Gender Pricing

Caroline Dinenage Excerpts

Tuesday 2nd February 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Women and Equalities and Family Justice (Caroline Dinenage)]

It is a pleasure to serve under your stewardship, Sir Edward. I welcome the hon. Member for Edmonton (Kate Osamor) to her place—I look forward to working opposite her. I add my voice to those congratulating the hon. Member for Dewsbury (Paula Sherriff) on securing this important debate and on all her hard work and effort. This is a fundamental issue, and I have listened to all today’s contributions with enormous interest.

This is not a straightforward issue. It seems like a case of simple, unacceptable injustice, but the closer we get, the more complex it is. Many people here, and others in the press, have raised interesting and important points about the way that pricing structures can exploit women. The general public have also been active partners in this debate, and rightly so. They are asking whether there is a tax on womanhood in the British high street. I am pleased to hear from my right hon. Friend the Member for Basingstoke (Mrs Miller) that the Women and Equalities Committee will be considering this important issue. She has had to leave, but she and her Committee will display their normal tenacity and insightfulness.

I will first respond to the hon. Member for Dewsbury by explaining that this position is tricky because it slips between equality and consumer law, and I will then set out the more general implications for gender equality. The Equality Act 2010 provides that a retailer must not discriminate against a customer, either by failing to provide goods or services or by providing them on different terms, on the basis of someone’s gender. In the cases described in the research that we are discussing, retailers are not refusing to sell goods to female customers; in fact, I am sure that they are only too pleased to sell them, because they make more money doing it that way. Retailers are not applying discounts for men that they are not applying for women. We are all equally able to buy the same products. It is just that the ones marketed at women seem to be inexcusably higher in price. Goods and services that are in the high street can be bought by either sex at the same price, regardless of whom they are designed or marketed for. As long as the treatment is the same for both sexes, we are within the realms of equality law.

With very few exceptions, we do not operate price controls in the UK, and businesses are generally free to set their own prices on the goods that they sell to consumers. It is of course fundamental that businesses listen to their customers and any concerns that they have about pricing. It is very good news, and not a little ironic, that we are now beginning to hear from some of the major retailers that that is indeed what they are doing today. Responsibility for ensuring that markets operate competitively falls to the Competition and Markets Authority. Complaints of market failure need to be addressed to the CMA. I will be speaking to the CMA about this issue and I encourage everyone who has any evidence of this behaviour to do so, too.

There have been calls today for the Government to conduct an independent analysis of gender pricing. I am listening to those calls very carefully. It is important to understand that consumers are a very important priority for the Government. We need to have confident and well-informed consumers, because that drives effective markets and the UK economy. Only last October, the Consumer Rights Act 2015 came into force. It sets out a simple, modern framework of consumer rights. Consumers are also protected by the Consumer Protection from Unfair Trading Regulations 2008, which ban traders from engaging in unfair commercial practices against consumers—for example, giving them false or deceptive information or descriptions of products, or misleading them by leaving out important information that they need to help to make a purchasing decision.

What about the role of advertising that exploits gender stereotypes? Product advertising is controlled primarily by self-regulation. The Advertising Standards Authority has responsibility for ensuring compliance with “The British Code of Advertising, Sales Promotion and Direct Marketing”. The code is a body of rules by which the advertising industry agrees to abide. It requires all forms of advertising to be legal, decent, honest and truthful and prepared with a sense of responsibility to both consumer and society. The ASA says that it is happy to look into consumers’ concerns, and again I encourage anyone who feels concerned about the way products are advertised to speak to it.

When it comes to the law, it is important to consider whether we are talking about selling the same product at a higher price, or similar products aimed at different markets. If it is the latter, no laws are broken, yet it is absolutely valid to feel concerned at what is happening. Some people are asking: are manufacturers and retailers exploiting gender stereotypes to make women feel inadequate unless they pay a premium for products that implicitly or explicitly suggest that they are “for them”? That is the crux of the matter. Personally, I have a slight aversion to pink products that are specifically designed for ladies—maybe I am just a bit contrary like that.

The hon. Member for Dewsbury, who initiated this very important debate, has already given a number of examples of gendered marketing from recent years. Some of those have been largely met with ridicule. I do not know whether any hon. Members remember the stream of online reviews when a certain ballpoint pen manufacturer manufactured a lady’s version, in pastel shades. Hundreds of women went online to express their heartfelt gratitude. One said:

“My husband has never allowed me to write, as he doesn’t want me touching men’s pens…Once I had learnt to write, the feminine colour and the grip size (which was more suited to my delicate little hands)…enabled me to vent thoughts about new recipe ideas, sewing and gardening.”

