Only qualified customers are allowed to purchase a Birkin
Hermès’ tactic violates antitrust laws
| Reuters/Yonhap News |
French luxury brand Hermès is embroiled in a legal battle in the United States over its strategy of only allowing consumers with sufficient purchase history to buy their flagship product, the Birkin bag.
According to a Bloomberg report on the 20th of this month, two California residents have filed a class-action lawsuit against Hermès in the Northern District Federal Court of California for violating antitrust laws. The plaintiffs allege that to purchase a Birkin bag, customers must also buy thousands of dollars worth of other products, which violates antitrust laws by tying the sale of one item to the purchase of another. They argue that Hermès has taken advantage of the strong market dominance created by the high demand for Birkin bags and the limited supply, which violates antitrust laws.
They pointed out that Birkin bags cannot be purchased online and are not displayed in stores. Store employees show the product exclusively to certain consumers who are eligible to buy a Birkin bag in a separate area.
Two of the plaintiffs in a lawsuit against Hermès claimed that they were forced to buy additional products to purchase the Birkin bag and ended up spending thousands of dollars. One of the plaintiffs said that Hermès told them the bags were only sold to customers who had continuously supported their business. The other plaintiff said they attempted to buy a Birkin bag multiple times but were always told that they had to buy other items and accessories. Hermès has not yet made a statement regarding the lawsuit.
The Birkin bag, a flagship product of Hermès, was inspired by British singer and actress Jane Birkin, a fashion icon. The product, which symbolizes the status of the wealthy, is sold in stores for over $100,000 and is known to sell for even higher prices on the secondhand market.
Most Commented