On September 17, 2025, U.S. District Judge James Donato in San Francisco dismissed a lawsuit against French luxury brand Hermes for the second time.
Three California shoppers claimed Hermes violated antitrust laws by requiring them to spend heavily on other products to qualify for a Birkin handbag purchase.
Judge’s Ruling
Judge Donato rejected the claims, stating,
“Hermes may favor its top-spending customers for Birkin bags, but that’s not an antitrust violation.”
He dismissed the proposed class-action lawsuit with prejudice, meaning it cannot be refiled.
Lawsuit Allegations
Filed in 2024, the lawsuit argued Hermes used a “tying” strategy, limiting Birkin bag access to customers with significant purchase histories.
The plaintiffs called the bag’s retail price misleading, alleging a “hidden lottery system” that pushed buyers to purchase other Hermes items without guaranteeing a Birkin.
Hermes’ Defense
Hermes countered that its handmade Birkin bags, which can cost thousands, are sold in a competitive market.
The company argued its sales practices were lawful. Neither Hermes, its legal team, nor the plaintiffs’ attorneys commented immediately.
Court’s Stance
In a prior hearing, Donato questioned the plaintiffs’ claims. He noted Hermes could legally limit production and set high prices, saying,
“If Hermes wants to make five Birkin bags a year and charge a million each, it can.”
Implications
The ruling reinforces Hermes’ right to control its exclusive product distribution. It ends the legal challenge, highlighting the difficulty of proving antitrust violations in luxury markets.
