A fresh class action has hit French luxury powerhouse Hermes as a group of U.S. consumers has submitted an amended lawsuit, accusing the brand of engaging in anti-competitive practices. The plaintiffs contend that Hermes requires customers to make substantial purchases of other products before granting them the opportunity to buy the iconic Birkin bag, a product synonymous with luxury and status. This latest complaint marks the third iteration in their legal battle, seeking to persuade a cautious federal judge in San Francisco to take their allegations seriously.
At the centre of the lawsuit is the claim that Hermes enforces a policy that restricts access to its coveted Birkin bags, only allowing customers with what it describes as a “sufficient purchase history” to make a purchase. The Birkin, often handcrafted and priced at tens of thousands of dollars, is seen not just as a handbag but as a cultural emblem of exclusivity. The plaintiffs argue that this practice violates U.S. antitrust laws by linking the purchase of a Birkin bag to the necessity of buying other Hermes products—an arrangement legally termed “tying.”
The revised complaint also expands beyond antitrust issues, adding allegations of false advertising and deceptive practices. Plaintiffs assert that Hermes misleads customers into believing that purchasing supplementary items like scarves, belts, or other luxury accessories will eventually enable them to buy a Birkin bag. However, the complaint claims that many customers, despite their significant investments in other Hermes items, find themselves without the opportunity to purchase the coveted handbag.
Hermes has consistently denied the allegations, standing firm in its assertion that its business practices comply with the law. The company maintains that the claims are exaggerated and without merit. During a hearing in September, U.S. District Judge James Donato—who previously worked as an antitrust lawyer—expressed scepticism regarding the plaintiffs’ arguments. He noted that, as a private business, Hermes has the right to determine how it manages its inventory and pricing strategies, even if that includes the selective sale of Birkin bags at premium prices. “Hermes can operate its business however it chooses,” he stated, adding, “If it decides to make only a handful of Birkin bags each year and price them at exorbitant rates, that is its prerogative.”
Judge Donato further suggested that Hermes’s practices might unintentionally foster greater competition in the luxury market. By imposing high costs on its own products, he argued, the brand leaves room for rival luxury labels to attract customers who may not be inclined to spend heavily on Hermes items. “If Hermes sets such high prices for their bags,” he observed, “it opens up opportunities for other competitors.”
As this legal drama continues to unfold, now in its third round of revisions, it is attracting considerable attention from both legal analysts and luxury market insiders. The outcome could significantly impact how luxury brands structure their sales practices and customer relationships, especially in an era where consumer rights and transparency are increasingly prioritized.
