Hermès is facing renewed legal challenges from US consumers who allege that the French luxury brand requires customers to make additional purchases before allowing them to buy its Birkin bags, Reuters reported.
On 11 October 2024, three California plaintiffs filed their third amended complaint, adding further allegations and details to support their claims.
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That move follows Hermès’ request to dismiss the case in a federal court in San Francisco.
The revised lawsuit aims to convince California’s District Judge James Donato of the company’s purported antitrust violations.
In March this year, two shoppers, Tina Cavalleri and Mark Glinoga, filed a class-action lawsuit against Hermès over alleged violation of antitrust laws in sales practices for its Birkin handbags.
Donato, who heard the case last month, expressed scepticism towards the plaintiffs’ arguments.
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By GlobalDataThe judge was quoted by the news agency as saying: “Hermès 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. The fact that a lot of your clients may not be able to get a Birkin bag is not a Hermès antitrust problem.”
He also suggested that Hermès’ sales practices could inadvertently promote competition by encouraging consumers to consider purchasing from rival brands that do not impose such alleged purchasing requirements.
“If Hermès 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 added.
The claimants argue that Hermès operates a policy where only customers with a “sufficient purchase history” are given the opportunity to purchase a handmade Birkin bag, which can cost thousands of dollars.
The lawsuit now includes accusations of false advertising and fraud, suggesting that Hermès and its sales staff misled consumers, who are led to believe that purchasing other products will increase their chances of obtaining a Birkin bag.
Hermès has yet to comment on the updated lawsuit while the consumers’ legal representatives have declined to comment.
Hermès had previously denied any wrongdoing, stating that the company faces significant competition in the market.
