Hermès Lawyers Up To Fight Customers Claiming Birkins Are Too Exclusive
By Mikelle Leow, 16 Apr 2024
Photo 301534457 © Svleusden | Dreamstime.com
Hermès’ latest arm candy? Not handbags, but lawyers who will stand up to a class-action lawsuit insisting that the luxury fashion house plays favorites and offers the iconic Birkins only to big spenders of multiple purchases.
The brand has assembled a legal dream team from Latham & Watkins, a firm with a history of defending high-profile clients like Walmart in antitrust battles. The high-profile suit, filed in March, accuses Hermès of using Birkin bags as bait to pressure customers into buying scarves, jewelry, and other luxury items before getting a chance to snag the toteable status symbol. This alleged practice, called “tying,” could violate antitrust laws if proven.
The plaintiffs, Tina Cavalleri and Mark Glinoga, argued that Hermès is essentially inflating Birkin prices by forcing customers to build a “purchase profile” through unrelated purchases. Cavalleri said she spent a small fortune of “tens of thousands” of dollars at Hermès but was still denied a Birkin, while Glinoga faced similar roadblocks despite repeated attempts.
The lawsuit, representing potentially thousands of others who have felt sidelined by what they perceive as an unfair sales strategy, further alleged that the brand incentivizes salespeople to push other products by offering commissions on everything except Birkin bags.
Latham & Watkins counters with a heavyweight legal team led by Christopher Yates and Belinda Lee, both antitrust litigation veterans who will bring formidable expertise to Hermès’ defense. The outcome of this case will likely hinge on the plaintiffs’ ability to convincingly argue that Hermès’ marketing tactics unfairly restrict consumer choice and distort competition within the luxury goods market.
[via PYMNTS.com, Reuters, The Week, TIME, cover photo 301534457 © Svleusden | Dreamstime.com]