The process of acquiring a coveted Birkin bag from Hermès is anything but straightforward. So much so, that numerous TikToks and Instagram Reels have been dedicated to unraveling its intricacies. However, Hermès now finds itself entangled in a class-action lawsuit in the United States, with accusations of unfair business practices swirling around its iconic accessory.
On Tuesday, plaintiffs Tina Cavalleri and Mark Glinoga lodged an anti-trust lawsuit against Hermès in the Northern District of California. They allege that the French luxury brand unlawfully mandated them to purchase products from other categories as a prerequisite for acquiring a Birkin, thereby exploiting its dominant market position. According to The Fashion Law, the complaint outlines how Birkin bags are so exclusive that most customers are never even presented with one at a Hermès retail store. Instead, only those deemed worthy of purchasing a Birkin are granted access to view them, typically in a private setting. Additionally, The Business of Fashion highlights the company's commission structure for sales associates, suggesting that while they do not receive commissions on Birkin sales, they do for products from other categories, further implicating Hermès in the alleged scheme.
Cavalleri and Glinoga accuse Hermès of violating the Sherman Antitrust Act, which prohibits sellers from "tying" products, i.e., conditioning the sale of one product on the buyer's agreement to purchase another. They also cite the Cartwright Act, which prohibits the combination of resources by multiple parties to restrain trade or commerce or prevent market competition, according to The Fashion Law.
While the practice of brands encouraging customers to establish a purchase history before gaining access to their most exclusive offerings is not unique to Hermès and the Birkin, it is perhaps the most prominent example, particularly in the era of social media.
The plaintiffs seek injunctive relief, monetary damages, and class-action status for the case, aiming to represent other consumers who may have been affected by Hermès' alleged uniform practices, as detailed by The Fashion Law.
