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Hermes Faces Lawsuit Over Alleged Selective Birkin Bag Sales

Hermes Faces Lawsuit Over Alleged Selective Birkin Bag Sales

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Hermes Faces Lawsuit Over Alleged Selective Birkin Bag Sales

by Daisy D.
03/21/2024
in Luxury Goods

Luxury retailer Hermes is embroiled in a new lawsuit alleging that it restricts access to its coveted Birkin handbags to customers who have made significant purchases at the store.

The lawsuit, filed this week in San Francisco, claims that Hermes violates antitrust laws by requiring customers to buy other goods before being allowed to purchase a Birkin bag.

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Birkin handbags, renowned for their craftsmanship and luxury, command high prices and are favored accessories among celebrities. However, the lawsuit asserts that obtaining a Birkin at Hermes isn’t as simple as walking into the store and making a purchase. Instead, customers deemed eligible are ushered into private rooms to view the bags.

Sales associates at Hermes are allegedly instructed to offer Birkin handbags only to customers with an established purchase history or profile, primarily based on their spending on ancillary products like shoes, scarves, and jewelry.

Although the lawsuit contends that sales associates don’t earn commissions on Birkin sales, they are purportedly incentivized to promote other products by receiving a 3% commission.

Hermes has yet to respond to requests for comment on the matter.

The lawsuit seeks class action status for U.S. residents who, within the past four years, were either required to purchase ancillary products to buy a Birkin or had bought such products for that purpose.

Plaintiffs are pursuing unspecified monetary damages and an injunction against the alleged selling practices.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Tags: Associated Press, business, lawsuits

Get comprehensive supply chain report news updates at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#HermesLawsuit #BirkinBagControversy #LuxuryRetailLegal #SelectiveSalesScandal

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