A highlight from Fashion's Frankenstein Poison
Hey y'all, this is Lisa. And this is Karen. And this is pop passion. Hello. How are you doing today? Welcome to your fashion news comedy podcast. Thank you so much for having me. It's a pleasure to be a guest for the 378th million time. Once again, back on our bullshit. Welcome to everybody. I'm sitting here like legit filing my nails back on my bullshit. Let me put the nail file down. That's not the time for that. We gotta do a show. I can't be primping and preening. I kind of like it though. It's very kind of like we were talking about the other day, fashion villain where you're discussing the news. Yes. Filing your nails at the same time. Yeah, like good in theory, but in reality, so many of our listeners listen through headphones that I'm not going to do it to them like that. I'm not going to reverse ASMR to you, you know? I am going to trim this one thumbnail, but then I'm going to be done. Okay, it's done, sorry. It's done. I'm sorry, I'm the subway rider of your nightmares. Only in my own home. It's just the fact that I did this publicly, but in my own anyway, I'll work that all out in therapy next week. That's fine. That's totally fine. All right, let's just jump right into it. Lisa, you got a story to tell us. I've got really an update. And it's a long time coming. It is a reminder of how long legal processes take. The legal system is not a fast fix for anything. So remember in your mind's eye back in the year 2019, do you remember it? I remember it. Barely. Back in 2019, the real real got hit with two lawsuits. Both claiming essentially the same thing that the authentication process for the luxury goods that the website was consigning and selling was not stringent enough. And that inflated claims by the company about how good their authentication process was. Artificially drove up the purported value of the company on the eve of its initial public offering on the stock market. You following? Oh, I am, because I remember waiting for that IPO being like, what is about to happen? Yeah, yeah. Well, what is happening now is that as long as the core in each case approves it, there are two settlements on the table, according to an article from the fashion law. Now keep in mind that when a settlement has reached the defendant does not need to admit fall in this case, the real world did not admit fault. Agreeing to a settlement basically says, I'm going to do XYZ to make this problem go away. For one of the cases, the real real is going to pay $11.5 million to people who were allegedly duped into buying stock at a higher price than warrenton. In the other, the money is pretty nominal, mostly like legal fee payments. It's under a $1 million. But the real real has agreed to make some reforms, and this is where it gets interesting. This is the juicy part, right? This is the juicy part. This is, this is the real real of the real real. For a period of at least three years, the real reals COO must incorporate and oversee semi annual assessments of all authentication staff and certifications into the company's existing training programs. So they already have an authentication training program for employees. They're basically going to strengthen it and add in these semi annual tests. Do you know what your authenticating, basically? And on top of that, the company has to rewrite its whistleblower policy to clarify what kinds of activities can be reported and how to do that. IE, like anything related to business practices or ethical practices. Dang. This is good. This is headed in the right direction. It should have been done from the beginning. But it tells me something about what was happening at that company. Yeah, it really does. I love that you have two cases that are essentially about the same thing and they both have very different outcomes. And the one they're like, let's get some money back into people's pockets. In the other, they're like, ah, it's not really about the money. We want you to do this other stuff. And it's that other stuff that I think is like a bigger blow to a company half the time. Well, I mean, that's cut back on the fuckery is really what it's about. It's like give people a chance to talk if they see something going on. And then essentially, let's audit. Let's audit what's happening with these authentication practices, which is actually a really good business practice anyway. That's a really smart thing to incorporate. It doesn't sound easy. But it sounds like a really great thing. Yeah. It doesn't sound easy, but if you want it easy, you should have thought about that before you scaled up this business. Building a foundation authentication and then having questionable ways of carrying that out. And being held accountable for it, authentication is hard. It's a hard practice, considering how many fakes are on the market. The expertise is so specific. And the people who have it are just amazing at what they do. But it's hard to scale. It's hard to scale. And that's where the problems come in. Yeah. I would love to be trained by a luxury expert to be able to identify real versus fake luxury products in the blink of an eye. But I can't imagine that they would be able to train me up in three weeks a month 6 months a year. I feel like this is a body of work that takes time to build. So yeah, when you're trying to scale, either you need to find people who already have those skills or you need guardrails in place while they're learning. As an industry that would be great for an apprenticeship program where you're learning. Yes. It's hard work. It's hard work. It's interesting, detective work.