How do I handle a defect-rate dispute with a factory?
925 sterling silver jewellery, set with lab grown diamonds and made in our own Shenzhen workshop.

Talk · B2B / custom / OEM
A brand rejects part of a 500-piece order, saying 12% of pieces have visible defects. The factory says it is within normal limits and offers no remedy. The brand wants to know how to resolve the dispute.
Go back to what was agreed in writing: the specification, the approved sample, the defect definitions, the inspection method and the remedy. If those are not defined, define them now with evidence from a sampled inspection, record the defects with photos, and propose a specific remedy such as rework, replacement or a price adjustment. Keep tone and records factual.
Step by step
- Collect the documents. Purchase order, specification, approved sample, quotation terms and messages about quality.
- Define the defects. List what you found, with photos, and note which are cosmetic, functional or safety-related.
- Check against the specification. Is each defect something the spec prohibits, or something not covered?
- Count in a consistent way. Use a defined method, not an estimate.
- Agree the method. If the contract names a sampling plan, use it. If not, propose one.
- Propose a remedy. State what you want and by when.
- Keep a record. Save everything in one folder.
Sampling methods
Fact ISO 2859-1 provides sampling plans indexed by acceptance quality limit (AQL) for lot-by-lot inspection: the lot size and inspection level give a sample size, and the AQL gives the numbers of defects at which the lot is accepted or rejected. A commonly used reading is that an AQL is a process-quality target, not permission to supply defects.
Uncertain ISO 2859-1 applies only if the contract refers to it, and the AQL, inspection level and defect classes have to be agreed between the parties. We have not found a single defect rate that applies to all jewelry, so any figure must come from your agreement.
Common reasons for disputes
- No written definition of "defect" or "acceptable".
- An approved sample that differs from production.
- Different lighting or viewing distances.
- Disagreement about whether a defect is repairable.
- A deposit already paid, which reduces leverage.
How to resolve it
Our advice Start with a joint review of the evidence, ideally with a third party if the value is high. Offer a way out: rework of the failed pieces at the factory's cost, a replacement of the worst pieces, or a discount for the rest. Put the agreed settlement in writing before shipping.
For next time
Our advice Put the defect definitions, the sampling plan, the AQL, the remedy and the inspection date in the purchase order, and keep a retained sample.
It depends A strict standard costs more, so match it to the product and to what your customers expect.
Related reading: Jewelry Quality Control Checklist for Production Orders · Jewelry Production Tolerances Explained
Sources
Fact = stated by the cited source. Our advice = editorial recommendation. Uncertain / it depends = limits of what can be said in general.
Other perspectives from the ZKZ team
Stay factual and keep the relationship if you can. Send photos and a numbered list, propose a remedy and give a date. It is more likely to get a response than a general complaint.
If a defect affects safety, such as a loose stone or a sharp edge, or a claim you make, such as the metal marking, treat it as more than cosmetic and keep those pieces off sale.
Ask the factory to explain the cause of each defect type. Knowing whether it comes from casting, setting or finishing helps you agree on fixes and on prevention.
Have a different question? Ask our team, or browse more answers in Talk.
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