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Friday, September 20, 2024

Attorney General Bonta issues consumer alert against "Pink Tax" practices

State AG
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Attorney General Rob Bonta | Facebook Website

California Attorney General Rob Bonta issued a consumer alert on Women’s Equality Day, emphasizing the illegality of gender-based price differences under AB 1287. The law, effective since January 1, 2023, prohibits businesses from charging different prices for substantially similar goods based on the gender of the product’s target audience—a practice known as the “Pink Tax.” According to Bonta, products marketed to women typically cost 7% more than those marketed to men and up to 13% more for personal care products.

“The Pink Tax is a sexist practice that is illegal in California. Women, especially Black and Latinx women, are paid less than their white, male counterparts in the same roles yet have to spend more than men to buy very similar products,” said Attorney General Rob Bonta. “California consumers have the right to shop without fear of discrimination. I encourage consumers to be aware of their rights under California’s Pink Tax Law and to file a complaint if they believe there have been violations of this law.”

Assemblymember Rebecca Bauer-Kahan (D-Orinda), who authored AB 1287, expressed support for Bonta's efforts: “It has been two years since the passage of AB 1287 and it is very exciting to see the work Attorney General Bonta is doing to guarantee consumers' rights under California’s Pink Tax Law. Unequal prices for women translate into impacts on their financial well-being as well as that of their families. This also exacerbates the already-existing gender gap in financial inequality."

Darcy Totten, Interim Executive Director of the California Commission on the Status of Women and Girls, stated: “Women are still earning less than our male counterparts, and the fact that some companies may continue charging more for a product simply because it is marketed to women is a sexist penalty that is now illegal. The Commission is proud to have co-sponsored AB 1287 to put an end to arbitrary price differences for everyday products and encourage anyone who has been a victim of gender-based price differences to file a complaint.”

The Legislature cited significant evidence when passing California’s Pink Tax Law. A study from 2015 showed that girls’ or women’s products cost more than similar products for boys or men 42% of the time.

Examples where gender-based pricing may be found include toys and accessories (e.g., pink vs. red bikes), children’s clothing, adult clothing, personal care products (e.g., razors), and senior/home health care products.

AB 1287 does not prohibit different prices for goods with justifiable differences unrelated to gender-based marketing such as manufacturing time or material costs.

Women make up approximately 85% of consumer purchases in the United States but face higher prices even for neutral products like mortgage rates. Combined with existing wage disparities—women earn about 82% compared to men—the impact on financial equality is substantial.

Consumers experiencing or witnessing potential violations can file complaints at oag.ca.gov/report.

For additional information about AB 1287 and California's Pink Tax Law, visit oag.ca.gov/ab1287.

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