CrimeApr 28, 2025
Customs Seizes Nearly 2,000 Pieces of Counterfeit Van Cleef & Arpels JewelryU.S. customs agents in El Paso, Texas, intercepted the package, which would have been worth $9 million if the jewelry was genuine.
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.
The Latest
TrendsApr 28, 2025
Suzanne Kalan Launches Tech Ring Jacket CollectionHealth monitors become statement pieces when paired with the brand’s new collection of stackable diamond-studded bands.
Events & AwardsApr 28, 2025
JCK Industry Fund Announces 2025 Grant RecipientsTen organizations were selected this year.
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
IndependentsApr 28, 2025
John Atencio Appoints 2 to Wholesale TeamKim Carpenter and Sam Gevisenheit have joined the brand.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
