French luxury brand Hermès is under legal scrutiny in California for allegedly restricting sales of its iconic Birkin handbags, a practice that could violate US antitrust laws.
French luxury brand Hermès is currently involved in a class action lawsuit filed in California, alleging that the company restricts sales of its famed Birkin handbags to customers who have made previous purchases. The lawsuit, spearheaded by plaintiffs Tina Cavalleri and Mark Glinoga, accuses the luxury brand of engaging in practices that may be in violation of US antitrust laws. It is claimed that Hermès sales associates are directed to use the allure of the Birkin bag to encourage customers to buy additional luxury items, a strategy said to artificially increase the demand and price of the Birkin bags. These bags, named after British actor Jane Birkin and noted for their exclusivity and high price, are reportedly not openly displayed in stores but are shown to select customers in private rooms.
The lawsuit further highlights that Hermès’ commission structure incentivizes sales associates to sell products other than the Birkin bags, as they do not earn any commission on Birkin sales. Plaintiffs allege that they were pressured into making significant purchases with the expectation of being given the opportunity to buy a Birkin bag. The legal action seeks to address these alleged anticompetitive behaviors by demanding monetary damages and a court order to halt such practices.
The case has been filed in San Francisco, drawing attention to the challenges consumers face in acquiring Hermès’ highly coveted fashion accessories. Hermès has yet to publicly respond to the allegations made in the lawsuit.
