MASHINIi

The RealReal, Inc..

REAL.US | Retail sale of second-hand goods

The RealReal, Inc. operates an online marketplace for authenticated luxury consignment goods. The company offers a wide variety of pre-owned luxury items, including women's and men's fashion, fine jewelry, watches, art, and home goods. The RealReal authenticates each item, ensuring its quality and l...Show More

Ethical Profile

Mixed.

The RealReal faces ethical scrutiny. Employee reviews cite low pay, high turnover, and poor management; compensation reportedly ranks in the bottom 45% of similar companies, contrasting with CEO Rati Levesque's $10 million in 2023 stock awards. The company has received over 2,040 complaints in three years, primarily concerning counterfeit items and incorrect listings. Chanel notably filed a lawsuit alleging the sale of counterfeit handbags, and critics point to issues undermining its 'No Fakes' pledge. Conversely, its core resale model inherently promotes a circular economy, extending luxury product lifecycles and reducing waste.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-10
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business0
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

No evidence available to assess The RealReal, Inc. on Better Health for All.

Fair Money & Economic Opportunity

0

No evidence available to assess The RealReal, Inc. on Fair Money & Economic Opportunity.

Fair Pay & Worker Respect

-10

Employee engagement scores are low, with an average rating of 3.0 out of 5 stars based on over 1575 Glassdoor reviews.

1
This translates to 60/100 on an engagement scale. Additionally, 36% of employees would recommend the company to a friend, and the overall employee rating is 21% below the average for the Retail & Wholesale industry.
2
Reviews frequently criticize management, communication, and a perceived lack of concern for employee well-being, with specific ratings for management as low as 2.1 out of 5 stars on Indeed.com and 2.5 out of 5 stars on Glassdoor.com.
3

Fair Trade & Ethical Sourcing

0

The RealReal operates as an online marketplace for authenticated luxury consignment goods, primarily dealing with pre-owned items.

1
Its business model does not involve the direct procurement or trade of physical commodities or raw materials. Therefore, the KPIs related to fair-trade certification of inputs and spend on high-risk materials are not applicable to its operations.
2

Honest & Fair Business

0

No specific, concrete data points were found in the provided articles for any of the KPIs in the 'Honest & Fair Business' rubric. While articles mention a lawsuit by Chanel Inc. regarding counterfeit items

1
and a high volume of customer complaints (2,040 in the last 3 years) including issues with counterfeit goods, missing items, and unresponsive customer service,
2
these do not map to the quantitative thresholds required by the rubric's KPIs such as regulatory fines, transparency index scores, or complaint resolution times. The articles also note contradictions between the company's claims of expert authentication and internal practices,
3
but this information does not provide a score for any specific KPI.

Kind to Animals

0

The provided articles do not contain any specific, concrete data points or facts relevant to any of the 'Kind to Animals' KPIs for The RealReal, Inc. The articles explicitly state that information regarding cruelty-free certification, alternative testing, humane certifications, wildlife conservation impact, ethical input substitution, supplier audits, cage-free sourcing, animal testing policy or volume, innovation investment in animal-free technologies, animal agriculture ethics, animal-free R&D collaboration, or public policy engagement on animal welfare is not mentioned or provided.

1

No War, No Weapons

0

The provided articles do not contain specific, concrete data points or facts related to The RealReal's involvement with arms manufacturing, military contracts, conflict facilitation, or peacebuilding initiatives. Both articles explicitly state that they focus on sustainability and social impact, not on arms sales or conflict-related issues, and provide no quantitative data relevant to the 'No War, No Weapons' value.

1
Therefore, no KPIs under this value can be scored based on the evidence provided.

Planet-Friendly Business

0

No evidence available to assess The RealReal, Inc. on Planet-Friendly Business.

Respect for Cultures & Communities

0

No evidence available to assess The RealReal, Inc. on Respect for Cultures & Communities.

Safe & Smart Tech

0

Based on the provided articles, there is insufficient evidence to determine The RealReal's performance regarding Safe & Smart Tech. While the privacy policy (

1
) mentions data retention and compliance with GDPR and CCPA, it lacks specifics on data breach severity, AI ethics governance, cybersecurity investment, and other key performance indicators. The Ketch article (
2
) indicates the use of their platform for consent management and regulatory compliance, improving user data control. However, there is no data available on encryption implementation, AI audit practices, or vulnerability management. The Yahoo Finance article (
3
) focuses on financial metrics and does not provide any information on cybersecurity or privacy practices. Therefore, without more concrete evidence, a neutral score is appropriate. Missing information includes specific details on data protection measures, AI governance, and security investments.

Zero Waste & Sustainable Products

0

No evidence available to assess The RealReal, Inc. on Zero Waste & Sustainable Products.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.