Hermès faces lawsuit alleging discriminatory sale practices for Birkin bags

A class action lawsuit has been filed in California against Hermès for allegedly linking the purchase of its renowned Birkin bags with other Hermès items.

In a lawsuit filed on March 19, two customers allege that they were forced to buy additional items, such as shoes, scarves, belts, or jewelry, from a Hermès store before being allowed to purchase a Birkin handbag.

The legal case alleged that sales staff at Hermès only provide Birkin handbags to customers who have a satisfactory buying record with the French company. The lawsuit states that once shoppers are deemed eligible to buy a Birkin handbag, they will be shown the highly sought-after item – which is reportedly not openly displayed or accessible for purchase on the website – in a private room separate from the main store.

According to the lawsuit, lawyers for Birkin stated that Hermès retail stores do not publicly display Birkin handbags for sale. It is common for these stores to have little or no Birkin handbags available, and if they do, there will usually only be one, two, or three in stock. Even if a specific store has Birkin handbags, they will not be displayed on the sales floor for all customers to see. In fact, most customers will not be shown a Birkin handbag at all in a Hermès retail store.

The legal action claimed that Hermès’ practice of requiring customers to also buy other high-end clothing or accessories in order to purchase a Birkin bag goes against antitrust laws in the United States. The luxury brand has also been accused of using a strategy to take advantage of its dominant position in the market and raise the cost of Birkin bags.

Lawyers highlighted that the organization’s system for compensating salespeople was the motivating factor behind the accused fraudulent plan. According to the legal complaint, Hermès retail staff do not receive any commission for selling Birkin bags, but are compensated with three percent for clothing or accessories.

“According to legal documents, Hermès has directed its sales associates to use the allure of Birkin handbags to persuade customers to buy other products, even though these associates do not receive commission for selling the most coveted and expensive items. This tactic allows Hermès to manipulate consumers into purchasing additional items in order to meet the criteria for being able to purchase a Birkin handbag. By utilizing their sales associates in this manner, Hermès is carrying out an unlawful practice of tying products.”

The plaintiff, Tina Cavalleri, stated that she was forced to spend a significant amount of money at Hermès to be able to buy a Birkin bag. In 2022, when she inquired about obtaining the bag, she was informed that it was reserved for loyal clients who regularly supported the business.

During this time, Mark Glinoga, the plaintiff, tried several times to buy a Birkin bag in the past year. However, he was consistently informed that he would have to also buy other items and accessories.

The plaintiffs are seeking unspecified monetary compensation and a court mandate to prevent Hermès from engaging in potentially unfair business practices.

Fans of fashion have often expressed frustration over the challenges of obtaining an Hermès Birkin bag, which can range in price from $10,000 to exceed $50,000. Some highly sought-after pieces have even sold for upwards of $300,000 at auctions. Despite previous claims, Hermès denied any claims of “tying” practices in an interview with Business of Fashion last year. The company stated that “Hermès strictly prohibits any sales of specific products as a requirement for purchasing others.”

I have reached out to Hermès for a response, as reported by The Independent.

Source: independent.co.uk