Hermes lawsuit: Northern California judge questions validity during case management conference

SAN FRANCISCO (KGO) — The Hermes antitrust case did not get very far in court on Thursday.

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

Judge James Donato said he read with interest the proposed class action antitrust lawsuit against luxury retailer Hermes but admitted he had difficulty understanding how it violates antitrust laws.

The lawsuit alleges that Hermes tied the purchase of its popular Birkin bags to the purchase of other ancillary products, such as belts and scarves. The lawsuit states 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 market where consumer choice is very much a factor.”

RELATED: When You Don’t Buy a Birkin Bag, Luxury Brand Hermès Files a Lawsuit: Here’s a Closer Look at the Case

He also told the plaintiffs’ lawyers: “You will have to explain how competition is being negatively affected.”

Judge Donato continued: “No customer said they were pushing a Hermes belt on me, but I really wanted a Prada belt.”

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

He also suggested that the business model is pro-competitive because anyone who does not want to participate in that competition can buy luxury bags elsewhere.

The plaintiff’s attorneys asked to amend the lawsuit and return in three weeks.

Hermes’ attorneys and employees did not appear in court to comment to ABC7 News.