Luxury Shoppers Voice Frustrations Over Birkin Bag Accessibility in Legal Battle

Birkin handbags are known to be some of the most expensive and exclusive bags globally. Hermès only produces a limited quantity of Birkins each year, with prices reaching up to $450,000. However, simply having the funds may not guarantee you a purchase.

Recently, two customers from California filed a lawsuit against Hermès for allegedly operating as a monopoly in the Birkin market. They claim that the company's selling practices for Birkin bags violate antitrust laws.

The customers were informed that they had to buy other Hermès items and accessories before being able to buy a Birkin bag. They believe that Hermès holds a strong position in the market for Birkin handbags, which means it is not right for the company to require customers to purchase additional products like shoes, scarves, or belts.

Shoppers outside a Costco store in Bayonne, New Jersey, US, on Saturday, Dec. 9, 2023.

Shoppers outside a Costco store in Bayonne, New Jersey, US, on Saturday, Dec. 9, 2023.

Angus Mordant/Bloomberg/Getty Images

Related article

Why Costco is selling gold bars and silver coins

The complaint alleges that consumers are pressured to buy ancillary products from [Hermès] in order to purchase a Birkin bag. This practice is considered anticompetitive and is referred to as tying conduct.

According to US law, it is illegal for monopolies to engage in forced buying, also known as “tie-in” sales. This tactic is used to increase sales in other markets where the company is not dominant, making it harder for competitors to enter the market.

The lawsuit claims that Hermès has used "tying arrangements" to raise the price of Birkin bags and boost profits from them.

Hermès, headquartered in Paris, did not provide a comment to CNN regarding the lawsuit. The company's website states that each Birkin bag is handcrafted by a single artisan from beginning to end.

Antitrust lawyers say the lawsuit against Hermès will be difficult to prove. But even if it fails, it could be damaging to the company’s image.

‘Deemed worthy’ to buy

Birkin bags are considered a symbol of extreme wealth.

Acquiring a Birkin handbag directly from Hermès can be quite challenging, as they typically sell for anywhere from $10,000 to as high as $450,000 at auction. This exclusive purchase is usually reserved for celebrities or individuals with a long history of spending with the luxury brand. Hermès only releases a limited number of Birkin bags for sale each year, and they are not available for purchase online.

In an aerial view, Walt Disney World's iconic Cinderella Castle sits on the grounds of the theme park on February 08, 2023 in Orlando, Florida.

In an aerial view, Walt Disney World's iconic Cinderella Castle sits on the grounds of the theme park on February 08, 2023 in Orlando, Florida.

Joe Raedle/Getty Images

Related article

The rich are skipping ahead in line at airports, Disney World, and ski resorts. They are accused of being able to buy exclusive Birkin handbags, while others are left behind.

A complaint claims that only certain customers are allowed to buy a Birkin handbag. It is believed that there is no fair way for all customers to get the style, size, color, leather, and hardware they desire.

A 2022 report from Credit Suisse and Deloitte revealed that in 2020, sales of Birkin bags increased by 38% as luxury items became more valuable during the Covid-19 pandemic. Furthermore, resellers saw a surge in demand with record premiums being reported in 2021. In November of that year, Christie's auctioned a crocodile-skin Birkin for nearly $390,000, marking it as the second-highest price ever paid for a handbag at that time.

Hermes, a company that went public in 2013, reached its highest trading price ever on Tuesday.

Lawsuit faces uphill climb

To win, the lawsuit will have to prove that Hermès is a monopoly and that its product tie-in strategy is illegal.

Antitrust experts believe that both companies face significant obstacles in their legal battle. According to Christine Bartholomew, a professor at the University at Buffalo School of Law, proving a monopoly claim is difficult, and they also need to demonstrate a tie-in.

Bartholomew mentioned that Hermès may argue that their actions were aimed at maintaining brand loyalty in a tough market. The plaintiffs will need to argue against this.

According to John Mark Newman, a professor at the University of Miami School of Law and former deputy director of the Federal Trade Commission’s Bureau of Competition, the plaintiffs will have a tough time proving a monopoly.

Even if they do not win the case, it has brought attention to a questionable practice that may make shoppers uncomfortable.

According to Newman, the plaintiffs claim that Hermes representatives implied they were not worthy enough to purchase a Birkin bag. It is possible that the plaintiffs simply wanted to share their experience with others, and in that sense, they have succeeded.

Editor's P/S:

The lawsuit against Hermès highlights the exclusive nature of luxury goods and the lengths that some companies will go to maintain their status. The practice of "tying arrangements," where customers are forced to purchase additional products to gain access to a desired item, raises antitrust concerns. While proving a monopoly claim is challenging, the lawsuit has brought attention to the issue and could potentially lead to changes in the way that luxury brands operate.

The lawsuit also raises questions about the accessibility of luxury goods. Birkin bags are often seen as symbols of wealth and status, but the limited availability and strict purchasing requirements create a sense of exclusivity that can be off-putting to some consumers. The lawsuit argues that Hermès' practices unfairly limit access to these bags, preventing ordinary customers from acquiring them. It remains to be seen whether the lawsuit will succeed, but it has certainly sparked a conversation about the ethics of luxury consumption and the role of competition in the luxury market.