Some shoppers in California are suing Hermès, claiming the Paris-based high-end retailer's long standing policy of restricting the sale of the brand's iconic Birkin Bag to repeat customers is a violation of U.S. antitrust regulations.
Birkin Bags — named for the late British actress Jane Birkin — have been considered a status symbol among the 1% for decades. The handmade luxury totes routinely retail for upwards of $11,000 and can be subject to years-long waiting lists.
In addition to the high price tag and demand, the bags can be difficult to come by for another reason - usually customers aren't allowed to buy the Birkin without first establishing a relationship with Hermès retailers. Only shoppers who established a "purchase history" with Paris-based retailer can be offered iconic bag for sale
"Most consumers will never be shown a Birkin handbag at Hermès retail store," the lawsuit filed by would-be customers Tina Cavalleri and Mark Glinoga reads. "Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag (in a private room)."
The lawsuit notes that while Hermès employees earn commission on some goods, like scarves and belts, they receive no commission whatsoever on Birkins - thus incentivizing salespeople to require a large number of ancillary purchases before selling Birkins to customers.
Glinoga and Cavalleri both claim that they had exerted substantial effort in obtaining Birkin Bags. Cavalleri says that she spends tens of thousands of dollars and was "coerced into purchasing ancillary products in order to obtain access to Hermès Birkin bags." Glinoga also says that he made "multiple attempts" to buy the tote bag, but was denied on each occasion.
Tying the sale of one product to that of another, less desirable product has been considered an antitrust violation in the past, according to the Federal Trade Commission.
"Cases turn on particular factual settings, but the general rule is that tying products raises antitrust questions when it restricts competition without providing benefits to consumers," the FTC's website reads.
Glinoga and Cavalleri are seeking restitution, damages and legal fees for themselves and all United States residents who were asked to purchase ancillary products while seeking a Birkin.
