On the heels of The RealReal’s stock price hovering around $16 a share, Fashionista.com is now sharing The Capital Forum‘s report on their authentication process or lack thereof.
Over the years, The RealReal‘s authentication claims have been called into question a few times here and there — by customers in review forums who’ve claimed they received counterfeit goods; on Instagram by accounts like Diet Prada; by brands like Chanel, who filed an actual lawsuit; and by news outlets like this one. And a new report lends credence to those who have grown skeptical of the retailer’s standards when it comes to authenticating luxury goods before listing them.
From day one, authentication has been The RealReal’s “thing.” It’s right there in the name, for one, and when the site emerged in 2011, it positioned itself as the most reliable source (compared with, say, Ebay) for secondhand designer goods. And its purported leadership in this area helped it raise $300 million in a recent IPO. “We employ 100+ brand authenticators, gemologists, horologists and art curators. They inspect thousands of items each day, so you can be sure every item is 100% authentic,” reads a page on therealreal.com
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