CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
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
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
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
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.
SurveysMay 01, 2024
Consumer Confidence Falls in AprilConcerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
SourcingMay 01, 2024
Opsydia Names New Sales and Marketing Director Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
CrimeMay 01, 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.
CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue BookThe “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
Events & AwardsApr 30, 2024
Canadian Jewellers Association Brings Back the Summit It’s the second year for the event, slated to take place in October in Toronto.
Recorded WebinarsApr 29, 2024
Watch: Diamond Identification and Evaluation - How to Protect your BusinessSupplier Spotlight Sponsored by GIA
SourcingApr 29, 2024
De Beers to Move Auction HQ from Singapore to BotswanaSales will be paused while the relocation takes place over the next few months.
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
IndependentsApr 29, 2024
Venus Jewelers Relocating After 45 YearsThe retailer is moving to a newly designed space in the same shopping center.
SurveysApr 29, 2024
Mother’s Day Jewelry Spending to Reach $7B, Says NRFGifts that are unique and thoughtful are top of mind this year, according to the annual survey.
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.
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.
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.
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.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