I am sure that we can all sympathise with that. Men joined in with complaints that the delicate pens were too slippery for fingers calloused from a hard day’s shark wrestling, and that they hated the visions of fairies and rainbows that they got whenever they used those pens.

I have seen, as I am sure we all have, special women’s Sellotape, dental floss, earplugs, energy drinks and even blenders, as well as the women’s haircuts highlighted by the hon. Member for Falkirk (John Mc Nally). A personal favourite of mine is the men’s and women’s versions of unperfumed deodorant—because people might guess—and let us not forget that old favourite, man-sized tissues for man-sized noses.

However, there is a serious side to the issue, as hon. Members from all parties have pointed out. It is absolutely right that we empower consumers to ask whether there is a clear difference in the products and production costs, or whether the manufacturers believe that women can be persuaded to pay more than men. Consumers are within their rights to ask retailers to explain why. Why might a pair of women’s jeans cost more than men’s? Is it due to a larger range of different fits, lengths, colours, types of stitching and qualities of denim, or is it just that they are particularly marketed towards women?

I recently had a constructive meeting with the chief executive of the British Retail Consortium. She informed me that although the consortium is keeping a lookout for the issue, it has not been raised by BRC members. Helpfully, though, a number of retailers have contacted my office within the last few hours to discuss the matter. As my right hon. Friend the Member for Basingstoke and others correctly pointed out, Boots today corrected the price of disposable razors and eye roll-ons, Sir Edward, so we will be paying the same price for those in future.

[Sir Edward Leigh (in the Chair)]

Eye roll-ons? I don’t normally buy those.

[Caroline Dinenage]

Well, you might now. It seems that the power of the female consumer’s voice, once it is brought to public debates such as this, is starting to be heard. We encourage that, of course, and we encourage other retailers to take note. We heard from the British Retail Consortium that non-food prices have fallen continuously for the past 33 months, and that that may be in part because consumers are more informed than ever before. Long may that continue.

Another serious issue is the impact on children, which the hon. Member for Lanark and Hamilton East (Angela Crawley) mentioned. I know from my postbag that many parents are concerned about the impact of gendered marketing on children, which is compounded if, as we are discovering, there is a price differential too. Children learn through play, so it is important that they have access to a wide range of toys and interests, whatever their gender. So what if boys want to wear pink and girls want to play with train sets? At least, as we heard a couple of weeks ago, Barbie has finally put on a few pounds. That is something to make us all feel a bit better. That is why the Government are committed to supporting parents and teachers in raising the next generation of informed consumers by developing media literacy and resilience to restrictive stereotypes.

[Angela Crawley]

Perhaps if we removed gender from children’s toys, we might find that young boys and girls could aspire to whatever careers they chose. It might have a large role to play in that as well.

[Caroline Dinenage]

The hon. Lady is absolutely right. Only last week, I was at an event geared towards getting girls into science, technology, engineering and maths. Those sorts of initiative are so important. In order to correct the gender pay gap, which we have discussed, we need women to aim for those higher-paid careers.

The hon. Lady also raised the point that if we could get more women on boards, gender discriminatory decisions might not be made. I am pleased to say that we have made enormous progress on that under Lord Davies; the 25% target for women on boards of FTSE 100 companies has now been met, although we agree that more needs to be done to improve the executive pipeline. At the moment, less than 10% of people in the FTSE 100 executive pipeline are women. We have accepted his recommendations to establish a new review focusing on the executive layer of FTSE 350 companies. That is important to ensuring that the retail issues change.

I do not want to make a massive party political point out of this, but I gently say to the hon. Ladies who have spoken about how cuts have hit women hardest that a record number of women are in employment. We all want to see women in higher-paid employment, but that record number is a good thing. The female participation rate has increased by more since 2010 than it did during the previous three Parliaments combined. Women’s salaries are rising in cash terms. We are cutting tax for nearly 13 million women by 2017-18 and the gender pay gap is at its lowest level. No one should think I am in any way complacent about that. I know that there is still more to do, but we are dedicated to that.

As the Minister for Women and Equalities and Family Justice, I am happy to keep a very close eye on the issue raised today, but I fundamentally feel that is up to us all as intelligent, questioning consumers to demand an explanation from retailers and manufacturers for the different prices, if we have questions or concerns. Actions speak so much louder than words. While women’s voices must unite on this issue, it is even more powerful if women speak with the power of our purses. As a result of the growing debate on this issue, I know that more women will understand that they do not have to buy pink razors. The blue ones are just as good, and men are of course welcome to try the pink ones out if they wish, Sir Edward. I know that if the tables were turned, men would be proudly choosing pink earplugs if they realised that they cost a third less.

[Sir Edward Leigh (in the Chair)]

Does the hon. Lady wish to sum up?