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Hermès is facing accusations in a class action lawsuit in California of making customers buy their popular Birkin bags along with other Hermès products.
Two customers are claiming in a legal complaint, filed on March 19, that they were required to buy additional items, such as shoes, scarves, belts, or jewelry, from an Hermès store before being allowed to purchase a Birkin handbag.
The legal action stated that Hermès employees only provide Birkin handbags to customers who have a significant history of buying from the French brand. As per the complaint, once customers are considered qualified to purchase a Birkin, they will be able to see the highly sought-after item in a private room separate from the regular retail area, rather than being displayed or available for purchase on the website.
According to their lawyers, Hermès retail stores do not publicly showcase Birkin handbags for sale. In some cases, there may not be any Birkin handbags available at all, and if there are, they are limited to one, two, or three. Even if a particular retail store has Birkin handbags, they will not be exhibited on the sales floor for the general public. In fact, the majority of customers will not have the opportunity to see a Birkin handbag at a Hermès retail store.
The legal complaint claimed that Hermès’ policy of bundling the sale of a Birkin bag with other high-end clothing or accessories is against antitrust laws in the US. The high-end retailer has also been accused of using a strategy to take advantage of its dominant position in the market and raise the prices of Birkin bags.
Lawyers stated that the structure for compensating sales employees played a role in the alleged fraudulent plan. According to the legal case, Hermès retail staff do not receive commission on Birkin bag sales, but receive a three percent commission on clothing or accessory purchases.
Hermès’ sales associates do not receive commissions for the products with the highest value and demand, but they are directed by the company to use Birkin handbags as a tactic to persuade customers to buy additional products. This helps the company track and build a purchase history that is necessary for customers to be eligible for a Birkin handbag. The filing states that this is a way for Hermès to exploit the sales associates and carry out a prohibited tying arrangement.
Tina Cavalleri, who was one of the individuals suing, stated that she felt pressured into spending a significant amount of money at Hermès in order to acquire a Birkin bag. In 2022, when she inquired about purchasing the exclusive bag, she was informed that it is reserved for customers who have consistently supported the company.
Last year, Mark Glinoga, the plaintiff, tried several times to buy a Birkin bag, but was informed each time that he had to also purchase other items and accessories.
The individuals filing the lawsuit are requesting an undisclosed sum of financial compensation and a legal ruling that prohibits Hermès from engaging in anticompetitive actions.
Those who have a passion for fashion have often voiced their frustration with the challenges of obtaining an Hermès Birkin bag. These coveted bags can cost anywhere from $10,000 to over $50,000, with some limited editions selling for over $300,000 at auctions. However, Hermès has refuted claims of enforcing bundling practices, as reported by the Business of Fashion in the past year. The company stated, “Hermès strictly prohibits making the sale of certain products a requirement for purchasing others.”
The Independent has reached out to Hermès for a statement.