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    Hermès accused of breaking antitrust law by only selling Birkins to 'worthy' customers

    By John ArcadipaneMarch 20, 2024 Blog Briefing Room 2 Mins Read
    – 202403AP24057413985180
    A Bonhams employee displays a Hermes: a Bambou Swift Leather Birkin 25 bag, at the auction rooms in London, Monday, Feb. 26, 2024. The bag estimated at 12,000-18,000 UK Pounds (15,000-22,800 US Dollars) will be for auction in the live sale on Feb. 28, it will feature luxurious items of handbags and ready-to-wear designs from coveted names including Chanel, Hermes, Karl Lagerfeld for Chanel, Christian Dior, Louis Vuitton, and Gucci. (AP Photo/Kirsty Wigglesworth)
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    A California class action lawsuit accuses Hermès of violating antitrust law by only selling its famous luxury Birkin handbag to customers with a substantial purchase history of other items.

    The lawsuit, filed in federal court in San Francisco, alleges that sales associates are pressuring customers to buy Hermès’s additional products, such as scarves, jewelry, shoes, and home goods, in order to have the chance to buy the exclusive item.

    The lawsuit states that only customers considered deserving of purchasing a Birkin handbag will be shown one in a private room. The selected customer is then given the opportunity to buy the specific Birkin handbag they are shown, without the option to order a different one that may better suit their style preferences.

    Hermès encourages sales associates to capitalize on the exclusivity of the bag, described as a fashion icon, and to utilize the prospect of being chosen to drive the purchase of other merchandise.

    The lawsuit mentions that sales associates are instructed to only offer Birkin handbags to customers who have established a significant 'purchase history' or 'purchase profile' with Hermès for its additional products, such as shoes, scarves, belts, jewelry, and home goods.

    Once a consumer has a sufficient purchase history or purchase profile with Hermès, they will be offered the opportunity to buy a Birkin handbag,

    The Hill has contacted Hermès for comment.

    The class-action lawsuit, filed by two plaintiffs and seeking class-action status, alleges harm to 'thousands of members' due to similar practices. One plaintiff claimed to have spent tens of thousands of dollars at Hermès and was coerced into buying Ancillary Products to gain access to Hermès Birkin bags.

    When the plaintiff wanted to buy a second Birkin handbag, they were informed that specialty bags were going to 'clients who have been consistent in supporting our business,' according to the lawsuit.

    The second plaintiff made multiple attempts to purchase a Birkin handbag but 'was told on each occasion he needed to purchase other items and accessories.'

    The class-action complaint asks the court to prohibit Hermès from engaging in the alleged activities. It also seeks an unspecified amount of monetary damages and restitution to be awarded.

    Antitrust law Hermes
    John Arcadipane

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