A lawsuit filed in California accuses luxury fashion brand Hermès of anticompetitive behaviour by allegedly making the purchase of its coveted Birkin bags conditional upon buying other Hermès products first.
Hermès, a renowned luxury fashion brand, is currently entangled in a class-action lawsuit filed in California. The lawsuit alleges that Hermès restricts access to its highly sought-after Birkin bags, making their purchase conditional upon buying other Hermès products first. Customers have reported being required to accumulate a significant “purchase history” by purchasing items like shoes and jewellery before being offered a chance to buy a Birkin. These iconic handbags, priced between $10,000 and $50,000, with some exclusive pieces selling for over $300,000 at auctions, are kept in private rooms away from public view in Hermès stores.
The lawsuit accuses Hermès of engaging in anticompetitive practices that violate US antitrust laws, by using its market position to inflate the prices of Birkin bags. It seeks damages and an injunction against Hermès for what it describes as anticompetitive behaviour. Plaintiffs Tina Cavalleri and Mark Glinoga have come forward with claims of being pressured to spend tens of thousands of dollars on other Hermès products to qualify for purchasing a Birkin bag.
Hermès has previously denied practices of tying the sale of Birkin bags to the purchase of other items, emphasizing the brand’s policy against such conditions for sales. The legal battle has attracted attention, highlighting the difficulties fashion enthusiasts face in acquiring one of these luxurious handbags directly from Hermès.
Amidst this controversy, the pre-loved market for Birkin bags thrives, offering an alternative route for those aiming to own a piece of this exclusive fashion statement. Platforms like Amazon are partnering with retailers such as Hardly Ever Worn It (HEWI) to sell pre-owned Birkin bags, making them more accessible compared to the challenging process of purchasing new ones directly from Hermès.
The outcome of the lawsuit remains to be seen, with Hermès yet to respond to the allegations made against it.
