Hermes Sued in Antitrust Class Action Lawsuit Over Sale of Birkin Bags


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Reuters API

Published


March 20, 2024

French luxury house Hermes has been sued in California over allegations that it illegally only allows customers with “sufficient purchasing history” with the company to purchase its famous Birkin bags.

Reuters

Hermes is violating antitrust law by “tying” the sale of one item to the purchase of another, two California residents alleged in the proposed federal class-action lawsuit filed Tuesday in San Francisco.

The company's sales associates are pushing the plan by pressuring customers to buy shoes, scarves, jewelry and other items for a chance to buy a Birkin, according to the lawsuit.

Hermes and the plaintiffs' attorneys did not immediately respond to requests for comment.
The lawsuit calls Birkin bags, long considered a status symbol, a “fashion icon.”

Consumers cannot buy a Birkin online at Hermes, and the leather bags, which are handmade and can cost thousands of dollars each, are not displayed for sale in the company's retail stores, according to the lawsuit.

“Generally, only those consumers who are deemed worthy of purchasing a Birkin bag will be shown a Birkin bag (in a private room),” the lawsuit states.

Hermes sales associates do not earn commissions on sales of Birkin bags and are instructed to use the bags “as a way to force consumers to purchase ancillary products,” according to the complaint.
The lawsuit said it sought class-action status for thousands of American consumers who purchased Hermes products or were asked to purchase them in order to purchase a Birkin.

Hermes operates about 43 stores in the United States, including eight in California.
The plaintiffs are seeking unspecified monetary damages and an injunction enjoining Hermes' allegedly anti-competitive practices.

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