California shoppers have filed a class-action lawsuit against Hermès, claiming the French luxury brand's Birkin bag purchasing practices are "unfair."
In the antitrust lawsuit, plaintiffs Tina Cavalleri and Mark Glinoga allege that Hermès illegally requires customers to purchase ancillary products before offering them the opportunity to purchase a Birkin bag—an illegal practice known as "tying."
Cavalleri explained that after spending "tens of thousands of dollars" at Hermès, she was told that Birkin bags were for "customers who consistently support [the brand's] business." Meanwhile, Glinoga was advised to "buy other items and accessories" after several attempts to buy a Birkin.
The lawsuit uses a "salesperson compensation structure" as evidence of the company's illegal practices, alleging that retail employees do not receive commissions on Birkin sales. Instead, sellers receive a 3% commission on ancillary items and a 1.5% commission on other bag styles.
Hermès previously denied this claim. “Hermès strictly prohibits any sale of certain products as a condition of the purchase of others,” the brand had told Business of Fashion last year.
The cost of Birkin bags starts from $10,000. Furthermore, these models are two to three times more expensive at retailers.
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