Business
Hermes Lawsuit Alleges Discriminatory Birkin Bag Sales Tactics
A recent class-action lawsuit filed in San Francisco has taken aim at luxury retailer Hermes, accusing the brand of implementing discriminatory sales tactics with its highly coveted Birkin handbags. The lawsuit alleges that Hermes unlawfully restricts access to Birkin bags, known for their luxurious craftsmanship, only to customers who have spent substantial amounts on other goods at their stores.
The lawsuit focuses on Hermes’ exclusive sales strategy for Birkin handbags, which are handmade by artisans in France and can fetch prices ranging from tens of thousands to hundreds of thousands of dollars in resale markets. Celebrity icons like Jennifer Lopez, Kim Kardashian, and Cardi B are often seen flaunting these designer handbags. Unlike many other luxury items, Birkin bags are exclusively available for purchase in Hermes stores and are not sold online.
According to the lawsuit, the average customer is not permitted to simply walk into a Hermes store and buy a Birkin off the shelf. Instead, the sales associates at Hermes play a crucial role in determining which customers are deemed worthy of purchasing a Birkin. Customers are reportedly required to have an established purchase history with the brand, potentially through the acquisition of other items such as shoes, scarves, belts, jewelry, and home goods.
The lawsuit further claims that while Hermes sales associates do not receive a commission for the sale of Birkin bags, they are instructed to use the unavailability of Birkin bags as leverage to push customers into buying additional products, for which they earn a 3% commission. Hermes has yet to comment on the allegations brought forth in the lawsuit.
If the class-action lawsuit is successful, it seeks to represent all U.S. residents who, in the past four years, either bought ancillary products as a prerequisite to purchasing a Birkin bag or were denied the opportunity based on their spending history at Hermes. The plaintiffs are seeking unidentified monetary damages and a court order to halt the alleged discriminatory sales tactics used by Hermes.