LOS ANGELES, California – A lawsuit has been filed against French luxury brand Hermès International by two Californians who claim that the company engages in unlawful sales practices and violates antitrust laws. The plaintiffs, Tina Cavalleri and Mark Glinoga, allege that Hermès forces customers to purchase other products in order to gain access to the highly coveted Birkin bag, which can cost tens of thousands of dollars.
The Birkin bag, introduced in 1984, has gained a reputation as the most sought-after handbag in the world. It is considered an investment piece and has retained its allure despite changing fashion trends. According to the lawsuit, the high demand and limited supply of Birkin bags give Hermès market power, which it exploits by requiring customers to buy additional items before being offered a Birkin. This practice allows Hermès to increase the price of the bag and generate additional profits.
The lawsuit alleges that Hermès sales associates are instructed to only offer Birkin bags to customers who have a longstanding relationship with the brand and have purchased other products such as shoes, scarves, and jewelry. This exclusivity has led to frustration among those who are unable to access the coveted bag.
Both Cavalleri and Glinoga have a history of shopping at Hermès boutiques. Cavalleri claims to have spent “tens of thousands of dollars” on ancillary products before finally obtaining a Birkin bag. However, when she inquired about purchasing another bag in September 2022, she was informed that Birkins were only available to “clients who have been consistent in supporting our business.” The lawsuit does not specify whether she eventually purchased another bag or how many Birkin bags she currently owns.
Hermès has not responded to a request for comment regarding the lawsuit. The case is seeking class action status, and if successful, it could have implications for luxury brands that have similar practices of offering coveted items to loyal customers.
Industry experts are divided on the merits of the case. Some argue that Hermès has a monopoly over its own product and therefore its practices do not impact consumers at large. Additionally, the brand’s inconsistent distribution methods make it difficult to challenge their policy. Nevertheless, the lawsuit has drawn attention to the issue of exclusivity in the luxury fashion market, and its outcome could have implications for other brands that employ similar strategies.
Robert Freund, a lawyer experienced in consumer class actions, believes that the lawsuit could have broader implications for consumers. He questions the legality and fairness of tying the purchase of one item to another, likening it to a fast-food restaurant requiring customers to buy a meal in order to purchase a dessert. While class actions often begin with a limited group of plaintiffs, Freund emphasizes the importance of following this case as it unfolds, as its outcome could impact consumers beyond those interested in purchasing a Birkin bag.
The lawsuit highlights the complex dynamics at play in the luxury fashion industry, where brands often encourage customers to purchase multiple items in order to gain access to highly desired products. As the case against Hermès unfolds, all eyes will be on the outcome, as it could potentially shape the future practices of luxury brands and offer new protections for consumers.