Birkin Bag Shoppers Expand Antitrust Case Against Hermes Over Purchase History Requirement
U.S. consumers suing the French luxury house Hermes have expanded their lawsuit, accusing the company of requiring buyers
By: : Daniel
Update: 2024-06-02 03:45 GMT
Birkin Bag Shoppers Expand Antitrust Case Against Hermes Over Purchase History Requirement
U.S. consumers suing the French luxury house Hermes have expanded their lawsuit, accusing the company of requiring buyers to spend thousands of dollars on other products before they can purchase one of its renowned Birkin bags.
Another California resident has joined the lawsuit in the San Francisco federal court, becoming the third named plaintiff in the proposed class action initially filed in March. The lawsuit alleges that Hermes only allows customers with a "sufficient purchase history" to buy a Birkin bag, which is handmade and can cost thousands of dollars.
The newly amended complaint includes additional details about the luxury handbag market, aiming to counter Hermes’ initial efforts to dismiss the case. "The nominal retail price of a Birkin bag is a facade, masking a hidden lottery system that forces consumers to purchase substantial amounts of Hermes ancillary products to ‘qualify’ for the mere opportunity to buy a Birkin,” the amended lawsuit states.
In a filing last month, Hermes dismissed the lawsuit as "far-fetched," arguing that customers without a purchase history can still buy a Birkin and that such a requirement would not be illegal even if it existed.
"Hermes faces clear competition from different sellers on the wide range of products it sells," the company argued. Thursday's amended complaint, however, contends that "the Birkin bag’s exclusivity, limited availability, and iconic status make it difficult to find a perfect substitute."
The plaintiffs argue that offerings from rival luxury brands such as Gucci, Prada, and Louis Vuitton “lack the unique brand identity and exclusivity that define the Birkin bag.” The new complaint also cites statements Hermes made in a 2022 trademark lawsuit against artist Mason Rothschild, where Hermes described the Birkin’s “mysterious waitlist, intimidating price tags, and extreme scarcity” as factors that make it a highly desirable "holy grail" handbag that serves as an investment or store of value.