French luxury brand Hermès has found itself embroiled in controversy as it faces a lawsuit in California accusing it of discriminatory sales practices surrounding its iconic Birkin handbags.
According to the lawsuit filed by two California residents, Hermès is accused of unlawfully restricting the sale of Birkin bags to customers with a “substantial purchase history” with the company. The plaintiffs claim that this practice violates antitrust laws by essentially tying sales of Birkins to purchases of other Hermès products.
The lawsuit alleges that Hermès sales associates actively promote the purchase of additional items such as shoes, scarves and jewelry as a condition for receiving the opportunity to purchase a Birkin. They argue that this strategy unfairly benefits some customers and creates barriers for others.
Notably, Birkin handbags are not available for purchase online from Hermès, and they are not openly displayed in the company’s retail stores. Instead, they are selectively presented in private rooms to customers deemed “worthy”, further increasing their exclusivity and allure.
The complaint also highlights that Hermès sales associates do not receive commission on Birkin sales, but are instructed to use the handbag as leverage to encourage customers to purchase the accessory. .
The lawsuit seeks class-action status on behalf of thousands of American consumers who have either purchased Hermès goods or been pressured to do so in order to gain access to Birkin handbags. Since Hermès operates numerous stores across the US, including several in California, the potential impact of the lawsuit is significant.
As the legal battle unfolds, the plaintiffs are seeking unspecified monetary damages and a court order to stop Hermès’ alleged anti-competitive practices.
Stay tuned as the luxury handbag controversy continues to rage, challenging the exclusivity and accessibility of iconic fashion icons like Birkin.