Vermont Business Magazine The Vermont Attorney General’s Office and the Vermont Human Rights Commission issued Guidance on gender-based pricing, which is the practice of charging different prices for goods or services based on the consumer’s gender. Gender-based pricing occurs right here in Vermont – from services such as haircuts and dry cleaning to goods such as personal hygiene products and children’s toys.
According to Attorney General Sorrell, “many Vermont businesses may not realize that they are engaging in illegal gender-based pricing, and many Vermonter consumers may not realize that they have been subjected to the unfair practice. We have produced the Guide to raise awareness and help eliminate all gender-based pricing in Vermont.”
A 2015 study produced by the New York City Department of Consumer Affairs found that similar products were priced the same for women and men only 40% of the time, women’s products carried higher price tags 42% of the time, and men’s carried higher price tags 18% of the time. The 2015 study referenced an earlier study which found that women pay a “gender tax” of approximately $2,191 more than men each year as a result of gender-based pricing.
Gender-based pricing violates Vermont’s Public Accommodations Act, which prohibits a place of public accommodation from treating people unequally based on, among other things, sex, sexual orientation, and gender identity. The Human Rights Commission is charged with enforcing the Public Accommodations Act. Executive Director Karen Richards said: “As a nation, more than 50 years after passage of the Equal Pay Act, we still have not reached pay equity for men and women. Here in Vermont, women make approximately 85 cents for every dollar earned by a man, are over-represented in lower paying jobs and under-represented in higher paying jobs. This ‘gender tax’ on goods and services exacerbates the pay inequity and further erodes the ability of women, particularly single women, to adequately support their families.”
Additionally, gender-based pricing violates Vermont’s Consumer Protection Act, which prohibits unfair or deceptive acts or practices in commerce. Attorney General Sorrell, whose office is charged with enforcing the Consumer Protection Act, said: “As the State’s primary enforcer of the Consumer Protection Act, I want to make it clear that gender-based pricing is an unfair practice in commerce. The Guide provides businesses with practical information on gender-based pricing and tips for eliminating the practice from existing pricing schemes.”
The Guide also offers information for consumers on what to do if they encounter gender-based pricing. Among other options, consumers are encouraged to file a Complaint with the Human Rights Commission. The Human Rights Commission will share all complaints with the Attorney General’s Office.
The Guide is available on the Attorney General’s website.