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What lawsuit is Hermes facing? Exploring amid US legal battle over alleged refusal to sell Birkin Bag
Hermès, the luxury fashion giant, is under fire in US legal battle over sales policy for iconic Birkin handbags. Allegations have emerged that the French brand discriminates against potential buyers.
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Hermès embroiled in US legal battle over alleged refusal to sell Birkin bags
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Lawsuit accuses Hermès of discriminatory sales practices, demanding purchases of ancillary products
Hermès is embroiled in a lawsuit in California, highlighting the exclusivity and allure of luxury fashion. The lawsuit, filed by eager shoppers, alleges that the French luxury brand engages in discriminatory sales practices related to its iconic Birkin handbags, as per Reuters.
The allegations
The lawsuit accuses Hermès of imposing stringent conditions on potential Birkin buyers, effectively denying them access unless they meet certain criteria. Plaintiffs claim that in order to obtain the desired handbag, customers are coerced into first purchasing other luxury items such as scarves, shoes, and belts.
Tina Cavalleri, one of the plaintiffs, describes her experience inquiring about purchasing a Birkin in 2022. She was reportedly told that the bags were only for "clients who have been consistent in supporting our business." Another plaintiff, Mark Glinoga, claims that Hermès salespeople advised him to purchase ancillary items before being considered for a Birkin purchase.
The Birkin mystique
The Birkin handbag, named after the actress Jane Birkin, represents opulence and exclusivity in the fashion world. With prices ranging from USD 10,000 to more than USD 1 million, these handmade leather purses have developed a cult following among celebrities and fashion enthusiasts alike. 
Despite their popularity, Birkin bags are not prominently displayed in Hermès stores and cannot be purchased online. The lawsuit claims that only select customers, deemed worthy by the brand, are allowed to purchase a Birkin, often through private consultations.
Antitrust allegations
The lawsuit alleges that Hermès' sales practices violate US antitrust laws by artificially inflating a product's effective cost and limiting consumer choice. Plaintiffs argue that the brand's alleged tying of Birkin sales to other purchases is anti-competitive behavior.
Furthermore, the Hermès sales associates' compensation structure is called into question. While associates reportedly do not receive a commission on Birkin sales, they do earn a commission on the sale of ancillary products, incentivizing them to encourage additional purchases.
Hermès' response
Hermès vehemently denies the allegations, claiming that it strictly prohibits tying the sale of one product to another. CEO Axel Dumas has previously emphasized the brand's commitment to serving "real" customers and ensuring fair distribution of sought-after handbags.
However, the lawsuit highlights a growing concern about luxury brands' sales practices, particularly in light of efforts to curb the burgeoning luxury resale market. As consumers seek transparency and fairness in their pursuit of desired fashion items, the outcome of this legal battle could have far-reaching consequences for the luxury industry.
Also read: What is Temu? Here's all you need to know about the online shopping revolution
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