Hermès Faces Appeal Over Dismissed Birkin Bag Antitrust Lawsuit

Three California consumers have appealed a federal court’s decision dismissing their lawsuit against Hermès, claiming the luxury retailer’s sales practices for its Birkin handbags violate United States antitrust law. The appeal, filed in the Ninth U.S. Circuit Court of Appeals, follows a September ruling in San Francisco that dismissed the case after several failed attempts to amend the claims.

The plaintiffs alleged that Hermès required shoppers to buy other expensive products, such as scarves, jewelry, or shoes, before being allowed to purchase a Birkin bag. They argued that this amounted to an unlawful tying arrangement that forced customers to make additional purchases to gain access to a separate, highly sought-after product.

U.S. District Judge James Donato rejected the claims, ruling that the plaintiffs failed to define a coherent market or show that Hermès had market power or harmed competition. The court found the proposed “elitist luxury handbag” market too vague and unsupported, noting that the plaintiffs relied on outdated reports about luxury consumption rather than current data.

“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 wrote. He added that businesses may choose how to operate as long as their practices do not restrain competition.

After dismissing the federal claims with prejudice, the court declined to consider the related state law allegations.

Hermès denied wrongdoing, stating that Birkin bags are sold in a competitive luxury market and that its selective sales process is lawful. The company’s attorneys said exclusivity is part of its brand identity rather than a form of coercion.

The plaintiffs’ attorneys contend that Hermès’ practices pressure consumers to make unnecessary purchases and are seeking to overturn the dismissal on appeal. The Ninth Circuit will now determine whether the case can proceed.