CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
MajorsDec 19, 2017
The RealReal Sued for Allegedly Inflating Stone Weight
One consumer claims she overpaid for a ring on the e-commerce site that ended up being 43 percent smaller than the company indicated online.
San Francisco--A lawsuit has been filed against luxury consignment website The RealReal for allegedly inflating the stone weight of the jewelry listed on its website.
Novi, Michigan-based Gaby Basmadjian initially filed the complaint in U.S. District Court in the Northern District of California on Dec. 4.
In it, she states that she bought a ring from TheRealReal.com on Aug. 30 for $982.62, based in part on the ring’s 2.10 carats of diamonds.
As the lawsuit claims, Federal Trade Commission rules state that diamond weights have to be accurate within 1/200th of a carat.
In addition, nowhere on the product description did it indicate the weight was approximated, the lawsuit states.
The RealReal has a consignment process that allows individuals have the items they want to sell shipped, dropped off or picked up by RealReal. After the company receives the piece, its team of experts then authenticates, prices and sells the item on the website.
Through its authentication process, The RealReal guarantees everything being sold is “100 percent the real thing.”
But Basmadjian believes, according to the lawsuit, that The Real Real “intentionally overstated the weight of the diamonds.”
The suit also states that The RealReal’s products vary by “far more than that allowed” under FTC guidelines, and adds that consumers aren’t advised that weights are approximate nor are they advised that the weight of stones could vary within a certain range.
In addition to seeking damages for The RealReal’s alleged fraud, negligent misrepresentation and violations of a number of California state laws, the suit also is asking the court to approve a proposed class-action lawsuit.
It would represent everyone who purchased one or more pieces of jewelry from The RealReal after Dec. 1, 2013 in which “the weight of gemstones indicated on the product label exceeded the actual weight of the gemstones in the jewelry by more than 1/100 of a carat (1 point, 2mg).”
In a statement issued to National Jeweler, a company spokesperson said their mounted diamond and gemstone inspections are performed consistent with GIA standards, and, in accordance with those industry standards, they don’t remove the gemstones from
Editors' Picks
Sponsored by
their mounting where doing so would damage or destroy the original setting and so the product itself.
She added, “The RealReal is committed to the highest standards in everything we do. All gemstones sold by consignors on our website are evaluated by our team of skilled gemologists consistent with industry standards. The lawsuit is without merit and The RealReal will aggressively defend itself against these baseless claims. We have no further comment on the lawsuit.”
Earlier this year, the company secured an additional $50 million in funding from Great Hill Partners, bringing its total funding to $173 million, and opened its first brick-and-mortar location in November.
CEO Julie Wainwright also told TechCrunch the retailer was on track to sell $500 million in merchandise this year.
Editor’s note: This story was updated on Dec. 20, 2017, to add a statement from the company.
She added, “The RealReal is committed to the highest standards in everything we do. All gemstones sold by consignors on our website are evaluated by our team of skilled gemologists consistent with industry standards. The lawsuit is without merit and The RealReal will aggressively defend itself against these baseless claims. We have no further comment on the lawsuit.”
Earlier this year, the company secured an additional $50 million in funding from Great Hill Partners, bringing its total funding to $173 million, and opened its first brick-and-mortar location in November.
CEO Julie Wainwright also told TechCrunch the retailer was on track to sell $500 million in merchandise this year.
Editor’s note: This story was updated on Dec. 20, 2017, to add a statement from the company.
More on Majors
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
FinancialsApr 24, 2024
Kering’s Jewelry Brands a Bright Spot in Tough Q1The luxury titan posted declining sales, weighed down by Gucci’s poor performance.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
