Business

Hermès Faces Legal Action Over Birkin Handbag Sales

The French luxury brand Hermès is facing legal action in California over allegations that it unlawfully limits the sale of its iconic Birkin handbags to customers with a ‘sufficient purchase history’ with the company. The proposed federal class-action lawsuit, filed in San Francisco, accuses Hermès of violating antitrust law by tying the sale of Birkin handbags to the purchase of other items.

According to the lawsuit, Hermès sales associates are reportedly encouraging customers to buy additional products such as shoes, scarves, and jewelry in order to qualify for the opportunity to purchase a Birkin handbag. The lawsuit claims that the company’s sales associates do not earn commissions on Birkin bag sales and are instructed to use the handbags as a means to coerce consumers into purchasing other products.

The lawsuit highlights that consumers cannot buy a Birkin handbag online from Hermès, and these sought-after leather bags, which can cost thousands of dollars each, are not openly displayed for sale in the company’s retail stores. Allegedly, only consumers deemed ‘worthy’ are shown the Birkin handbags in private rooms.

The legal action seeks class-action status for thousands of US consumers who have either purchased Hermès goods or were prompted to buy them in order to qualify for a Birkin handbag. With approximately 43 stores in the US, including eight in California, the lawsuit is pursuing unspecified monetary damages and a court order to prohibit Hermès from engaging in allegedly anticompetitive practices.

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