Hermes sued over Birkin sales practices

French luxury brand Hermes’s iconic Birkin handbag is at the center of a monopoly lawsuit filed by two customers in California, alleging the company’s sales tactics violate antitrust law.

Birkin bags can sell from $10,000 at retail to record premiums of $450,000 at auction.

Part of the allure of the luxury bags is their exclusivity. One cannot buy them unless invited to do so. And to get access, purchasers have to first spend on other Hermes products.

Plaintiffs argue that Hermes dominates the market for Birkin bags since it is its only producer, and this gives it undue power.

They seek class-action status, damages, and an injunction against Hermes’s alleged practices. 

Hermes has not commented on the lawsuit, but its tactics may be challenged in court as the case unfolds.