Hermes Faces Class Action Lawsuit for Restricting Sale of Birkin Bags

👜Hermes is facing a class action lawsuit for allegedly restricting the sale of Birkin bags based on customer status.

💰Birkin bags are highly exclusive and expensive, with prices starting at $30,000 or more.

🤝The lawsuit alleges that Hermes engages in tying arrangements by making the purchase of other products a requirement to buy Birkin bags.

✅Hermes may need to prove its market power in the luxury handbag market for the class action to succeed.

🔒Other luxury brands, such as Rolex and Louis Vuitton, also have similar purchasing restrictions for certain products.

What is the class action lawsuit against Hermes about?

—The class action lawsuit alleges that Hermes restricts the sale of Birkin bags based on customer status, potentially engaging in illegal tying arrangements.

How much do Birkin bags cost?

—Birkin bags have high price tags, with prices starting at $30,000 or more.

What are tying arrangements?

—Tying arrangements refer to the practice of tying the sale of one product to the purchase of another product, potentially leveraging market power.

Do other luxury brands have similar restrictions on purchasing?

—Yes, other luxury brands like Rolex and Louis Vuitton have similar restrictions on purchasing certain products.

What does Hermes need to prove for the class action to succeed?

—Hermes may need to prove its market power in the luxury handbag market for the class action to succeed.

00:00Luxury retailer Hermes is facing a class action lawsuit in California.

00:09Hermes uses a wishlist model for acquiring Birkin bags, which are difficult to find.

01:01The lawsuit claims that Hermes restricts the sale of Birkin bags based on customer status and purchase history.

02:41Hermes may need to prove its market power in the luxury handbag market for the class action to succeed.

03:53Other luxury brands, like Rolex and Louis Vuitton, also have purchasing restrictions for certain products.