Hermes is facing a new lawsuit alleging that the luxury retailer engages in discriminatory practices when selling its highly sought-after Birkin handbags. The lawsuit, filed in San Francisco, claims that Hermes violates antitrust laws by requiring customers to make significant purchases of other goods before being allowed to purchase a Birkin bag.
Birkin handbags, known for their exquisite craftsmanship and high price tags, are a status symbol often seen on the arms of celebrities like Jennifer Lopez, Kim Kardashian, and Cardi B. These handbags, which can cost tens of thousands of dollars and even more on the resale market, are exclusively available for purchase in Hermes stores.
According to the lawsuit, customers cannot simply walk into a Hermes store and buy a Birkin off the shelf. Instead, sales associates are said to select customers based on their purchase history or profile with the brand, including buying other Hermes products like shoes, scarves, belts, jewelry, and home goods.
The lawsuit alleges that sales associates are instructed to use the allure of Birkin handbags to entice customers into purchasing additional items, for which they receive a commission. While the sales associates do not earn a commission on Birkin sales, they reportedly receive a 3% commission on other products sold.
The lawsuit seeks class action status for all U.S. residents who, in the past four years, were required to buy ancillary products in order to be eligible to purchase a Birkin. The plaintiffs are seeking monetary damages and a court order to stop what they claim are coercive selling tactics employed by Hermes.
As of now, Hermes has not responded to requests for comment regarding the lawsuit. The case highlights the ongoing debate over the exclusivity and elitism surrounding luxury brands and their coveted products.
