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Is this not as opposed to fake leather (plastic)? They could just say that it is leather or real leather, but that does not sound as fancy.
It's actually a technical term disguised as common language.
Most people think genuine means "as real as you can get". Which is true in everyday language.
But when it comes to leather, "Genuine" is a quality grade that means "The lowest quality of leather that technically includes actual animal hide." Usually it's bits and pieces glued together.
Consider it the hot dog of leather.
I am pretty sure that "bits and pieces glued together" is the grade directly below it known as "bonded leather". I think "genuine leather" is the first grade that is real leather. It just isn't actually very good leather.
I wasn't very confident about the bits and pieces, so I looked it up, and calling it hot dog leather is accurate.