After seven days of hearings, a US federal judge placed a temporary block against the merger plans of Tapestry, Inc., a luxury conglomerate including brands such as Kate Spade New York, Coach New York, and Stuart Weitzman with Capri Holdings, the company that owns Versace and Michael Kors. Jennifer L.... Read More »
Class Action Alleges Hermès Discriminates in Birkin Bag Sales
Hermès, the distinguished French luxury goods manufacturer renowned for its iconic handbags, is currently facing a class action lawsuit over alleged antitrust violations concerning the sale of its prestigious Birkin handbags. The lawsuit, filed in San Francisco, contends that Hermès has engaged in discriminatory sales practices by limiting access to Birkin bags only to customers with a substantial purchase history with the brand.
An antitrust violation occurs when a company engages in practices that restrict competition in the marketplace or harm consumers. These violations can include actions such as price-fixing, monopolization, bid-rigging, and other anti-competitive behaviors. Antitrust laws are designed to promote fair competition and prevent businesses from engaging in practices that stifle competition, limit consumer choice, or artificially inflate prices.
The lawsuit features two named plaintiffs, Tina Cavalleri and Mark Glinoga, who allege that they were subjected to Hermès' discriminatory sales tactics.
Central to the plaintiffs' argument is the assertion that Hermès sales associates actively coerce customers into buying additional Hermès merchandise as a condition for being considered eligible to purchase a Birkin bag.
Per legal documents, Cavalleri asserts that although having spent thousands of dollars on other Hermès pieces, sales associates informed her that she still remained ineligible to purchase a Birkin bag. Instead, she was encouraged to continue purchasing more items to increase the likelihood of her eligibility in the future.
Likewise, Glinoga describes several occasions when sales associates informed him that he needed to buy extra items and accessories to qualify for purchasing a Birkin bag.
The lawsuit alleges that this behavior constitutes an illicit arrangement, where the ability to purchase Birkin bags is dependent on buying other merchandise from Hermès.The plaintiffs assert that such tactics exploit Hermès' significant market power and violate antitrust laws designed to promote fair competition.
In seeking class action status, the plaintiffs aim to represent a larger group of consumers who have encountered similar hurdles in their attempts to acquire Birkin bags from Hermès. Beyond seeking unspecified monetary damages, the plaintiffs are seeking injunctive relief to halt Hermès' purportedly anticompetitive sales practices and restore fair access to Birkin bags for all customers.
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