Montre Hermes Arceau Chrono en acier Ref lawsuit alleging that Hermès’ sales practices run afoul of U.S. Antitrust law was filed in the Northern District of California.
Two state residents, Tina Cavalleri and Mark Glinoga, are the listed Plaintiffs for a proposed class-action lawsuit in which they claim that what we here refer to colloquially as “pre-sale” Zaino Hermes in tela e pelle arancione e rossa.
Specifically, the lawsuit states that each Plaintiff has attempted on multiple occasions to purchase a Birkin1, and on each such occasion that they requested to make such a purchase, they were denied by a Sales Associate and were directed to purchase other items so as to build up a purchase history sufficient to be approved for one.
While various other news reports of this lawsuit sound somewhat compelling, we at Erlebniswelt-fliegenfischenShops took a look at the filed Complaint and were less than impressed.
Details of the Complaint
A cursory reading of the filing (which has numerous typographical errors including – embarrassingly – misspelling “Birkin” more than once) makes clear that the Plaintiffs are represented by counsel who seem to know little about the luxury handbag market or the luxury retail business practices we regularly discuss here and on PurseForum.
They seem to know even less about Hermès, especially the retail effect of podium and their product availability in general. The factual allegations on which the complaint is based seem to have numerous errors, including:
- La valorización de los bolsos Hermes Herbag de segunda mano Its a Hermes Herbag directly to clients on its website (paragraphs 19 and 27). Of course, the Hermès website sells only a fraction of the items in production online and leaves out some métiers2 entirely; this is common not just with Hermès but with other Luxury Houses such as Chanel or Louis Vuitton;
- They claim that Hermès has “expended case of dollars in the United States advertising the Birkin handbag”3 and as a direct result, they have sold “thousands” of them (24);
- They allege that Hermès has been able to increase the price of the Birkin because it requires clients to buy other items before they can buy one (26), which fails to acknowledge both Hermès’ consistent price increases over the last 25 to 30 years, and the proportionally-equal-or-even-greater price increases among the other Luxury Houses, most notably Chanel handbags;
- They seem to imply that the Birkin is the only product that is toupe to be found in a retail store unless the client is “deemed worthy of purchasing” one (27). However, it has become difficult to find any handbag at all for sale on the Hermès website, and in the boutique, it is not just the Birkin but many other popular, in-demand items;4
- Зимние ботинки hermes Special Order process, instead stating that a Birkin can toupe be ordered and that “[f]or all practical purposes, there is no way to order a bag in the style, size, color, leather and hardware that a consumer wants” (27). Of course, due to scarcity, this has become increasingly rarer; however, our PurseForum boards have regular posts of new or newer clients being offered Birkins and Kellys beyond the appointment system at FSH;
- Plaintiffs allege that the fact that Sales Associates receive no commission on Birkins is proof of corporate pressure to push clients to purchase other commissioned items (29).
Breaking Down the Allegations
In the Complaint, Plaintiff Cavalleri alleges that she spent “tens of thousands of dollars” and was forced to purchase other items (“Ancillary Products”) to be offered a Birkin. This was after she inquired about purchasing one in September 2022 and was told that the bags were being offered to “clients who have been more consistent in supporting our business.” (31)
As a result, Plaintiff “was unable to purchase another Birkin handbag in September 2022” [emphasis added].5 Plaintiff Glinoga alleged that he made several attempts to purchase a Birkin in 2023 but was told to purchase other items, and therefore, he did not purchase a Birkin.6
Plaintiffs allege that Hermès’ actions through its Sales Associates violate various federal and state laws.7 It proffers that only allowing clients with a sufficient purchase history to be offered a Birkin constitutes the practice of tying, which is defined as “selling one good (the tying product) on the condition that the buyer also purchases another, separate good (the tied product).”
hermes herbag bag worn on the shoulder or carried in the hand in black canvas and black leather.8 The lawsuit also claims that Hermès has a monopoly – over Birkins – which it uses to both charge higher prices and sell its other products and that the sale of those other products restrains its competitors for those other (non-Birkin) products.
