Hermès, the prestigious French luxury house, has long been renowned for its elusive sales strategies, particularly concerning its coveted Birkin handbag. The bag’s scarcity has elevated it to a symbol of status among the wealthy. However, this tactic has now sparked a legal dispute initiated by consumers in California.
The lawsuit alleges that Hermès engages in discriminatory practices by limiting the sale of Birkin bags to customers with an extensive purchase history, a practice deemed unlawful under antitrust regulations through what is known as “tying.” Filed as a proposed class-action complaint in San Francisco, the lawsuit claims that Hermès obliges customers to buy additional items from its luxury lineup to gain access to Birkin bags.
Named after the late actress Jane Birkin, these sought-after bags command prices well over $100,000 and are exclusively available at Hermès retail outlets. While sales associates earn commissions on various Hermès products, they do not receive any for Birkin bags. The lawsuit argues that Hermès’ compensation structure for sales associates incentivizes them to enforce the company’s sales tactics.
According to the complaint, one plaintiff, despite having spent a significant amount at Hermès, felt pressured to purchase ancillary products to secure a Birkin bag but was still unsuccessful. Another plaintiff made multiple unsuccessful attempts to buy a Birkin bag, being informed each time that additional purchases were necessary.
Hermès has yet to respond to requests for comment on the matter.
The complaint underscores that Hermès wields substantial market power due to the exceptional demand and limited supply of Birkin handbags, a situation cautioned against by the Federal Trade Commission as potentially leading to antitrust violations.
The plaintiffs seek class-action status, unspecified damages, and an injunction against Hermès’ alleged unfair practices.
While some on social media have dismissed the issue as a problem exclusive to the affluent, others have humorously referenced cultural portrayals of the Birkin bag, such as a scene from “Sex and the City,” to comment on the lawsuit’s implications.