The RealReal Is Being Sued Over Its Return Fees
Another day, another online retailer hit with a class-action lawsuit. In July, The RealReal, the preeminent luxury vintage retailer, was hit with a complaint from a customer named Marvin Fadrigo, who accused the resale outlet of charging junk fees, or additional costs that are not transparently disclosed to the customer. Fadrigo’s suit, which was originally filed in state court in California, alleges the retailer’s return fees are “deceptive, unfair, and illegal under California law.”
Fadrigo’s suit hinges on what he described as the “surprise $14.95” that The RealReal charges customers to return items. He claimed the retailer uses “these deceptive advertising practices because it knows consumers are less likely to order products — especially used clothing and accessories — if they are not free to return the items without penalty.” The suit goes on to accuse The RealReal of manipulating consumers into paying a cost “hidden entirely during the purchase.” Fadrigo also argues that the fee is a “sham” that does not “correspond to any actual shipping costs or ‘processing’ work performed by The RealReal.”
The company denied these allegations in a notice of removal filed on September 5, which moved the case to federal court. The RealReal said that notice of the return charge is “disclosed to consumers in several places, including without limitation TRR’s contracts, return policy, in-store signage, and website.” The company further alleged that Fadrigo “entered into a consignment contract” with The RealReal “not once but twice,” and has been actively selling and buying items on the platform for years. The company claimed that Fadrigo has sold 2,862 items through The RealReal, “earning at least $412,808” in commission. Fadrigo has also spent “nearly $34,000 on purchases, across at least 40 orders,” according to the company’s filing. Both Fadrigo and The RealReal did not immediately respond to requests for comment.
Fadrigo’s suit was brought on his behalf as well as on behalf of “all persons who, within the applicable state of limitations, were ever charged” a return shipping and processing fee. His legal team is requesting restitution, “compensatory, statutory, and punitive” damages, coverage of attorneys’ fees, and a jury trial. A hearing in the case is scheduled for January 23, 2026. So if you’ve ever made a return at The RealReal, you may want to stay tuned.