Definition: “Pink tax” refers to the additional amount imposed on certain products or services that are marketed specifically to women. These products and services may include shaving items, soap, lotion, deodorants, and haircuts.
How does the pink tax work?
The “pink tax” is a term that indicates the extra amount charged for some products or services that are marketed specifically to women. These general products, such as razors or deodorants, can be used by both men and women, but those aimed at women tend to be more expensive. The pink tax results in women paying more for similar – and often identical – products and services that men use.
When a company manufactures or sells a product, they may choose to price it slightly higher because it is targeted at women. In most cases, the difference between these products and similar products for men is very minimal. The difference may be something as simple as color or packaging design. The pink tax makes it more costly for women to purchase what they need for their daily lives. For example, according to JPMorgan Chase investment bank, the pink tax costs women an average of $1,300 annually.
Examples of the pink tax
For instance, in a pharmacy, you might notice that some razors might be pink and feature a woman on the packaging, but they are essentially the same razors that are blue and have a man on the packaging. This marketing strategy is used to entice some individuals to purchase certain products over others. In doing so, products marketed towards women are more expensive.
Among the products that can be used by any gender but may be more expensive when marketed to women are: soap, lotion, shampoo, deodorants, laxatives, clothing, toys, and travel supplies.
The phenomenon of the pink tax dates back at least to the 1990s when a report from the research office of the California State Assembly indicated that 64% of stores in several major cities charged higher fees for washing and cleaning a woman’s blouse than a man’s shirt. This issue has garnered national attention and prompted various attempts to enact regulations to eliminate the pink tax.
In a study conducted by the New York City Department of Consumer Affairs in 2015, researchers examined 35 product categories that impose extra charges on women. The New York City Department of Consumer Affairs found that women’s products cost more 42% of the time, while men’s products cost more 18% of the time.
It is important to note that the pink tax is not an actual tax, but rather a discriminatory pricing practice based on gender.
Is the pink tax legal?
The pink tax is technically legal in most states. New York is the only state that has imposed a ban on the pink tax. In April 2020, former Governor Andrew Cuomo signed a proposal to ban the pink tax, which took effect on September 30, 2020. The measure requires designated service providers to offer price lists for standard services and to inform them that price discrimination based on gender is prohibited by state law. If companies violate the law, they are subject to civil penalties.
While the pink tax is still legal and present in some states, the Pink Tax Repeal Act is an attempt to ban it. The Pink Tax Repeal Act was introduced in April 2019 by Representative Jackie Speier and again in June 2021, which would make it illegal for companies to charge higher prices based on gender for products and services.
Given that there are supporters for the Pink Tax Repeal Act, and since New York has placed limits on the pink tax, there is a chance that the pink tax could ultimately become illegal in every state.
Items
The Pink Tax Explained
The pink tax can be applied to a variety of products and services, and beauty and health-related products are the most common.
In March 2022, The Balance analyzed products to determine how much their costs increase due to the pink tax. According to the analysis, products cost 13% more when marketed to women due to the pink tax. The Balance looked at the prices of the following products: razors, deodorant creams, shaving creams, shaving devices, hair care products, body wash, lotions.
According to the analysis by The Balance, razors marketed to women cost significantly more than other products, approximately 25% more than those marketed to men. Lotions were the item most equally priced.
The pink tax can also be seen in products and services marketed to girls, not just adult women. According to a report by the New York City Department of Consumer Affairs, clothing marketed to females costs an average of 4% more than clothing marketed to male children, and toys and accessories cost an average of 7% more.
Warning: Next time you go shopping, look at the prices of all items to determine if you’re paying a higher amount for a single product just because it’s marketed to women. If there is no difference between the product marketed to men and that marketed to women, you might consider buying that product and saving some money.
Pink Tax vs. Tampon Tax
The pink tax is another additional charge that affects women and is often confused with the tampon tax. While the pink tax refers to a variety of women’s products that are more expensive than comparable products for men – and is not an actual tax – the tampon tax is the sales tax imposed on sanitary pads, tampons, and other feminine hygiene products. There are only five states with no sales tax.
Many states impose a sales tax on menstrual products, which women consider essential. The amount of sales tax varies from state to state and depends on the tax law in each individual state.
Frequently Asked Questions (FAQs)
Why is there a pink tax?
The pink tax exists because companies can set the prices of their products. If a company believes that consumers will buy the product even though it’s more expensive than similar ones, they may choose to do so. The pink tax comes into play when a product is pricier and specifically marketed to women, even though it can be used by any gender.
How much is the pink tax?
There is no specific price difference when it comes to products that are subject to the pink tax compared to those that are not. However, studies have shown that the pink tax can cost women up to $1,300 annually. Other studies found that women pay more for products 42% of the time. Some prices may be higher by 50 cents while others may be several dollars higher – and this can add up over time.
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Sources:
– JPMorgan Chase. “The Problematic Pink Tax: Our Specialists Weigh in on Gender-Based Pricing.”
– HuffPost. “7 Weird Examples of How Women Pay More Than Men for the Same Products.”
– Official California Legislative Information. “Assembly Committee on Judiciary.”
– New York City Department of Consumer Affairs. “From Cradle to Cane: The Cost of Being a Female Consumer.”
– New York Department of State. “Former Governor Cuomo Reminds New Yorkers ‘Pink Tax’ Ban Goes Into Effect Today.”
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Congress.gov. “H.R.2048 – Pink Tax Repeal Act.”
– Congress.gov. “H.R.3853: Pink Tax Repeal Act.”
– California Legislative Information. “Assembly Bill No. 1287.”
– Period Law. “Food or Tampons? No One Should Have To Choose.”
– Joint Economic Committee, United States Congress. “The Pink Tax How Gender-Based Pricing Hurts Women’s Buying Power.”
Source: https://www.thebalancemoney.com/what-is-the-pink-tax-5202741
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