Hermès faces a lawsuit in California alleging it restricts Birkin bag sales to only those deemed ‘worthy’ by the company.
Two California residents, Tina Cavalleri and Mark Glinoga, have filed a lawsuit against the French luxury brand Hermès, asserting that the company unlawfully restricts customers by allowing only those with a “sufficient purchase history” to purchase its renowned Birkin handbags. The lawsuit alleges that Hermès is violating antitrust laws by “tying” the sale of one item to the purchase of another, thereby leveraging its market power. According to the complaint, Hermès sales associates compel customers to purchase additional Hermès products such as shoes, scarves, and jewelry to gain access to the coveted Birkin bags.
“The unique desirability, incredible demand and low supply of Birkin handbags gives [the brand] incredible market power,” the lawsuit claims. “Defendants [Hermès] implemented a scheme to exploit this market power by requiring consumers to purchase other, ancillary products from [them] before they will be given an opportunity to purchase a Birkin handbag. With this scheme [the brand was] able to effectively increase the price of Birkin handbags and, thus, the profits that Defendants earn from Birkin handbags.”
The lawsuit states that the Birkin, a popular luxury designer item, is unavailable for purchase online or directly from a Hermès store. Moreover, the bags are not even showcased for sale within the company’s retail outlets.
“Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag [in a private room],” the lawsuit read.
According to the lawsuit, Cavalleri reportedly spent tens of thousands of dollars on Hermès products with the intention of gaining access to Birkin bags. However, when she contacted Hermès in 2022 to inquire about purchasing another Birkin bag, she was informed that these specialty bags were reserved for “clients who have been consistent in supporting” the brand. Similarly, Glinoga had plans to buy a Birkin handbag in 2023, but a sales associate advised him to purchase additional products if he wanted to acquire a Birkin handbag.
Nevertheless, the lawsuit seeks to attain class-action status on behalf of thousands of U.S. consumers who either bought products from Hermès or were required to do so to qualify for purchasing a Birkin bag. Additionally, Cavalleri and Glinoga are pursuing unspecified monetary damages and a court injunction to prohibit Hermès from engaging in what they allege to be anti-competitive practices.
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