✅ 'Pink tax:' Gender-based price discrimination

Products at a Walgreens at Sunset & Vine in Hollywood. Photo by Fred Prouser, Reuters
Products at a Walgreens at Sunset & Vine in Hollywood. Photo by Fred Prouser, Reuters

By Ariel Gans

WHAT THE BILL WOULD DO

AB 1287, authored by Assemblymember Rebecca Bauer Kahan, an Orinda Democrat, would prohibit an individual or business from charging a different price for a product based on the customer’s gender. By banning this practice, this bill would eliminate the “pink tax,” which supporters call the additional costs to female consumers. Two products are considered “substantially similar” if they share a brand, as well as similar materials, functions and designs. The bill authorizes the attorney general to seek a court order to stop violations, and courts to impose a penalty of as much as $10,000 for first violations and $1,000 for each subsequent violation.

WHO SUPPORTS IT

Women’s rights organizations, nonprofits and political advocacy groups comprise the bulk of the bill’s supporters. The California Teachers Association wrote in a supporting opinion that higher prices for products marketed to women reinforces gender inequity. In turn, these messages reinforce gender-based stereotypes that are harmful to children, supporters say. The California Commission on the Status of Women and Girls added that the bill is necessary in order to “ensure women achieve parity.”

WHO IS OPPOSED

There are no groups in opposition on file.

WHY IT MATTERS

Studies have shown that women pay more for similar products, including deodorants, shampoos and, to a lesser extent, clothing. On average, products marketed toward women cost 7% more than similar ones marketed toward men, according to a 2015 study from the New York City Department of Consumer Affairs. Connecticut, Minnesota and New Jersey have also proposed “pink tax” legislation in the past year, and a federal bill was  introduced in Congress in June 2021.

GOVERNOR’S CALL

Newsom signed the bill on Sept. 27, as part of a package of legislation on equity for women. “These measures bring new transparency to tackle pay gaps, end discriminatory pricing of products based on gender and expand supports for survivors of abuse and assault,” he said in a statement.

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