Hermès Faces Lawsuit Over Birkin Sales Practices
French luxury retailer Hermès is facing a lawsuit over claims that it is violating antitrust law by only allowing customers with “sufficient purchase history” with the company to buy their infamous Birkin bags.
Customers pressured into purchasing other items to gain access to Birkins
Filed on Tuesday in San Francisco by two California residents, the lawsuit claims that customers are pressured into buying items such as shoes, scarves and jewellery by sales associates to be able to get the opportunity to purchase the iconic bags. Named after singer and actress Jane Birkin, the handcrafted leather bags can cost thousands of dollars, and are not available to purchase online or displayed for sale in the company stores according to the suit. Customers deemed “worthy” of the opportunity to purchase a Birkin handbag are shown them in private rooms.
The lawsuit claims that Hermès sales associates do not earn commission on the elusive handbags, and have been instructed to use them "as a way to coerce consumers to purchase ancillary products.” The lawsuit is currently seeking class action status to represent thousands of US customers who bought or were asked to buy Hermès products in order for them to gain access to the bags, and is seeking an unspecified amount of monetary damages and a court order barring the anticompetitive practice.
Hermès' history of sales practice complaints
This is not the first time Hermès has received complaints about the exclusivity of the Birkin bags. Buyers have reported for years that sales associates have become increasingly strict about only offering the bags to customers who buy large quantities of their other products. Hermès denied the practice in a statement to Business of Fashion last year, saying: “Hermès strictly prohibits any sales of certain products as a condition to the purchase of others.” However, CEO Axel Dumas has acknowledged that stores are encouraged to vet buyers so that the bags are only purchased by “real” clients in an attempt to reduce the amount of resales.
