French luxury design house Hermès has been accused of “tying” the purchase of its famed Birkin bags to other Hermès products in a class action lawsuit filed by two Americans in California.
According to Independent UK, the two shoppers Tina Cavalleri and Mark Glinoga in a lawsuit filed on Tuesday in San Francisco claimed that they were required to purchase “ancillary products” such as shoes, scarves, belts, or jewellery from Hermès retail store before they were allowed to purchase a Birkin handbag.
They also accused Hermès of violating antitrust law by “tying” the sale of one item to the purchase of another and exploiting their market power.
The lawsuit claimed that Hermès sales associates only offer Birkin handbags to customers who have established a sufficient “purchase history” with the French brand.
According to the filing, once shoppers “are deemed worthy” of purchasing a Birkin handbag, they will be shown the coveted item – which is allegedly not placed on display or available for purchase on the website – in a private room separate from the retail store.
“Birkin handbags are never publicly displayed for sale at Hermès retail stores.
“Indeed, it is often the case that there are no Birkin handbags at all at Hermès retail stores or, if there are, there are only one, two or at most three Birkin handbags,” their attorneys claimed in the lawsuit.
“But even if there are Birkin handbags at a particular Hermès retail store, the handbags will not be displayed on the sales floor for the general public. In fact, most consumers will never be shown a Birkin handbag at Hermès retail store.”
The lawsuit alleged that Hermès’ practice of “tying” the purchase of a Birkin bag to the purchase of other luxury clothing or accessory items violates US antitrust laws. The luxury retailer has also been accused of implementing “a scheme” to exploit its market power and increase the price of Birkin bags.
Attorneys pointed to the company’s commission structure for sales associates as driving the alleged scheme. Hermès retail employees receive “no commission” on the sale of Birkin bags, according to the lawsuit, but are paid three per cent on clothing or accessory items.
“Although Hermès sales associates receive no commission on the most valuable and sought-after products sold by their employer, they are instructed by [Hermès] to use Birkin handbags as a way to coerce consumers to purchase ancillary products… in order to build up the purchase history required to be offered a Birkin handbag,” the filing reads.
“In this way, [Hermès is] able to use their sales associates to implement [Hermès’] illegal tying arrangement.”
One of the plaintiffs, Tina Cavalleri, claimed that she had been “coerced” into spending “tens of thousands of dollars” at Hermès to “obtain access” to a Birkin bag. When she contacted Hermès in 2022 about purchasing the luxury bag, she was allegedly told that the Birkin bag is only available to “clients who have been consistent in supporting our business”.
Meanwhile, plaintiff Mark Glinoga had made multiple attempts to purchase a Birkin bag last year but was told on each occasion he needed to purchase other items and accessories.
The plaintiffs are seeking an unspecified amount in damages and a court order barring Hermès’ allegedly anticompetitive practices.
Fashion lovers have long bemoaned the difficulties of scoring a Hermès Birkin bag, which ranges anywhere from $10,000 to over $50,000 – with some exclusive prices selling for more than $300,000 at auction.
However, Hermès previously denied accusations of “tying” practices to the Business of Fashion last year. “Hermès strictly prohibits any sales of certain products as a condition to the purchase of others,” the company said.
