The Fraud Codex

Back to all sites

Is The RealReal a Scam?

therealreal.comProceed with Caution
Risk Assessment
40%Risk Score
Medium Risk

Summary

The RealReal is a legitimate luxury consignment marketplace (NASDAQ: REAL). While the company is real, it has faced lawsuits over authentication accuracy and financial struggles.

The RealReal is a legitimate company but has HAD AUTHENTICATION ISSUES. Some fakes have been sold as authentic. Do your own verification on high-value items.

Company Information

Parent Company
The RealReal, Inc.
Founded
2011
Headquarters
San Francisco, CA
Stock
NASDAQ: REAL
Employees
2,500+

Trust Indicators

Concerns

  • Authentication accuracy questioned in lawsuitshigh[source]
  • Company has faced financial challengesmedium[source]
  • Some counterfeits have slipped throughhigh[source]
  • Low payouts to consignors reportedmedium[source]
BBB Rating
B-
Trustpilot
1.4/5
BBB Complaints
1,200

💡 Recommendations

  • 1.Get independent authentication for expensive items
  • 2.Use buyer protection if authenticity is in doubt
  • 3.Check serial numbers and authentication papers yourself
  • 4.Be extra careful with brands frequently counterfeited
  • 5.Consider alternatives like Vestiaire Collective for comparison

📚 Sources

The RealReal Investor RelationsSEC EDGAR - The RealReal FilingsNASDAQ Stock InfoReuters - Authentication Lawsuit SettlementBBB Business Profile
Last updated: 2026-01-22

Disclaimer: This analysis is for informational purposes only. Information may be incomplete, outdated, or inaccurate. Our assessments should not be the sole basis for financial, legal, or personal decisions. Always conduct your own research and due diligence.