Know Your Rights: Attorney General Bonta Encourages Consumers to Speak Out on Pink Tax Violations

Gender-based price differences for similar consumer products are illegal in California

OAKLAND - Today, on Women's Equality Day, California Attorney General Rob Bonta issued a consumer alert, reminding Californians of their rights under AB 1287, which 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" when used to charge women higher prices than men for essentially the same goods. On average, products marketed to women cost 7% more than those marketed to men and as much as 13% more for personal care products. AB 1287, authored by Assemblymember Rebecca Bauer-Kahan (D-Orinda), went into effect on January 1, 2023, and is enforceable by Attorney General Bonta. If you have seen or been a victim of gender-based price differences that you believe violate the law, please file a complaint at oag.ca.gov/report.

"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."

"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 to impacts for their own financial wellbeing as well as that of their families. This also exacerbates the already-existing gender gap in financial inequality," said Assemblymember Rebecca Bauer-Kahan. "Around 80 percent of product volume is gender-targeted. This type of arbitrary gendered pricing has no place in California. Closing these unnecessary and burdensome gaps is an important step toward gender equality."

"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," said Darcy Totten, Interim Executive Director of the California Commission on the Status of Women and Girls. "The Commission is proud to have cosponsored 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. We are grateful to Attorney General Rob Bonta for issuing a Consumer Alert to help ensure that women and girls in our state know their rights as we collectively remove one of the last pillars of commercial gender discrimination to ensure women equal access to products without paying a "tax" for their gender."

In passing California's Pink Tax Law, the Legislature cited considerable evidence of the existence of the "Pink Tax," including a 2015 study showing that girls' or women's products cost more than similar products for boys or men 42% of the time.

Some examples of products where gender-based pricing may be found include:

• Toys and accessories (e.g., pink vs. red bikes and scooters, pink vs. blue helmets, arts and crafts)
• Children's clothing
• Adult clothing
• Personal care products (e.g., hair care products, razors and razor cartridges, lotions)
• Senior/home health care products (e.g., personal urinals, supports and braces, canes)

AB 1287 does not prohibit charging different prices for goods that are seemingly alike, but different for reasons that do not have to do with gender-based marketing. These reasons include differences in:

• The amount of time to manufacture the goods
• Difficulty of manufacturing the goods
• Cost incurred to manufacture the goods
• Labor used to manufacture the goods
• Materials used to manufacture the goods

Women make up as much as 85% of consumer purchases in the United States - they also face higher prices for seemingly neutral products like mortgage rates. Compounded by the gender pay gap, unequal pricing translates into unjust and harmful financial impacts for women and their families. Wealth inequality disproportionally affects women and women of color. Women earn approximately 82% of what men earn. For every 1 dollar earned by white men, Latinx women earn 65 cents. AB 1287 disrupts this cycle by holding those who still charge the Pink Tax accountable. Because the Attorney General has enforcement authority for violations of California's Pink Tax Law, it is important that we hear from the public about potential violations of the law.

If you have seen or experienced gender-based price differences that you believe violate the law, please file a complaint at oag.ca.gov/report.

For more information on AB 1287, California's Pink Tax Law, please visit oag.ca.gov/ab1287.

A copy of the consumer alert can be found here.

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