Luxury Retailer Hermes Faces Lawsuit Over Birkin Bag Sales Tactics

A new lawsuit has been filed against the renowned luxury retailer Hermes, focusing on its exclusive sales tactics for the coveted Birkin handbags. The lawsuit, initiated in California and specifically in San Francisco, alleges that Hermes is engaging in antitrust violations by restricting the sale of Birkin bags to customers with significant purchase histories.

Birkin handbags, known for their artisanal craftsmanship in , have become a status symbol, often seen adorning the arms of celebrities like Jennifer Lopez, Kim Kardashian, and Cardi B. These sought-after handbags come with hefty price tags, with some fetching hundreds of thousands of dollars in the secondary market.

The lawsuit claims that acquiring a Birkin from a Hermes store is not a straightforward process. Instead, customers deemed eligible are ushered into private rooms to view the coveted bags. Sales associates at Hermes reportedly play a crucial role in determining which customers may purchase Birkin bags based on their purchase history with the brand.

According to the legal filing, Hermes directs its sales associates to offer Birkin handbags exclusively to customers with established purchase histories or profiles with the brand, primarily through the acquisition of ancillary products such as shoes, scarves, belts, jewelry, and home goods.

Although sales associates do not earn commissions on Birkin bag sales, the lawsuit alleges that they are incentivized to push customers towards purchasing other items by using Birkin bags as a leverage point. Sales associates reportedly receive a 3% commission on sales of ancillary products, leading to an alleged coercive sales tactic.

In response to the lawsuit, Hermes has not yet provided a public comment. The lawsuit seeks class action status for U.S. residents who, over the past four years, have been either asked to or purchased ancillary products to qualify for buying a Birkin bag from Hermes.

The plaintiffs are pursuing unspecified monetary damages and are seeking a court order to address the alleged selling tactics employed by Hermes with regard to Birkin handbags.