Lawsuit Alleges Hermes Engages in Discriminatory Birkin Handbag Sales

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Hermes is under fire because of a federal class-action lawsuit filed in San Francisco, California.
Hermes is under fire because of a federal class-action lawsuit filed in San Francisco, California.

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.”

Allegations of Unlawful “Tying” Practices:

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.

Exclusive Access and Discriminatory Sales Tactics:

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.

Coercive Sales Practices and Lack of Commission:

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.

Class Action Status and Legal Remedies:

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.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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