Headlines

Luxury Consignment Firm Accused of Misrepresenting Gemstone Weights

Published

6 years ago

December 12, 2017

INSTORE Staff

The RealReal is being sued.

A lawsuit filed in federal court allegest that The RealReal, a luxury consignment company, overstated the weights of gemstones sold on its website.

Plaintiff Gaby Basmadjian claims that RealReal “systematically inflated the total weights of small uncertificated gemstones knowing that the average consumer would have no way to know that the weights were inflated.”

Basmadjian is a Novi, MI, resident who bought a ring for $982.62. “based in part on the representation that the ring contained 2.10 carats of diamonds,” according to the lawsuit. It’s described in the filing as an 18-karat gold cocktail ring featuring round brilliant diamonds.

Basmadjian later had the ring evaluated by a gemologist, who found that it contained only 1.2 carats of diamonds, according to the suit. CBS News first reported on the case.

She is seeking class-action status for the litigation, with the class to include people in the U.S. who, after Dec. 1, 2013, bought jewelry from RealReal “where 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.”

Basmadjian is asking that she and other customers be award the difference between what they paid for RealReal’s jewelry and “what the jewelry would have been priced at with the correct gemstone weight.”

San Francisco-based RealReal touts itself as being “the leader in authenticated luxury consignment with a certified expert inspecting every single item.” The company said in June it had closed a $50 million growth equity financing from private equity firm Great Hill Partners, bringing its total funding to $173 million.

This Third-Generation Jeweler Was Ready for Retirement. He Called Wilkerson

Retirement is never easy, especially when it means the end to a business that was founded in 1884. But for Laura and Sam Sipe, it was time to put their own needs first. They decided to close J.C. Sipe Jewelers, one of Indianapolis’ most trusted names in fine jewelry, and call Wilkerson. “Laura and I decided the conditions were right,” says Sam. Wilkerson handled every detail in their going-out-of-business sale, from marketing to manning the sales floor. “The main goal was to sell our existing inventory that’s all paid for and turn that into cash for our retirement,” says Sam. “It’s been very, very productive.” Would they recommend Wilkerson to other jewelers who want to enjoy their golden years? Absolutely! “Call Wilkerson,” says Laura. “They can help you achieve your goals so you’ll be able to move into retirement comfortably.”