Where Do We Go From Here?
Шикарная сумка hermes lindy 30 с золотой фурнитурой новая monopolies nor tying is always illegal and that there are legitimate reasons for each. Hermès cannot be forced to increase production to satisfy the market, and it’s hard to grasp when claiming that Hermès has a monopoly on Birkins, just who the restrained competition is.
Further, the alleged tying is very open-ended; in most cases, the tied item is something specific. Hermès can’t be restraining its market competitors for every single non-Birkin item it produces, because it produces so many items.
While this case is clearly a fashion-headline grabber, there are a number of market realities that the Plaintiffs will have to overcome, including increased product scarcity (due to exponential growth in product popularity), consistent history of price increases, what constitutes an illegal monopoly and valid retail issues Hermès is trying to avoid, including selling to resellers and/or counterfeiters.
- It should be noted here that when Plaintiffs use the term “Birkin,” they mean both the Birkin and the Kelly. ↩︎
- hermes kelly depeches briefcase in black box leather. ↩︎
- Borsa a tracolla Hermes Evelyne modello grande in pelle taurillon clemence rossa? ↩︎
- This includes the various Kellys – some of which, like the Mini Kelly, are even Hermes hermès vintage feux d artifice than the Birkin – as well as the Constance, Mini Lindy, TPM Evelyne, as well as other in-demand bags. Further, we know that this applies to far more than handbags, as anyone trying to purchase, say, a PM Rodeo Pegase or a Mini Bearn will attest. ↩︎
- This leaves one with a number of questions about Plaintiff’s relationship with Hermès and purchase history. ↩︎
- Again, this leaves one with a few questions about Plaintiff’s purchase history. ↩︎
- The Sherman Act (15 U.S.C. §2), the Cartwright Act (Bus. & Prof. Code, §16720 and 16727), and, as a result, California’s Unfair Competition Law (Bus. & Prof. Code §§17200 et seq.). ↩︎
- ” The antitrust concern over tying arrangements is limited to those situations in which the seller can exploit its power in the market for the tying product to force buyers to purchase the tied product when they otherwise would not.” hermes herbag bag worn on the shoulder or carried in the hand in black canvas and black leather., 2009 U.S. Dist. LEXIS 82069 (D.N.J. Sept. 8, 2009)” ↩︎
I didn’t know that Purse Blog was in the business of being the defenders of Hermès. As a member of the California bar, I find this lawsuit amusing and mildly embarrassing for the lawyer and the clients. I’ll be following it and it will be quite interesting to see what happens. And yes it is embarrassing to have typos; please remember that when editing future articles.
I totally agree. This is a very biased article toward a company that has very inappropriate practices. I was in the Hermes boutique this past wknd and they said that there are so many myths around buying Hermes bags but then when I explained that I wanted to purchase a Kelly, he said there is a wish list and then he proceeded to insist (multiple times) that I should look at the home section or shoe section and make a purchase. I refuse to do that because i just purchased several pairs of Hermes shoes online. Seriously it is insane that we are willing to give $15,000 to Hermes and we still get the run around. Ugh.
i do hope one pair was the ILona 90 Sandel. I just LOVE them!
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S/he’s an attorney. Are you, dear?
Really cringe post. Why are you defending a brand that does require people to play games and spend tons of extra money in order to get the actual item that they want? Yes it’s embarrassing that there are typos and misunderstandings in the lawsuit, but rising up and trying to make change is commendable.
Yassssss
Anyone still wasting their money on Hermès bags has no sense of style, believes it will make them part of the “club,” and has no sense of what true luxury actual is. Hermès is just a big marketing hoax.
Agreed. Hermès is really good at one thing: making people spend insane amounts of money on goods that should sell for a tenth of the price. Genius business model. They are absolutely right to take advantage of nitwits handing over their money!
