Luxury designer Hermès has been hit with a class action lawsuit, with plaintiffs claiming they were forced to spend thousands of dollars on other goods like scarves and home goods before they could buy a coveted Birkin.
Two California plaintiffs filed suit against the retailer on Tuesday after being urged to “support the company” by purchasing additional products including shoes, scarves, belts, jewelry and home goods.
Chasing a Birkin is a tough task. Due to the high demand and painstaking effort required to produce the leather handbags, they are difficult to produce and expensive to purchase.
The bags are cherished by celebrities like Kylie Jenner, whose closet is full of Birkins and similar Hermes bags called Kellys. And while the wallets start around $10,000, that figure can easily reach into the hundreds of thousands, especially on the resale market.
Plaintiffs Tina Cavalleri and Mark Glinoga have sued the Paris-based retailer in the Northern District of California and proposed a class action lawsuit after having to go through a similar process in pursuit of a Birkin.
Hermès is facing a class action lawsuit filed by two California residents who claim they were encouraged to purchase “complementary products” such as home goods and shoes before being allowed to purchase a Birkin bag
The coveted handbags can start at $10,000 but can cost hundreds of thousands of euros, especially on the resale market, and for exotic skins like the one shown here
They have become a status symbol for celebrities like Kylie Jenner, whose closet is full of Birkins and their sister bag, the Kelly.
Both claimants were told to spend on ‘by-products’, described as accessories, jewelery and household items, to secure the coveted bag.
Around September 2022, Cavalleri contacted the retailer about purchasing another specialty bag, but was told they were going to “customers who have consistently supported our business,” the complaint alleges.
Cavalleri “understood that she would have to spend more on additional products to access another Birkin handbag,” and therefore was unable to purchase one.
In 2023, Glinoga attempted to purchase his own product but was “advised” by sales associates to purchase additional products to potentially obtain a Birkin, the lawsuit alleges.
“Plaintiff Glinoga made multiple attempts to purchase a Birkin bag, but was each time told to purchase other items and accessories,” court documents allege.
Glinoga has previously joined other class action lawsuits against Uber, T-Mobile and Robinhood.
Defendants in Tuesday’s lawsuit include Paris-based Hermès International; Hermès of Paris, Inc., the sole authorized distributor of Birkins in the United States; and ten unnamed individuals associated with the brand.
The luxury label is accused of engaging in a ‘tying’ scheme in which consumers are urged by sales associates to purchase additional products.
Plaintiffs Tina Cavalleri and Mark Glinoga claim they were unable to buy a Birkin after being ‘advised’ by sales associates to spend more on other products
Household items and accessories themselves can cost thousands of dollars. Pictured: left, a saddle box that retails for $4,800; right, a lantern that retails for $25,000
Other options include a desk lamp for $13,100 (left) and a scarf for $3,875 (right)
Birkin bags can only be purchased by physically going to an Hermès store. “However, unlike most consumer products – and most other products sold by Defendants – consumers cannot simply walk into an Hermès store, select the Birkin handbag they want, and purchase it,” the complaint states.
It claims that ‘most consumers will never see a Birkin handbag in an Hermès store’, only ‘those customers deemed worthy’, who are then led to a ‘private room’.
The lawsuit also notes that sales associates are paid 3 percent on these items and a 1.5 percent commission on non-Birkin handbags, but receive no commission on sales of Birkin handbags.
“These sales associates are instructed by Defendants to only offer Birkin handbags to consumers who have a sufficient ‘purchase history’ or ‘purchase profile,’” the complaint alleges.
“Defendants designed the sales associate compensation structure to ensure that sales associates follow Defendants’ policy of only selling Birkin handbags to consumers who have sufficient purchase history of additional products.”
The lawsuit further accuses Hermès of using the scheme to “effectively increase the price of Birkin handbags and therefore the profits Defendants earn from Birkin handbags.”
While the class action was filed in California, it is seeking other potential litigants across the country.
Plaintiffs’ legal counsel accuses Hermès of violating antitrust rules, including the Sherman Act, Cartwright Act and California Unfair Competition Law.
The plaintiffs are seeking an unspecified amount of compensatory and punitive damages, to be determined at trial.
Hanushka Toni, co-founder of luxury consignment store Sellier Knightsbridge, conducted an experiment where she tried to buy a Birkin bag on the spot at the Madison Avenue location
She was rejected on one attempt. But on another attempt, after saying she was visiting from London, she was told ‘no appointment was necessary’ and given champagne and macarons before finally ending up with a bag.
Hermès has drawn the ire of consumers due to inconsistent sales practices.
Hanushka Toni, co-founder of luxury consignment store Sellier Knightsbridge, conducted an experiment where she tried to buy the expensive bags on the spot.
Toni said she was visiting from London, where sales associates are not known to require guests to spend money upfront on accessories and other goods before purchasing a Birkin.
With a Kelly bag slung over her shoulder, she entered the Hermès store on Madison Avenue at least twice.
When he told a salesperson she was interested in buying a Birkin, the man fired back, “I’m sorry, ma’am, that’s impossible.”
On a subsequent attempt, the reaction was very different. While it’s unclear if that contributed to her eventual success, she received a very different response than her other attempt.
‘No problem! No appointment necessary!’ the man said before ordering her to go to the concierge, where she was given champagne and macarons and eventually given a bag.
Consumers and fashion blogs have been whispering about the brand’s unfair policies for years, which Hermes has vehemently denied.
IFollowing a statement to Business of Fashion last year, a spokesperson claimed: ‘Hermès strictly prohibits the sale of certain products as a condition of the purchase of others.”
However, CEO Axel Dumas has acknowledged that stores are being encouraged to “research” buyers as the company tries to stunt the growth of the resale market.
Hermès is not the only brand linked to such practices.
Dealers of watchmaker Rolex have been accused of requiring customers to buy from sister brand Tudor before they can buy Rolex products.