Chanel accuses the RealReal of selling counterfeit handbags

Chanel has claimed digital luxury consignment shop the RealReal is
guilty of selling fake handbags. It is a serious claim, especially
against a retailer that prides itself in its authentication methods.
The RealReal states on its website, “We know exactly how to tell a
real from counterfeit, from the quality of the leather to the zipper
manufacturer.”

The resale retailer describes its authentication system as “an
expert behind every item.” The RealReal employs over 50 brand
authenticators, gemologists, horologists and art curators who spend
their work days inspecting items to ensure everything sold through the
site is 100 percent authentic.

Chanel filed a trademark complaint against the RealReal in a New
York federal court last week, claiming that “through its business
advertising and marketing practices,” the RealReal “has attempted to
deceive consumers into falsely believing that The RealReal has some
kind of approval from or an association or affiliation with Chanel or
that all CHANEL-branded goods sold by The RealReal are authentic.”

According to The Fashion Law, the Parisian fashion house said that
it believes that the RealReal has sold at least seven counterfeit
Chanel handbags that are “vastly inferior and materially different
from genuine Chanel products.” Chanel has also raised question with
the training of the RealReal’s authentication experts, stating that
only the brand itself can confirm what is genuine Chanel.

The RealReal told Retail Dive yesterday that it rejects Chanel’s
claims. “Chanel’s lawsuit is nothing more than a thinly-veiled
bullying effort to stop consumers from reselling their authentic used
goods, and to prevent customers from buying those goods at discounted
prices,” the statement read. “They are trying to stop the circular
economy. The RealReal stands behind its authenticity guarantee and
will continue to provide a safe and reliable platform for consumers to
resell luxury items.”

Chanel’s problem lies within discounts on its products

This isn’t the first time Chanel has raised issue with consignment
of its luxury goods. In March, the luxury brand filed a similar
trademark claim against New York vintage store What Goes Around Comes
Around. Chanel alleged that the store was selling counterfeit handbags
and was “piggybacking” on Chanel’s reputation for its own
marketing.

Similar to the RealReal, What Goes Around Comes Around holds high
standards of authenticity. According to its website, “WGACA’s expert
buyers travel the globe to find the rarest and most desirable pieces
in exceptional condition. Their quality standards are unrivaled in the
industry and only matched by their dedication to authenticity.”

It seems that Chanel’s main concern is with the accessibility of
its products. Consignment and vintage retailers allow shoppers the
opportunity to pay a lower price on high quality luxury items, on a
scale much lower from the prices the brands set for their own retail.
While luxury pricing is mostly rooted in the high cost of production
and quality of materials, brands do rely on high prices to ensure a
level of exclusivity to their products and those who purchase them. At
a conference last week, argued that luxury brands should prevent their retail
partners from discounting items to keep luxury products expensive and
exclusive.

Photo: via Whatgoesaroundnyc.com