Majors

The RealReal Sued for Allegedly Inflating Stone Weight

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.


A picture and description of the ring purchased by Gaby Basmadjian on TheRealReal.com
After she received the ring, Basmadjian had it inspected by a gemologist to measure the weight of the diamonds, who found that it actually contained 1.2 carats of diamonds, which meant a discrepancy of 0.9 carats.

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. 
Brecken Branstratoris the senior editor, gemstones at National Jeweler, covering sourcing, pricing and other developments in the colored stone sector.

The Latest

Daughters of the Deep indicolite earrings
EditorsNov 06, 2026
The Spectrum Pieces I Can’t Stop Thinking About

From a Betta fish brooch to a “dragon’s trove” of zircon eggs, here are seven pieces that’ve stuck with Associate Editor Lauren McLemore.

Pat Pruitt Dragonfly Earrings
TrendsNov 06, 2026
Pat Pruitt’s DragonFly Earrings Take Flight on Election Night

Groundbreaking New Mexico Governor-elect Deb Haaland wore the earrings, our Piece of the Week, when she declared victory on Tuesday.

GCAL 8X_NJSB_1.jpg
Supplier BulletinNov 05, 2026
Winning With GCAL 8X®: What’s Working at the Counter

Sponsored by GCAL by Sarine

overnight btyb 1026.png
Brought to you by
How Overnight Mountings’ Bridal Builder Makes Custom Engagement Ring Design Easier to Sell

With customization becoming more expected in engagement ring shopping, the Bridal Builder makes the process tangible.

Wrapped holiday gift boxes
SurveysNov 05, 2026
What Retailers Should Know About Holiday Shoppers This Year

From shrinking budgets to AI elves, here are five takeaways from holiday reports by Bain, Adobe, Mastercard, NRF, and insights from YouGov.

Weekly QuizNov 05, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Little Pet Portrait Pendants by Russell Jones & Judi Powers
CollectionsNov 05, 2026
Judi Powers, Russell Jones Unleash Joy With New Collaboration

The designers combined their talents for Little Pet Portraits, hand-painted miniatures of our best friends set in a piece of jewelry.

Brilliant Earth Elizabeth Taylor jewelry
FinancialsNov 05, 2026
Brilliant Earth Continued to Resonate With High-Income Shoppers in Q3

Its non-bridal fine jewelry remains the star of the show, recently launching new collections inspired by Elizabeth Taylor and Jane Goodall.

DeBeersICONS_TITLE1_CUSTOMCONTENT_1872x1052 (1).jpg
Brought to you by
A Diamond Is Forever Launches 2026 Holiday Campaign Championing Natural Diamonds

A Diamond Is Forever's holiday campaign reimagines natural diamond icons for a new generation celebrating individuality.

GIA logo
GradingNov 05, 2026
GIA to Offer Next-Day Holiday Services

The lab will bring back its complimentary next-day service for some reports starting next week.

Cartier bracelet and ring
CrimeNov 04, 2026
$250K+ in Undeclared Cartier Jewelry Seized at Philadelphia Airport

A Pennsylvania woman failed to declare a ring and a bracelet, discarding the boxes and receipts to conceal the purchases, officials said.

Pandora celestial chandelier earrings
FinancialsNov 04, 2026
Pandora’s Q3 Sales Up 7% Amid Focus on Design

New collections and relevant marketing pushed the company forward, while Pandora’s lab-grown diamond sales continue to lag.

NYC Jewelry Week Biolgems Jewelry Exhibition
Events & AwardsNov 04, 2026
NYC Jewelry Week 2026 Is the Largest Edition Yet

The citywide celebration, slated for Nov. 16-22, is set to host more than 175 events, including live jewelry-making demos.

Lanessa Elrod
MajorsNov 04, 2026
Bergdorf Goodman Names New President

Lanessa Elrod, former president and CEO of Louis Vuitton Americas, has stepped into the role as the retailer celebrates 125 years.

Replica of Infinity Gauntlet
AuctionsNov 03, 2026
Infinity Gauntlet Set With 170+ Carats of Colored Gemstones Up for Auction

A replica of one of the most powerful objects in the Marvel Cinematic Universe, the glove is heading to auction next month in Abu Dhabi.

Arthur Klein
IndependentsNov 03, 2026
Longtime Jewelry Marketer Arthur Klein Dies at 89

Klein, who had his own marketing agency and worked for Gabriel & Co. and Trans American Diamond, is remembered as a kind man.

Zadok Jewelers
IndependentsNov 03, 2026
Zadok Jewelers Toasts To 50 Years With Diamond Bracelet Giveaway

To enter the giveaway, locals can purchase a featured beverage from one of eight participating restaurants in Houston and Austin, Texas.

David Yurman Gem Awards Grant 2027 Graphic
Events & AwardsNov 03, 2026
David Yurman Gem Awards Grant Opens 2027 Applications

The grant recipient will be awarded $50,000 as well as mentoring meetings with executives at David Yurman and other industry executives.

Kirstin Viland, Joanna Kovacs, Shari Lukacs
Events & AwardsNov 03, 2026
NAJA, Instappraise Name 2026 Scholarship Winners

The winners include a non-NAJA member seeking training, a member beginning NAJA courses, and a member becoming a Certified Master Appraiser.

Sothebys Romanov sapphire
AuctionsNov 02, 2026
197-Carat ‘Romanov Sapphire’ Heads to Sotheby’s Geneva

The rare jewel, which has links to Russia’s Romanov dynasty, is estimated to fetch up to $2 million.

Fake Audemars Piguet watch
CrimeNov 02, 2026
Customs Seizes More Than 400 Fake Audemars Piguet Watches

It is one of several seizures of counterfeit jewelry and watches by U.S. Customs and Border Protection officials in Louisville this year.

Jewelers of America new board members
MajorsNov 02, 2026
Lawrence Bock, Caryl Capeci, Amanda Coleman-Phelps Join JA Board

Jewelers of America announced the additions to its board of directors following its annual general meeting, held last week.

Kristi Yamaguchi Wearing Always Dream Collection
CollectionsNov 02, 2026
Olympian Kristi Yamaguchi, Heller Jewelers Expand ‘Always Dream’ Collection

The jewelry collection supports Yamaguchi’s Always Dream foundation, which provides reading and educational resources to families in need.

2026 AGTA Spectrum & Cutting Edge Awards Best Of Winners
Events & AwardsOct 30, 2026
Illuminating Carved Paraiba Pendant, Suite of Moonstones Wow at Spectrum Awards

Spectrum’s “Best of Show” honors went to a 101-carat Paraiba carved to look like Medusa that has a magnet-activated LED light.

Edina Kiss Eye Pendants on Charm Necklace
TrendsOct 30, 2026
Edina Kiss’ Pendants Say ‘Eye’m Watching You’

Our Halloween Pieces of the Week are four “Eye” pendants, each set with colorful gemstones.

Alexis Hoopes
MajorsOct 30, 2026
The RealReal Hires Former eBay Exec as New Chief Merchandising Officer

Alexis Hoopes expanded eBay’s “Authenticity Guarantee” program during her tenure.

Rolex store exterior Bellevue Washington
WatchesOct 29, 2026
Bucherer Opens Rolex Boutique in Washington State

The Rolex-owned retailer’s new 4,700-square-foot store’s façade honors the Pacific Northwest’s evergreen forests.

Norma Wellington spider web pendant
TrendsOct 29, 2026
Amanda's Style File: All Treats, No Tricks

Get into the Halloween spirit with this roundup of 13 spooky jewels.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy