According to Bank of America, women control only about 33% of the world’s wealth even though they comprise 51% of its population. That inequity is due to several factors, including a form of price discrimination called “pink tax.”
Bottom Line Personal asked Janine Rogan, CPA, founder of The Wealth Building Academy, for some pink-tax examples and suggestions for fighting back.
What is pink tax?
While the term pink tax can refer to sales taxes on items such as menstrual products (which imply they are not necessities), it has another meaning—the widespread practice on the part of manufacturers and retailers of charging women more than they charge men for identical or equivalent products.
Pink-tax examples
Disposable razors marketed to women typically cost more than those marketed to men, even when there’s literally no difference between them (except in the packaging and perhaps the color of the product). The same goes for many other personal-care products such as shampoos, lotions and soaps, as well as for clothing and accessories.
The very same tee-shirt you see in the boys’ section will cost more in the girls’ department simply because it appears there in a more feminine color. Over-the-counter painkillers cost more when labeled “for menstrual cramps” despite being the same formulation as the ones marketed for general pain.
In general, a woman tends to pay 20% to 50% higher prices for these and other products than a man. The State of California estimates that over a lifetime, the average woman will pay $188,000 in pink tax over the course of her life.
Is pink tax legal?
Yes and no. Some jurisdictions, such as New York and California, have passed anti-pink-tax legislation, but enforcement is extremely difficult. It’s easy for vendors to claim that a product marketed to women is materially different from one that is marketed to men…or to claim that it’s not being marketed specifically to women at all.
How to get around pink tax
Unfortunately, pink tax will persist until it is addressed at the systemic level. In the meantime, be skeptical about products labeled “for women.” Check labels carefully. Scrutinize product quantities—for-women versions often are smaller. Use price-comparison tools. Look in the men’s section for the same products at lower prices.
