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Hermes Sued in US Over Alleged Conditional Sales Practice for Birkin Bags

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Hermes Sued in US Over Alleged Conditional Sales Practice for Birkin Bags

by Geraldine S.
03/21/2024
in Luxury Goods

In California, a group of customers has initiated a class-action lawsuit against the luxury fashion company Hermes, alleging that the firm imposes a condition requiring customers to purchase additional luxury items before being eligible to buy the highly coveted Birkin handbag. The lawsuit contends that individuals are required to invest in products such as scarves, shoes, and belts, potentially amounting to tens of thousands of dollars, to have the opportunity to purchase one of the world’s most prestigious handbags.

Plaintiff Tina Cavalleri claims that when she expressed interest in purchasing the iconic handbag in 2022, she was informed by the company that specialty bags are reserved for “clients who have been consistent in supporting our business.” Another plaintiff, Mark Glinoga, experienced a similar situation last year when he was advised by sales associates to buy additional products from Hermes with the implication that it would increase his chances of obtaining a Birkin handbag.

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The Birkin bag, named after Franco-British actress Jane Birkin, is renowned for its luxury and exclusivity. Prices for the handcrafted leather purses start at $10,000 and can exceed $1 million, attracting the attention of celebrities like Khloe Kardashian, Jennifer Lopez, and Victoria Beckham. Notably, the bags are not displayed in stores or available for online purchase.

According to the lawsuit, “Most consumers will never be shown a Birkin handbag at an Hermes retail store. Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown one, often in a private room.” The suit further explains that consumers are not able to custom order a bag to their specific preferences regarding style, size, color, leather, and hardware.

The lawsuit seeks unspecified damages and highlights that Hermes sales associates do not earn commissions from Birkin bag sales but do receive a 3% commission on other Hermes products. It alleges that the company’s sales strategy uses the allure of the Birkin bag to coerce customers into purchasing other items, a practice the plaintiffs argue violates antitrust laws by artificially inflating the cost of obtaining a Birkin handbag. The legal action is open for others who have faced similar sales conditions to join.

Stay informed with supply chain news on The Supply Chain Report. Learn more about international trade at ADAMftd.com.

#HermesLawsuitNews #BirkinBagNews #LuxuryFashion #FashionIndustry #AntitrustLawNews

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