Disgruntled shoppers file lawsuit against Hermès over Birkin bags

SACRAMENTO: Two California residents filed an antitrust lawsuit against the luxury fashion brand Hermès over its sales practices regarding its famous Birkin bags.

The Birkin bags are renowned for their exclusivity and allegedly only being offered to select customers. The bags have been in circulation since 1984 and with the lawsuit, sparked online debate on retail exclusivity by luxury brands.

The lawsuit alleged that Hermès employs a strategy requiring customers to purchase multiple other products from the company to be considered for a chance to buy a Birkin bag. This tactic is said to enhance Hermès’ market power, driving up the price of Birkin bags and increasing the company’s profits.

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According to the lawsuit, to qualify for purchasing a Birkin bag, customers allegedly need to buy additional items like shoes, scarves, belts, and jewelry. This builds a “purchase profile” with the company. The brand’s sales associates earn a commission from each product sale and are more likely to offer a Birkin bag to customers with a strong purchase history.

The lawsuit also alleges that Birkin bags can only be bought in stores and are not available for online purchase. They are also reportedly kept out of plain sight, accessible only to select customers who are shown the exclusive bags in private rooms.

The lawsuit stated that most consumers are never shown Birkin bags at Hermès retail stores unless deemed “worthy” by the company. Additionally, customers cannot custom-order Birkin bags to their preferences regarding style, size, color, and leather type.

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The plaintiffs sought “compensatory and punitive damages”, along with injunctive relief. They accused Hermès of “breaching” antitrust laws by tying Birkin bag purchases to the acquisition of other luxury items, thereby impeding access to the sought-after handbags and inflating their prices.

The plaintiffs are demanding monetary damages and a court order restraining Hermès from continuing the alleged unlawful practices. For that reason, the lawsuit is aimed to attain class-action status.
Meanwhile, Hermès has yet to respond to accusations.