Hermès Prevails in Second Class-Action Lawsuit Concerning the Birkin

The judge determined that reserving bags for high-paying clients does not constitute an antitrust violation and dismissed the lawsuit with prejudice.

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The pursuit of a Birkin bag continues to be exceptionally exclusive. A US judge has dismissed a class lawsuit against Hermès for the second time, rejecting allegations that the French luxury company infringes antitrust law. The complaint, initiated by three California consumers, claimed that the company's notoriously ambiguous sales process constituted an illegal "tying" arrangement, compelling clients to expend substantial sums on additional products to be eligible for the opportunity to purchase a Birkin.

In a decisive verdict that reinforces Hermès’s business model, US District Judge James Donato dismissed the claims “with prejudice,” signifying that the lawsuit cannot be refiled. The judge stated, “It is possible, as the plaintiffs assert, that Hermès allocates the Birkin bag to its highest-paying clientele; however, this alone does not constitute an antitrust infringement.” This declaration reiterates a remark he made in an earlier hearing, in which he informed the plaintiffs that if Hermès "opts to produce five Birkin bags annually and price them at a million each, it is entitled to do so."

The complaint, asserting that the Birkin's retail price constituted a "illusion" concealing a "hidden lottery system," now seems to be conclusively resolved. The court's ruling represents a substantial triumph for the luxury brand, reinforcing the legal precedent for its enduring strategy of exclusivity, which emphasizes a profound client relationship over open-market transactions.