French luxury leather goods business Hermès has for a second time dismissed the class action case against California for allegedly restricting Birkin bag sales to customers with prior purchase history. By
ILM.
The lawsuit, filed last year, alleged that Hermès violated U.S. antitrust laws by restricting Birkin purchases to customers with a sufficient purchase history and using a “hidden lottery” that required buying substantial amounts of other Hermès products to qualify for a bag. Hermès argued that the sale of its exclusive bags occurs in a competitive market.
In hearings last year, District Judge James Donato in San Francisco expressed scepticism about the claims, noting that Hermès has the right to produce a very limited number of Birkins at high prices, and therefore dismissed the earlier version of the lawsuit. On September 17, he further rejected claims that the company was suppressing competition.
In his order, Donato wrote: “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 dismissed the lawsuit with prejudice, meaning the case cannot be refiled.
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