporate the recommendations of our Members. Your comments and suggestions are welcome and appreciated.