HESAF - Hermès Lawsuit Attacks Luxury's FOMO Premium

2024-03-28 11:15:00 ET

Summary

• In a lawsuit filed last week, two California shoppers allege that the Hermès brand violates U.S. antitrust law by forcing customers for its much-sought Birkin handbags to first buy other items.
• If successful, the case could crimp Hermès’ fastest-growing segments and ultra-luxe goods’ mystique.
• Plaintiffs here will likely have to show that Hermès consistently enforces a policy of requiring unrelated purchases as a pre-condition to buying its top-tier bags and that this practice restricted competition for accessories.

By Breakingviews

The $274 billion luxury house Hermès International ([[HESAY]], [[HESAF]]) might be a little too exclusive. In a lawsuit filed last week, two California shoppers allege that the brand violates U.S. antitrust law by forcing customers for its much-sought Birkin handbags to first buy other items. If successful, the case could crimp Hermès' fastest-growing segments and ultra-luxe goods' mystique....

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