AIRLINK 175.36 Increased By ▲ 1.53 (0.88%)
BOP 13.09 Decreased By ▼ -0.07 (-0.53%)
CNERGY 7.37 Decreased By ▼ -0.03 (-0.41%)
FCCL 43.87 Increased By ▲ 0.34 (0.78%)
FFL 14.81 Decreased By ▼ -0.04 (-0.27%)
FLYNG 26.51 Increased By ▲ 0.10 (0.38%)
HUBC 131.48 Increased By ▲ 0.27 (0.21%)
HUMNL 13.21 Increased By ▲ 0.01 (0.08%)
KEL 4.40 Decreased By ▼ -0.03 (-0.68%)
KOSM 6.00 Decreased By ▼ -0.01 (-0.17%)
MLCF 56.42 Increased By ▲ 1.39 (2.53%)
OGDC 217.24 Decreased By ▼ -1.58 (-0.72%)
PACE 5.89 Decreased By ▼ -0.03 (-0.51%)
PAEL 41.10 Decreased By ▼ -0.12 (-0.29%)
PIAHCLA 16.51 Increased By ▲ 0.08 (0.49%)
PIBTL 9.52 Decreased By ▼ -0.19 (-1.96%)
POWER 11.51 Increased By ▲ 0.01 (0.09%)
PPL 184.23 Decreased By ▼ -2.44 (-1.31%)
PRL 34.45 Increased By ▲ 0.27 (0.79%)
PTC 23.11 Increased By ▲ 0.15 (0.65%)
SEARL 93.50 Decreased By ▼ -0.50 (-0.53%)
SILK 1.16 Increased By ▲ 0.01 (0.87%)
SSGC 36.84 Decreased By ▼ -0.19 (-0.51%)
SYM 16.43 Increased By ▲ 0.76 (4.85%)
TELE 7.74 Decreased By ▼ -0.04 (-0.51%)
TPLP 10.78 Decreased By ▼ -0.09 (-0.83%)
TRG 59.34 Decreased By ▼ -1.02 (-1.69%)
WAVESAPP 10.75 Decreased By ▼ -0.10 (-0.92%)
WTL 1.31 Decreased By ▼ -0.02 (-1.5%)
YOUW 3.79 Increased By ▲ 0.01 (0.26%)
BR100 12,096 Decreased By -51.6 (-0.42%)
BR30 36,827 Decreased By -270.2 (-0.73%)
KSE100 114,085 Decreased By -93.1 (-0.08%)
KSE30 35,258 Decreased By -52.2 (-0.15%)

French 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 company’s sales associates are driving the scheme by pushing customers to buy shoes, scarves, jewelry and other items to gain an opportunity to buy a Birkin, the lawsuit said.

Hermes and attorneys for the plaintiffs did not immediately respond to requests for comment.

Hermes’ shares reach record high as booming sales outpace rivals

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.

“Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag (in a private room),” the lawsuit claimed. 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.

Hermes sales beat expectations as US, Europe shoppers splurge on Birkin bags

The lawsuit said it was seeking class action status for thousands of U.S. consumers who bought Hermes goods or were asked to buy them in order to purchase a Birkin.

Hermes operates about 43 stores in the United States, including eight in California. The plaintiffs are seeking unspecified monetary damages and a court order barring Hermes’ allegedly anticompetitive practices.

Comments

Comments are closed.