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French luxury fashion house Hermès is facing legal action over accusations of implementing unfair exclusivity tactics in the sale of its iconic Birkin handbags.

The company has been sued in California, United States (US), with plaintiffs claiming that Hermès restricts the sale of Birkin bags to customers with a significant purchase history with the brand, thereby violating antitrust laws.

Hermès Faces Allegations of Coercive Sales Tactics

The proposed federal class-action lawsuit, filed in San Francisco, alleges that Hermès engages in unlawful tying practices, linking the sale of Birkin bags to the purchase of other high-end products.

According to the plaintiffs, Hermès sales associates pressure customers into buying additional items such as shoes, scarves, and jewelry in order to gain access to purchasing a Birkin.

Hermès has not yet responded to requests for comment regarding the allegations.

The lawsuit highlights the Birkin handbag's status as a coveted fashion item and asserts that Hermès deliberately limits access to these bags, which can cost thousands of dollars each.

Customers are reportedly only shown Birkin bags in private rooms if they meet certain criteria, including a sufficient purchase history with the brand.

Furthermore, the complaint alleges that Hermès sales associates do not earn commissions on Birkin bag sales but are incentivized to promote the purchase of ancillary products. This, the plaintiffs argue, constitutes a coercive tactic aimed at driving additional sales.

Lawsuit Aims for Class-Action Status Representing US Buyers

The lawsuit seeks class-action status on behalf of thousands of US consumers who have purchased Hermès goods or were asked to do so in order to buy a Birkin.

Hermès boasts a total of 43 stores across the United States. California leads in Hermès locations, with nine stores, constituting approximately 21% of all Hermès outlets in the country.

Plaintiffs are requesting unspecified monetary damages and a court order to prohibit Hermès from continuing these alleged anticompetitive practices.

Hermès has previously denied accusations of requiring customers to purchase other goods before being offered a Birkin. However, the plaintiffs assert that the company's actions contribute to increased prices for Birkin bags and limit consumer choice.