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U.S. judge dismisses case filed by consumers in California

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Suit accused Hermes of violating U.S. antitrust law

By Mike Scarcella

Sept 17 (Reuters) - French luxury brand Hermes has

convinced a U.S. judge to dismiss for a second time a lawsuit

alleging it violates antitrust law by forcing buyers to spend

thousands of dollars on its products before they can purchase

one of the fashion company's famed Birkin handbags.

U.S. District Judge James Donato in San Francisco on

Wednesday rejected claims by three Hermes shoppers in California

that the company was suppressing competition.

"It may be, as plaintiffs suggest, that Hermes reserves the

Birkin bag for its highest-paying customers, but that in itself

is not an antitrust violation," Donato wrote in his order.

The judge dismissed the proposed class action with

prejudice, which means it cannot be refiled.

Hermes, its lawyers and attorneys for the plaintiffs did not

immediately respond to requests for comment.

The lawsuit, filed last year, claimed Hermes violated U.S.

antitrust law by "tying" or restricting purchases of its Birkin

bags to customers with a sufficient sales history with the

company.

The consumers called the retail price of a Birkin bag an

illusion that "masked 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."

Hermes and its sales staff "know that many of the people

they induce to buy ancillary products will not in fact get a

Birkin bag," the lawsuit said.

In seeking dismissal, Hermes told Donato that sales of

Birkin bags, which are handmade and can cost thousands of

dollars, take place in a competitive market.

Donato at a hearing last year cast doubt on the claims made

by the plaintiffs before he dismissed an earlier version of the

lawsuit. The judge told the lawyers for the plaintiffs that if

Hermes "chooses to make five Birkin bags a year and charge a

million to them, it can do that."