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Hermes, the renowned French luxury brand, is controversial as it faces a federal class-action lawsuit filed in San Francisco, California.
The lawsuit, brought forth by two California residents, accuses Hermes of engaging in anticompetitive practices by restricting the sale of its iconic Birkin handbags to customers with a “sufficient purchase history.”
The lawsuit alleges that Hermes violates antitrust law by “tying” the sale of Birkin handbags to purchasing other Hermes products.
According to the complaint, the company’s sales associates actively encourage customers to buy additional items such as shoes, scarves, and jewelry to gain the opportunity to purchase a Birkin.
The plaintiffs argue that Hermes employs discriminatory sales tactics, limiting access to Birkin handbags only to customers deemed “worthy” by the company.
Furthermore, Birkin handbags are unavailable online and not openly displayed in Hermes retail stores. Instead, they are presented privately to select customers in designated areas.
The lawsuit claims that Hermes sales associates do not receive commissions on Birkin bag sales.
Instead, they are instructed to leverage the allure of Birkin handbags to compel customers to purchase additional Hermes products.
According to the plaintiffs, this coercive tactic constitutes an abuse of market power by the luxury retailer.
The lawsuit seeks class-action status on behalf of thousands of U.S. consumers who have purchased Hermes goods or have been pressured to do so to acquire a Birkin handbag.
The plaintiffs are pursuing unspecified monetary damages and a court order to halt Hermes’ allegedly anticompetitive practices.
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