
Hermès, the French luxury brand, is currently the subject of a class-action lawsuit in the United States. The lawsuit accuses Hermès of engaging in unfair business practices related to the sale of their highly sought-after Birkin bags. This is on the heels of varioous social media posts, attempting to explain the complex and opaque process of purchasing a Birkin bag.
Two plaintiffs, Tina Cavalleri and Mark Glinoga, have filed an antitrust lawsuit against the luxury brand Hermès in the Northern District of California. They claim that Hermès forces customers to buy other products before allowing them to purchase the highly sought-after Birkin bag, thereby misusing their market power. According to The Fashion Law, the suit reveals how most customers will never even see a Birkin in store, as only select individuals deemed worthy by Hermès are shown the exclusive bags in private. Additionally, The Business of Fashion reports that the lawsuit also targets Hermès’ sales commission structure, which incentivizes associates to sell other products over Birkins – further contributing to the alleged anticompetitive sales tactics.
Cavalleri and Glinoga have filed accusations against Hermès, claiming that the company has breached antitrust laws. Specifically, they allege Hermès has broken the Sherman Antitrust Act by engaging in “tying” sales practices—forcing customers to buy certain products in order to purchase others. They also claim Hermès has violated the Cartwright Act by conspiring to hinder trade competition.
Brands, including Hermès with the Birkin bag, often require customers to build a purchase history before they can buy their most exclusive items. This strategy is well-known, especially on social media, and is also seen in the luxury watch industry.
Plaintiffs are seeking a court injunction, financial compensation, and class-action status for their case against Hermès, arguing that other consumers have been similarly impacted by Hermès’s alleged uniform practices that caused injury, according to The Fashion Law. Stay tuned to see how this plays out. Do you think there’s any truth to the complaint? We shall see. Bougie On A Budget, 951.691.2704