NorCal judge questions validity of Hermes antitrust lawsuit during case management conference

Melanie Woodrow Image
Friday, September 20, 2024
NorCal judge questions validity of Hermes antitrust lawsuit
A Northern California judge questioned the validity of the Hermes antitrust lawsuit during a case management conference on Thursday.

SAN FRANCISCO (KGO) -- A Hermes antitrust lawsuit didn't get very far in court on Thursday.

ABC7 News I-Team reporter Melanie Woodrow was inside the U.S. District Court in the Northern District of California for a case management conference in the proposed class action lawsuit filed against the luxury retailer.

Judge James Donato said he read a proposed class action antitrust lawsuit against luxury retailer Hermes with interest but admitted that he was really struggling with why it was an antitrust injury.

The lawsuit alleges Hermes was tying the purchase of its popular Birkin bags to the purchase of other ancillary products, like belts or scarves. The lawsuit says that only once a consumer "has a sufficient purchase history ... will they be offered the opportunity to purchase a Birkin."

In court, Judge Donato said in part, "These are luxury goods. There are people who want Birkins. This is a highly consumer choice-driven market."

RELATED: When not landing a Birkin bag lands luxury brand Hermès a lawsuit: Here's a closer look at the case

A lawsuit filed in Northern California against Hermès alleges the retailer ties purchases of Birkin bags to spending on other luxury items.

He also told the plaintiffs' attorneys, "You're going to have to spell out how competition is being affected adversely."

Judge Donato went on to say, "No client says I had an Hermes belt shoved down my throat, but I really wanted a Prada belt."

He added that Hermes can run its business any way it wants, including producing five Birkins a year and charging millions of dollars for them.

He also suggested the business model is pro-competition because anyone who doesn't want to play along can purchase luxury bags elsewhere.

The plaintiff's attorneys asked to amend their lawsuit and return in three weeks.

They had no comment for ABC7 News and neither did Hermes' attorneys or brand employees present in court as well.

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