Hermes sued over Birkin bag sales
Live MintFrench luxury house Hermes has been sued in California over claims it unlawfully allows only customers with "sufficient purchase history" with the company to buy its famed Birkin handbags. Hermes is violating antitrust law by “tying” the sale of one item to the purchase of another, two California residents alleged in the proposed federal class-action lawsuit filed on Tuesday in San Francisco. The lawsuit calls the Birkin handbags, long seen as a status symbol, an “icon of fashion.” Consumers cannot purchase a Birkin online from Hermes, and the leather bags, which are handcrafted and can cost thousands of dollars each, are not displayed for sale in the company’s retail stores, according to the lawsuit. Hermes sales associates do not earn commissions on Birkin bag sales and are instructed to use the handbags "as a way to coerce consumers to purchase ancillary products," according to the complaint.