Gender Pricing

Helen Grant Excerpts

Tuesday 2nd February 2016 Westminster Hall

[Paula Sherriff]

Of course I welcome the news that Boots announced today that it will withdraw those items and charge a rate equivalent to that of men’s items. The onus is now on other retailers to do the same.

Some of the examples brought to light by The Times’ research are remarkable. Tesco charges double the price for 10 disposable razors simply because they are pink. In fact, standard razors for women cost, on average, a huge 49% more than the equivalent products for men. At Argos, identical children’s scooters are £5 more expensive in pink than in blue. Bic sells a range of “for her” ballpoint pens that are more expensive than its ordinary range, even though the products are almost entirely identical. Amazon sells a Playmobil pirate ship for £12.59, while the equivalent fairy queen ship, marketed at girls, costs £14.99. According to The Times, neither Amazon nor Playmobil will comment on the rationale behind that price gap.

The Times’ study follows a similar study conducted by New York City Department of Consumer Affairs in December. It compared nearly 800 products with clear male and female versions from more than 90 brands sold both in-store and online, and found that products for female consumers were more expensive than those for male consumers in all but five of the 35 product categories. Across the sample, the research found that women’s products cost more 42% of the time, whereas men’s products cost more just 18% of the time. The DCA report remarked:

“Over the course of a woman’s life, the financial impact of these gender-based pricing disparities is significant.”

In 1994, the state of California studied the issue of the gender-based pricing of services. It estimated that women effectively pay an annual gender tax of approximately $1,351 for the same services as men.

The Government must ensure that an independent analysis is conducted to identify the extent of unfair gender pricing and marketing practices in the UK. The full impact of gender differentials in pricing on women must be quantified. Women may pay thousands of pounds more over their lives to purchase similar products to men. Will the Minister commit to conducting such an analysis?

It could be argued that some products for women have additional design and performance features, and that others are priced individually based on factors including formulation, ingredients and market comparison. Of course, a women’s jumper might be made with better-quality fabric, and a men’s jumper might be made with cheaper material, but The Times’ study indicates that that is often not the case. Frequently, the only difference between the two products is the colour.

In 2012, Development Economics conducted research on gender-based pricing on behalf of the insurance provider Aviva. It found that women pay an average of £200 more per year than men for essentially the same consumer goods and services. The only difference is that the products are specifically designed for and targeted at the female market.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

Does the hon. Lady agree that many women do not have the time to go around shops comparing and contrasting prices? This smacks of retailers taking women for granted.

[Paula Sherriff]

I absolutely agree. There is a sense that exploitation is going on. It is fantastic that we are able to use this debate to bring these issues to the fore.

--- Later in debate ---

[Mrs Maria Miller (Basingstoke) (Con)]

It is a pleasure to serve under your chairmanship this afternoon, Sir Edward. I commend the hon. Member for Dewsbury (Paula Sherriff) for securing this timely debate. We should all be thanking The Times for its investigative skills in uncovering yet another form of sex discrimination that was, frankly, hiding in plain sight: the pricing of similar or the same products. Many women were clearly unaware that stores charge different prices for the same product depending on whether it is marketed at men or at women, and many people find this quite surprising. On a closer look, one can find similar research from France and in the United States. It is surprising that people experience such price differentials not only in the UK, or perhaps we should not be surprised because the manufacturers and retailers mentioned could well be those that have fallen foul of the research done elsewhere, France in particular.

When the report was published by The Times some 10 days ago, the Women and Equalities Committee, which includes my friend the hon. Member for Lanark and Hamilton East (Angela Crawley), happened to be meeting that day, and we immediately deemed it appropriate for the Committee to undertake a short investigation into the findings of this piece of journalism. We have written to several of the manufacturers and retailers cited in the report to ask for the rationale behind why they differentiate their pricing in this way. They could find themselves well out of step with their customers following the exposure of the findings, because there cannot be many customers who visit our supermarkets and expect exactly the same product, whether a razor or any other of the vast range of products put under the microscope, to be charged at a discount to men and a surcharge to women.

Having spent almost 20 years in advertising and marketing before I came to this place, I know first-hand that marketing departments and retail outlets are making such choices. It is not happenstance or a mistake; a conscious choice is being made to price the same products differently depending on whether it is expected to be bought by a man or a women. I cannot understand why that would be the case. Retailers and manufacturers need to explain themselves clearly and quickly. I do not think that the Government should get involved in this issue, because customers ultimately vote with their feet. If such organisations cannot explain themselves clearly enough, that is exactly what customers will do.

I welcome the swift action that Boots has taken in making right the pricing on two products that were part of The Times’ research, and I think it is undertaking to look further at the matter, which shows real responsiveness. I thank Tesco for the email I received a few moments ago, which, as the hon. Member for Dewsbury said, did try to explain its product pricing. That is the start of a conversation and certainly not the end of one.

[Mrs Helen Grant]

Does my right hon. Friend agree that this presents a great opportunity for retailers to get off the sidelines and play their full part in the battle for gender balance and fairness?

[Mrs Miller]

My hon. Friend is absolutely right. Gender stereotyping helps no one. It does not help women or men. As we go forward, people will be calling for a reduction in gender stereotyping and far more gender-neutral approaches to the products and services that they purchase.

I again commend the hon. Member for Dewsbury for securing today’s debate. I hope that she follows the work of the Women and Equalities Committee as we consider the evidence that we receive and decide what to do next. We may even invite some retailers and manufacturers to give oral evidence if we feel that there are further questions to ask. I thank her for her support in an important area of work for women’s equality.