New York Ban On “Pink Tax” Comes Into Effect
New York State has banned the ‘pink tax,’ charging different prices for “substantially similar” goods and services consumer goods or services based on gender, as of September 30, 2020. An example of a pink tax is when a dry cleaner charges a higher price to dry clean a woman’s dress suit than a man’s dress suit.
“Substantially similar” goods are goods without substantial difference in (a) the materials used, (b) the intended use, (c) the functional design and features, and (d) the brand. “Substantially similar” services are services without substantial difference in (1) the amount of time to provide the services, (2) the difficulty in providing the services and (3) the cost of providing such services. The law gives consumers the right to receive a written price list from any business that provides a service to ensure the price differences are not discriminatory.
The law outlines instances where a price disparity is permissible, such as when the difference in price is based upon the amount of time it took to manufacture such goods or to provide the services, the difficulty and cost in manufacturing the goods or offering the services, the labor or materials used in manufacturing the goods or providing the services, or any other gender-neutral reason for an increase in the cost. Violations of the law are subject to the court ordered enjoinment of such sales, restitution to consumers, up to a $250 fine for the first violation, and up to a $500 fine for any subsequent violations.