Hermès Once Again Defeats Class Action Over Exclusive Birkin Bags

French luxury brand Hermès has once again convinced a US judge to dismiss a lawsuit alleging it violated antitrust law by forcing customers to spend thousands of dollars on other products before being allowed to buy one of its famed Birkin handbags.

 

US District Judge James Donato in San Francisco on Wednesday rejected claims by three Hermès shoppers in California that the company was suppressing competition.

 

“It may be, as plaintiffs suggest, that Hermès reserves the Birkin bag for its highest-paying customers, but that in itself is not an antitrust violation,” Donato wrote in his order.

 

The judge dismissed the proposed class action with prejudice, meaning it cannot be refiled.

 

The lawsuit, filed last year, claimed Hermès violated US antitrust law by “tying” purchases of Birkin bags to customers with a sufficient spending history at the company.

 

The claimants argued that the retail price of a Birkin was an illusion, masking “a hidden lottery system that forces consumers to purchase substantial amounts of Hermès ancillary products to ‘qualify’ for the mere opportunity to buy a Birkin.”

 

The suit further alleged that Hermès and its sales staff “know that many of the people they induce to buy ancillary products will not in fact get a Birkin bag.”

 

In seeking dismissal, Hermès argued that sales of Birkin bags, which are handmade and can cost thousands of dollars, take place in a competitive market.

 

Judge Donato had already cast doubt on the plaintiffs’ claims at a hearing last year, before dismissing an earlier version of the lawsuit. At the time, he told the plaintiffs’ lawyers that if Hermès “chooses to make five Birkin bags a year and charge a million for them, it can do that.”

 

 

For any enquiries please fill out this form, or contact info@thelawreporters.com and  Follow  The Law Reporters on WhatsApp Channels