During Sunday's episode (16 March), Gemma was in tears as she explained her true feelings to Arg after it emerged that they had slept together in the past week.
Earlier in the show, after learning of their recent night together, Elliott Wright had warned Arg not to take advantage of Gemma.
Later in a discussion with Ferne McCann, Sam Faiers and her sister Billie, Elliott said: "From a man's point of view, he's using her and he's playing on her emotions and that ain't fair."
Gemma finally got a chance to speak to Arg at a party later on and confessed: "It's a laugh when we get together, and I do things for you that I would never do for anyone else, but deep in my heart I do love you James."
Not having the same feelings romantically, Arg replied: "I appreciate you saying that, it's really nice of you to say that. I care about you lots and I love you as a friend.
"I think I've probably been a bit selfish. Obviously it doesn't happen all the time, it happens once in a blue moon."
While Arg suggested that they should "avoid temptation" and just remain friends, a tearful Gemma explained: "The thing is, it's not that. The point I'm trying to make is that we do have a great time together and I've got these feelings for you, but you're too young and I'm too old.
"I need to be with a man and you need to be with someone young. It's just a shame. I know long term it's never going to work. It's just a shame in life when you meet someone and you can't be with them."
Straight after the show, boutique owner Gemma, who split from fiancé Rami Hawash in January, said: "@elliottwright_ thank you for always having my back #Friends and I have moved on from @RealJamesArgent FOR GOOD THE END x."
Elliott replied: "@missgemcollins @RealJamesArgent I will always be there babe xxx u know that x chin up girl x."
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