Plaintiff Tina Cavalleri, a California resident who says she has spent tens of thousands of dollars at Hermès, alleged that she and other consumers were coerced into buying ancillary products from the company by virtue of wanting to purchase the Birkin handbags, according to a proposed class action filed Tuesday in US District Court for the District of Northern California.
Birkin bags have become a symbol of wealth and can range in price from thousands of dollars to more than $100,000. Hermes has seen sales increase as consumers splurge on the pricey bags.
“The unique desirability, incredible demand and low supply of Birkin handbags gives Defendants incredible market power,” the complaint said. “Defendants implemented a scheme to exploit this market power by requiring consumers to purchase other, ancillary products from Defendants before they will be given an opportunity to purchase a Birkin handbag. With this scheme Defendants were able to effectively increase the price of Birkin handbags and, thus, the profits that Defendants earn from Birkin handbags.”
Hermes didn’t immediately respond to requests for comment. The complaint alleged that Hermes bags are never publicly displayed at retail stores; rather, Hermes sales associates are tasked with selecting consumers who are qualified to purchase Birkin handbags.
“These sales associates are directed by Defendants to only offer Birkin handbags to consumers who have established a sufficient ‘purchase history’ or ‘purchase profile’ with Defendants of Defendants’ ancillary products such as shoes, scarves, belts, jewelry and home goods,” the complaint stated.
Cavalleri alleged that she and other members of the proposed class were harmed by Hermes, saying it ran an anticompetitive scheme that violated the Sherman Antitrust Act as well as the California Cartwright Act, the state’s law prohibiting anticompetitive activity.
The plaintiff is represented by Haffner Law PC and Setareh Law Group.
The case is Cavalleri v. Hermes, N.D. Cal., No. 3:24-cv-01707, 3/19/24.
