The Hermès Birkin Bag Lawsuit

A controversy involving Hermès Birkin bags in California has led to serious allegations of a worldwide Hermès monopoly and a subsequent class-action lawsuit. What’s behind this legal drama?

Two California residents have filed a lawsuit against French luxury brand Hermès, alleging that the company unlawfully restricts customers by requiring a "sufficient purchase history" to buy its coveted Birkin handbags.

In the lawsuit, Tina Cavalleri and Mark Glinoga claim that Hermès is violating antitrust laws by "tying" the sale of Birkin bags to the purchase of other items, thereby exploiting their market power. The lawsuit asserts that Hermès sales associates pressure customers to buy other products, such as shoes, scarves, and jewelry, to qualify for the opportunity to purchase a Birkin bag.

Hermes Birkin bags scream luxury and exclusivity. They are the epitome of high fashion. Since day one, these bags have wowed everyone with top-notch craftsmanship and rare availability. But there's more to them than just glamour. Collectors prize the bag for its meticulous craftsmanship and chic style. However, these are not the only reasons Hermes bags are so expensive (link to the new article here). Hermès has masterfully created a strategy of exclusivity, which is now under legal scrutiny.

What makes the Hermes Birkin bag so special?

The Hermès Birkin bag is renowned for several key reasons, making it one of the most coveted luxury handbags in the world:

1. Exclusivity and Scarcity

2. Craftsmanship

3. Heritage and Brand Reputation

4. Investment Value

5. Personalization and Customization

6. Cultural Icon Status

How can you buy an Hermes Birkin?

As a highly coveted luxury item, the Birkin bag is unavailable online or over the counter at Hermès stores. According to the lawsuit, these bags are not even displayed for sale in the company’s retail locations.

The lawsuit states, “Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown one, and this happens in a private room.” It adds that while sales associates do not earn commissions on Birkin bag sales, they are instructed to use these handbags as leverage to coerce customers into buying other Hermès products such as shoes, scarves, belts, jewelry, and home goods.

What legal experts are saying about the lawsuit

Experts are skeptical about the lawsuit's validity, arguing that Hermès holds a monopoly solely over its products and doesn't broadly affect consumers. According to these experts, Hermès' inconsistent practices provide significant flexibility in distributing the Birkin bag, making it difficult to target a specific policy in the lawsuit.

“Hermès has it in the bag,” said Susan Scafidi, academic director at Fordham University’s Fashion Law Institute. She noted that Hermès does not disclose the spending required to access a Birkin, complicating the plaintiffs' efforts to identify a concrete issue with the brand's policy.

Collateral damage from the lawsuit?

This lawsuit will significantly affect the plaintiffs, future Hermès customers, and the entire fashion industry. If Hermès' business practices are deemed not to violate antitrust laws, other luxury designers might adopt similar strategies, a trend some have already started. Additionally, Birkin bags could become even more limited in availability. For those aspiring to own a Birkin in the future, it may become even more difficult for you to acquire one.