Despite everything, there is truth to the fact that one has to build up a history of purchasing other items in order to be offered the chance to purchase a Birkin or Kelly. When I asked my SA what Hermes rules were, to buy a Birkin, she said Hermes “wants people to support the brand and buy other products”. Additionally, they require, again according to my SA, that every year new purchases need to be made to be offered a specific bag. The crux of the lawsuit is about buying things you don’t necessarily want before being offered a bag. What other fashion house does this?
I was thinking the same thing. The ability to purchase a bag is a murky process. If you tell me it’s a 2:1 spend at least I know and can proceed.
If only it was a 2:1 spend, but it’s not. I also believe the rules are different for different clientele. For example, Victoria Beckham has, at last count, a 2 million dollar Birkin bag collection. Did these rules apply to her?
Are you seriously holding a collection that has been almost 3 decades in the making to rules that have sort of being in place for less than 1?
Victoria started in the “wait list” era when the bag was less popular than today and being a celebrity did carry some wait in the system that then morphed into the “whish list” and “pre-sale” of today.
Also, are those 2 million based on the in store prices of the bag when they were released (again we’re talking about almost 3 decades of price increases) or on current resale prices? Are even all of her bags directly from the store or does she do resale?
Hermes bags have become unattractive to me after the karshitians started carrying them – then games seem juvenile – perhaps you should post the article how wealthy women prefer to wear dupes rather than play the game – I feel sorry for the YouTubers who buy junky blankets and plates and clothes too secure a stuffy bag in an ugly color
Agree. Can’t stand the kartrashians. Plus, some of those bags weigh a short tonne and drag on people’s bodies, especially if you have a petite frame. Sometime wonder if the heavier leather Birkins were produced in kahootz with chiropractors!
Hermes Trim handbag in khaki canvas and white leather
Exactly.
Amen.
Wow purse blog. Embarrassing. This feels like it was written my a Mean Girl who is now working in purse blog. Very very bias. I’m glad someone is taking their time to sue Hermes because I’ve personally experienced the Hermes game in store and it’s appalling. It’s giving me gaslighting, toxic boyfriend vibes. “Treat them mean keep them keen”. It’s also sad to see a blog I enjoy reading somewhat shaming people who are trying to fight back.
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You NAILED IT!! This is a pretty bad article, mean-girl-writer seems like a Hermès simp, why defend the Hermès game??!
I find this article very bias, I guess they get paid by promoting Hermes.. in my opinion, the attorneys and plaintiffs involved in the lawsuit don’t need to know about luxury retail, they just need to know about the laws and when someone is violating them.. that’s it.. Everyone knows about Hermes illegal ways to make customers to spend thousands of dollars before they become “eligible” to buy a quota bag. One of my friends that works at the Hermes stores in NJ tells her clients how much they need to spend more or less, before they can buy either a Birkin or Kelly, the sells reps are pressured into doing this. Also, everyone knows that special orders only apply to customers that had already a history with them and if they happen to have a black Amex, even better. This is just a business, an illegal and corrupt one.
Why does this matter. It is a loyalty program any other retail program like hotels. Buy/more get perks.
This!
Re. typographical errors, it is métiers, not mètiers.
Hermes Birkin 30 Hermes Bag Rich Blue Izmir Clemence Palladium Ganebet Store!
Is this article for real? Are you worried about losing Hermes connections? Poking frivolous holes on the lawsuit but no mention of the main point: Hermes DOES require purchase of other products to sell Birkins… eye roll
…Vintage Hermes Constance Black & Brown Leather H.
I live in Paris and SAs toupe ever explicitly encouraged building up a history to get a QB but once my SA said “it was good for my profile”, so same but not said directly. I was at the airport in Qatar a few months ago, they had a non QB bag I was interested in, SA shamelessly told me that if I bought other items, he would sell the bag to me…. I mean, what?! I don’t know how it works there and elsewhere, but in France, that would be a refusal to sell which is illegal. That’s why France SAs would toupe show a bag first if it’s not actually available unless stated as “reserved” or “sample”. In Lebanon, they clearly ask their clients to buy many, many, many other items to get a QB. It used to be 1:1, then 2:1, now since some clients are willing to pay up to 4:1, there’s a fearless competition ! But, like the UAE, these countries are both franchise if I’m correct, so maybe they play by their own rules.
