Hermes, the renowned French luxury brand, is currently facing an antitrust class action lawsuit in California. The lawsuit centers around allegations of restricting the sale of its highly coveted Birkin handbags to customers with a specific purchase history.
Allegations
The lawsuit, filed in San Francisco federal court by two California residents, accuses Hermes of engaging in anticompetitive practices by tying the sale of Birkin bags to the purchase of other merchandise. The plaintiffs claim that Hermes sales associates pressure customers to buy additional items to qualify for purchasing a Birkin bag.
Birkin Handbag Status
The Birkin handbag is considered an icon of fashion, symbolizing prestige and exclusivity within the luxury sphere. Despite its renowned status, Birkin bags are not available for online purchase, and Hermes stores do not openly display them for sale.
Sales Practices
The lawsuit reveals the secretive nature of Birkin bag sales, alleging that only select customers are granted access to view these items, often in private settings. Sales associates are said to use Birkin bags to encourage customers to buy additional products, rather than earning commissions on the bag sales.
Legal Action
The proposed class action lawsuit aims to represent thousands of US consumers who have purchased Hermes goods or have been coerced into buying them to acquire a Birkin bag. Hermes has not yet responded to the allegations.
Implications
With numerous stores in the US, including California, Hermes is under increasing pressure to address the accusations of anticompetitive behavior. The plaintiffs seek monetary damages and a court injunction to challenge Hermes’s distribution practices regarding its iconic Birkin bags.