Hermes, the luxury brand from France, is facing a big lawsuit. It’s a proposed class action lawsuit about Hermes’ popular Birkin handbags and how the company supposedly sells them to customers.
According to reports, Hermes has sold those fancy Birkin bags since the ’80s. They are made of original leather, and their price tags can go for over $10,000. While the lawsuit is yet to go to trial, here’s everything we know.
The Lawsuits Against Hermes
The lawsuit accuses Hermes of breaking some serious laws. It says Hermes violated federal antitrust law and some California antitrust and unfair competition laws. Counsel for the plaintiffs claims that Hermes violates U.S. antitrust regulations. The regulation defines certain practices of bundling goods or tying them to other purchases as an abuse of market power.
The complaint states that “the tying product, the Birkin Handbags, is separate and distinct from the tied products, the ancillary products required to be purchased by consumers.” Furthermore, the complaint noted that customers would like alternative options and to choose independently.
The complaint said, “Plaintiffs have alternative options for the ancillary products and would prefer to choose among them independently from their decision to purchase Birkin handbags.” The lawsuit says Hermes broke the law by making people buy their other fancy items if they wanted a Birkin bag.
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Two Plaintiffs Shared Their Experiences
The lawsuit asks the U.S. District Court in California to make it a class action. It also wants Hermes to stop forcing people to buy other products if they wish to buy Birkin bags. Furthermore, the plaintiffs are asking for money and other relief.
According to court documents, two people from California brought the complaint against Hermes. They said they had experiences where they had to buy other Hermes stuff if they wanted a shot at getting a Birkin bag.
The lawsuit said that Hermes used its sales associates to make this illegal deal happen. According to reports, the sales associates get commissions on the other Hermes items they sell out, so they try to sell out more than just the Birkin bags.
Plaintiffs Claimed They Are Told the Hermes Bags Go to Only Business Supporters
One of the plaintiffs, Tina Cavalleri, recounted her experience. She said she inquired about buying one of the coveted handbags from the French company in 2022. Cavalleri claimed they said specialty bags are going to “clients who have been consistent in supporting our business.”
Similarly, fellow plaintiff Mark Glinoga tried to buy a Birkin bag last year. However, she claims the defendant’s sales associates counseled her “to purchase Ancillary Products to potentially obtain a Birkin Handbag.”
The lawsuit states that “Most consumers will never see a Birkin handbag at a Hermes retail store.” However, only those deemed worthy of purchasing it are shown one (in a private room). “The chosen consumer will have the opportunity to purchase the specific Birkin handbag which they want,” the lawsuit added.
Hermes Denied Allegations In 2023
The lawsuit adds that Hermes increased the price of Birkin handbags. Furthermore, it says the brand tends to make more money from them by making people buy other items, too. On the handbag blogs and social media, people have been talking about how Hermes salespeople have been getting picky.
They reportedly only give Birkin and Kelly bags to customers who buy other items. However, in 2023, Business of Fashion reported that Hermes strictly prohibits salespeople from making customers buy other products just to get Birkin bags. The brand reportedly said, “Hermes strictly prohibits sales of certain products as a condition for the purchase of others.”
Hermes CEO Axel Dumas said the company wants its stores to ensure they sell Birkin bags to legitimate customers.
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Other Products by Hermes
Hermes is a super fancy French brand that started in 1837. It’s all about luxury and makes all sorts of amazing items, such as leather goods, accessories, home furnishings, perfumes, jewelry, watches, and even clothes you can wear.
Since the 1950s, their logo has been that of a fancy horse-drawn carriage. They’ve got quite a variety, and the brand has roots in equestrian fashion. Hermes reportedly had a market capitalization of over 252.72 billion euros.
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