Luxury Lawsuit? Hermès Sued For Allegedly Allowing Only Customers With “Sufficient Purchase History” To Buy Birkins

Hermès faces a lawsuit in California alleging it restricts Birkin bag gross sales to solely these deemed ‘worthy’ by the corporate.

Two California residents, Tina Cavalleri and Mark Glinoga, have filed a lawsuit in opposition to the French luxurious model Hermès, asserting that the corporate unlawfully restricts prospects by permitting solely these with a “sufficient purchase history” to buy its famend Birkin purses. The lawsuit alleges that Hermès is violating antitrust legal guidelines by “tying” the sale of 1 merchandise to the acquisition of one other, thereby leveraging its market energy. In accordance with the grievance, Hermès gross sales associates compel prospects to buy extra Hermès merchandise reminiscent of sneakers, scarves, and jewellery to realize entry to the coveted Birkin baggage.

“The unique desirability, incredible demand and low supply of Birkin handbags gives [the brand] incredible market power,” the lawsuit claims. “Defendants [Hermès] implemented a scheme to exploit this market power by requiring consumers to purchase other, ancillary products from [them] before they will be given an opportunity to purchase a Birkin handbag. With this scheme [the brand was] able to effectively increase the price of Birkin handbags and, thus, the profits that Defendants earn from Birkin handbags.”

The lawsuit states that the Birkin, a preferred luxurious designer merchandise, is unavailable for buy on-line or straight from a Hermès retailer. Furthermore, the luggage are usually not even showcased on the market throughout the firm’s stores.

“Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag [in a private room],” the lawsuit learn.

In accordance with the lawsuit, Cavalleri reportedly spent tens of hundreds of {dollars} on Hermès merchandise with the intention of getting access to Birkin baggage. Nonetheless, when she contacted Hermès in 2022 to inquire about buying one other Birkin bag, she was knowledgeable that these specialty baggage have been reserved for “clients who have been consistent in supporting” the model. Equally, Glinoga had plans to purchase a Birkin purse in 2023, however a gross sales affiliate suggested him to buy extra merchandise if he needed to accumulate a Birkin purse.

However, the lawsuit seeks to realize class-action standing on behalf of hundreds of U.S. customers who both purchased merchandise from Hermès or have been required to take action to qualify for buying a Birkin bag. Moreover, Cavalleri and Glinoga are pursuing unspecified financial damages and a court docket injunction to ban Hermès from partaking in what they allege to be anti-competitive practices.