Hermes shoppers try again in Birkin bag antitrust lawsuit
By Mike Scarcella
Oct 14 (Reuters) -U.S. consumers suing French luxury house Hermes have revised their lawsuit once again, hoping to persuade a skeptical judge that the company is forcing buyers to spend thousands of dollars on other products before they can purchase one of its famed Birkin bags.
The three California plaintiffs filed their third complaint on Friday, adding more allegations and details after Hermes asked the federal court in San Francisco to throw out the closely watched case.
The lawsuit still claims that Hermes only gives customers with "sufficient purchase history" a chance to buy a coveted Birkin bag, which are handmade and can cost thousands of dollars.
The consumers contend Hermes is violating U.S. antitrust law by tying the purchase of other products to the ability to buy a Birkin bag. The amended lawsuit added false advertising and fraud claims.
Hermes and its sales staff “know that many of the people they induce to buy ancillary products will not in fact get a Birkin bag,” according to the lawsuit.
Hermes did not immediately respond to requests for comment. The consumers' lawyers declined to comment.
Hermes has denied any wrongdoing, telling U.S. District Judge James Donato that the claims are “far-fetched” and that the company faced intense market competition.
Donato, a former antitrust lawyer before he took the bench in 2014, was doubtful of the consumers’ claims at a hearing in September.
“Hermes can run its business any way it wants. If it chooses to make five Birkin bags a year and charge a million to them, it can do that,” Donato said. He added: “The fact that a lot of your clients may not be able to get a Birkin bag is not a Hermes antitrust problem.”
Hermes’ alleged conduct could even bolster competition, the judge suggested, by prompting shoppers to buy a rival's bag in order to avoid the need to purchase additional Hermes accessories.
“If Hermes is going to make you pay a fortune for their bag, they are leaving the ground open for every competitor to say, ‘Come on in and get our beautiful bag and you don’t have to buy $3,000 or $30,000 worth of belts,” Donato said.
The case is Tina Cavalleri et al v. Hermes International et al, U.S. District Court, Northern District of California, No. 3:24-cv-01707-JD.
For plaintiffs: Joshua Haffner of Haffner Law, and Shaun Setareh of Setareh Law Group
For defendants: Christopher Yates, Belinda Lee and Ashley Bauer of Latham & Watkins
Read more:
Birkin bag shoppers suing Hermes expand their antitrust case
Hermes asks court to toss 'far-fetched' Birkin bag antitrust case
Hermes hires Latham team to fight consumers’ Birkin bag lawsuit
Reporting by Mike Scarcella
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