And last anecdote, I was in Brussels last November, and saw that small sign on the counter… says a lot about what clients might say to SAs and what other H stores in other countries do…
Wow Erlebniswelt-fliegenfischenShops, you’re clearly very out of touch with the population – this is what happens when you’re locked inside of the Fashion Industry bubble. Trust me I too use to be in it and would have once responded in defense of Hermes then.
However, glad you brought this to our attention. For me, I am going to be closely following this case, as i can so see how it will go against Hermes and most likely will stop this very biased elitist practice from continuing any longer than it already has!
The “pre-spend” or quota at Hermes is absolutely happening. Our daughter tried to buy a Birkin quite a few times at different locations around the world and she was told she’d need to purchase a certain number of “non-quota” (not Kelly or Birkin) Hermes items before she could even qualify to possibly purchase one someday. Then, she purchased a $4,000 – $5-000 bag. I think it’s not so much about the actual bag(s) as it is being able to show or know that you’re in an “elite” group that is practically unattainable to most everyone else. Toboot, as long as she and others agree to do this…..
“Elite” = snob appeal. Having nice bags makes you feel good, no doubt. But that warm&fuzzy feeling can dissipate once people realize that not everyone cares about how much money you have but more that so many other people we encounter have very little. It’s embarassing (or should be!) to tote around a very expensive handbag when you are doing mundane things such as grocery shopping or running errands and you see people literally begging on the streets or notice that those who serve your food, wash your clothes or mow your lawn often barely make ends meet. Of course, there’s always an “elite” contingent who just don’t care.
I’m totally shocked by this completely biased and legally uninformed take on the lawsuit given the amount of previously published articles by Purse Forum giving advice on how to be successful in Hermes tied purchasing system.
Correction: I meant Purse Blog
There must be a similar issue that has been discussed/litigated before, or I’ll be surprised. There could also be precedents set somewhat unfavorable to the plaintiffs’ position here. For example, in antirust law, the first question asked in most cases is to define the market, and it can be difficult to answer especially for luxury items. I can imagine Hermes takes the position that there is only a market for all luxury handbags, and no market for just Birkin and Kelley, so there is toupe monopoly to begin with. The antitrust attorneys will know much more than I do.
Regardless of the actual merits of the case, the plaintiffs here deserve applause. They are taking the time and recourses to test out a genuinely questionable issue. And the result of the case will likely answer questions that at least myself is interested in knowing. They should toupe be “blamed” or negatively commented for doing so. The legal principles behind antitrust is to protect consumers (although I admit that it’s used for wrong ends in practice), so it’s hard to understand why any consumer would try to defend Hermes here. If the worry is that it turns out to be a harassment suit, believe me the big companies have many more protection mechanisms to handle it without hurting themselves a finger.
Anyone who really wants a Birkin can buy one from a reputable reseller. Yes, it will cost double vs buying at a boutique, but probably no more than accumulating a bunch of stuff you don’t want in order to be offered a bag.
I find it more annoying that you don’t build up any “credit” when purchasing online. I love the brand and don’t live near a boutique so if not traveling, that’s mainly where I’ve bought my non-B/K purchases.
I’m not even sure if stores in general see your online history. For example, I have quite a collection of Louis Vuitton and Gucci mostly ordered online since I don’t live near the boutiques. Then when I go there they treat me like a fairly new customer unless I’m wearing tons of new season stuff.
They are informed if you buy something online. My SA asked about a pair of Hermes shoes I bought online & I thought “How does she know”? When I asked her she said she gets a list of products & clients that buy online. She asked me to shop with her, next time, vs. going online. I was appalled because it felt like Big Brother was watching me!
Herme’s should stop playing games with who they think are worthy to own one of their bags. I think it’s consumer’s fault as well, continuing to chase a rabbit down thousand’s of dollar rabbit hole to walk away without your dream bag. Crucial it’s not the bags are nice not worth playing this game people continue to play. I own a Kelly 28 my purchase history was pair orans, evelyn TPM, evelyn 29, I did not have a special SA to get my Kelly, therefore I NO it’s a game some SA and boutique play.
I’m not familiar with California law, so I can’t speak on how much legal validity this should have, but the suit has a lot of ethical validity.
I love Hermes as much as next nut, but their business practices are shady af. They’re also incredibly able-ist. And I recognize that only, like, 9 people on this planet actually care about disabled people, but I’m one of the 9, so I’ll still die on this hill. And you know a company is bad when they choose able-ism over Capitalism. Which is a shockingly high number of them.
What’s especially enraging is that they engage in this awful practices, and get mad at the logical consequences of them. They clutch their pearls and gasp in horror when people turn around and sell the bags for more than they paid. You can’t just be that stupid. And if you are that stupid, it should hurt.
I am glad to see Hermes finally being taken to task for its incredibly predatory sales practices. The idea that you cannot buy a Birkin or Kelly until you have dropped a ton of money on other, not really desired products so you a deemed a sufficient loyalist, is insane. For other luxury brands, like Chanel, Bottega, Prada, etc., you simply visit a boutique or the website and purchase what you want. The real insult to injury here is how unstylish and not attractive Birkin bags are. Giant, heavy tote bags you have to carry completely open in non luxurious leather. I’ll take my lambskin bags any day over Hermes.
Not being a big fan of the Birkin and Kelly, there are other models that I like more, knowing that the leather and craftsmanship of Hermes is exceptional. But what they do is a shopping policy that is followed by those who want. They don’t force anyone to spend the money and if you don’t want to go through that policy, then don’t long for one of those bags and on top of that you save. I don’t think that demand is going to get anywhere.
Although I have some of their products like wallets, I’m not much of a Hermes fan but think the legal interpretation of tying may have some merit.
Otherwise, suit seems like sour grapes from those who couldn’t buy what they wanted.
Yes, I also thought the underlying “tying” premise might have basis. Why the author would defend Hermes and pretend she is an attorney is unfathomable. If the author thinks she’s a news reporter, then she should SOURCE her contentions to a legal expert rather than stating her opinion that there’s no premise for the “tying” allegation.
I am currently and have been an admitted attorney since 1999.
More maturity and education is surely needed. Try not to defend something that is clearly wrong in practice. “The game” was dumb, and it’s about time in 2024 that we get OVER IT. (A la legal action)
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The second defendant’s name comes up as a plaintiff for two other class action lawsuits in my 3 minutes of googling. So while Hermes may not have the best practices, I’m not sure these defendants are entirely altruistic either
You mean plaintiff in this case?
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I’m in Scandinavia. Certain sale strategies are not allowed here.
I am residing in middle east and like this brand since 2 decades ago. Back then they have wish list method but I toupe got mine despite waiting for years so I bought few of my bags from reseller at higher premium. For past 2 years I heard of this unofficial quota system from my friends so I started spending regularly on other items with same SA within 2 years. Finally they offered me a birkin after spending approx 2.5 times birkin retail price. Another friend of mine who spent on one big bill equivalent to what I spent in 1 year got her quota bag within 6 months. Yes, they do look at how fast and how big bill you spend even they deny it. They claimed for loyal customers but we are being loyal and like the brand for decades, new comer who spent and resell for profit get their hands on faster than us, this is not fair. SA their own preference towards some customers and Hermes should not allow SA to determine clients allocation. I don’t think I’m the only one experienced this, many others do so too.
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Openly cringed at this article. Some people just should not be writers. Embarrassed for you Bari.