Gender Pricing

Maria Miller Excerpts

Tuesday 2nd February 2016 Westminster Hall

[Paula Sherriff (Dewsbury) (Lab)]

I beg to move,

That this House has considered gender pricing.

It is a great pleasure to serve under your chairmanship, Sir Edward, for the first Westminster Hall debate I have secured in my own name. Right hon. and hon. Members on both sides of the House will have noted the research recently conducted by The Times that shows that items marketed at women are, on average, 37% more expensive than similar items marketed at men. It analysed hundreds of products marketed at men and women, and found only one example of a male item priced higher than a female item—boys’ underwear is more expensive than the equivalent for girls—but numerous examples of female items that cost more. Clothes, beauty products and toys for women and girls were found to cost more than the equivalent items marketed at men and boys. Such price differentials were found in some of the UK’s biggest retailers, including Tesco, Boots and Amazon.

[Mrs Maria Miller (Basingstoke) (Con)]

I congratulate the hon. Lady on securing this debate. Will she join me in welcoming the news that Boots has announced today that it will take action? It is withdrawing two products that it identified are priced in a sexist manner.

[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.

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[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.

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[Angela Crawley (Lanark and Hamilton East) (SNP)]

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Dewsbury (Paula Sherriff) on securing the debate. This debate is welcome because, surprisingly, it is the first debate on the topic in any Chamber of this House. However, I suspect that if men were paying the premiums that women are, there would be outrage on the Floor of both Houses, and in boardrooms, and perhaps action would have been taken before now. In fact, one of the primary arguments for why we should have more women represented in our Parliament and in our boardrooms is so we can ensure that someone is taking serious action.

The reality is that the gendering of products starts at an early age—pink for girls and blue for boys—and continues throughout our lifetimes. It includes everyday items such as perfumes, deodorants, razors and shaving cream, but it does not stop there. Studies suggest that women pay more for mortgages, insurance premiums and even cars.

I welcome the points raised by other hon. Members. The hon. Member for Dewsbury rightly pointed out that women pay 37% more than men for the same products, which seems ludicrous, yet it is a reality that has an impact on the incomes of women on low pay. The fact that 25% of women earn less than £10,000 a year should be a stark reminder to us that this is something that we should tackle in this House. Although it is the responsibility of retailers, we in Parliament and those in the Government have a responsibility to put pressure on retailers to take serious action.

[Mrs Miller]

Does the hon. Lady share my concern at the fact that just 9% of executive positions in big businesses in Britain are held by women? Does she think that, in some way, that may be part of the reason that these issues are not taken more seriously at a board level?

[Angela Crawley]

Absolutely. It is something that we have looked at closely in the Women and Equalities Committee. Across Parliaments—in Scotland and the UK—action needs to be taken. There is only so much that Governments can do but we need all companies of all sizes to take serious action to ensure that women are represented at every level of the organisation, and not just to have boardrooms full of men. I suspect that that is a large part of why we find ourselves having this debate.

I welcome the fact that Boots has withdrawn two of its lines, and I think Argos recently conceded that a pink scooter had to be repriced on the basis of the price of a blue scooter, but it seems ridiculous that we should have to point out such things and make such comments in a modern-day society.

Gender stereotyping does exist. The fact that I can plainly state that pink is for girls and blue is for boys is absolutely ridiculous. In a society where many people identify as non-binary or do not identify in clear gender stereotypes, why should we have products catering to that market? As the right hon. Member for Basingstoke (Mrs Miller) has previously pointed out, the reality is that this is marketing and it is what people are paying for. Unless we raise awareness of the issue, there will continue to be higher prices for products.

The Government can take action in one regard, in that female sanitary products are subject to VAT and are considered a luxury. Unlike Jaffa Cakes, sanitary products are not a luxury.

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[Angela Crawley]

Absolutely. The hon. Lady is a mind reader. My point is that sanitary products are not luxuries. Although I appreciate the difficulties that block the way to change with regard to EU legislation, I am sure that the Government can and must do more. Perhaps while the Prime Minister is renegotiating our position in the EU he could pay some attention to the gender inequalities that exist as well.

The regulation that appears to restrict us from removing the tampon tax has been in place since the 1970s, so this is not a new subject and it is surprising to me that it is only now coming to the fore. Issues such as the use or misuse of the terms “swarms” or “migrants” have become topical in discussions on the EU and yet, the topic of a tax on women has not been a serious issue for the Prime Minister to address, so I hope the Government will do so.

[Mrs Miller]

I thank the hon. Lady for picking that point up, and I am delighted that the Financial Secretary to the Treasury, my hon. Friend the Member for South West Hertfordshire (Mr Gauke), has already started to have these sorts of discussions. I commend him particularly for taking such a strong stand on this issue, and I am sure all our good wishes will be with him to achieve a successful negotiation.

[Angela Crawley]

Absolutely, I think it is in everyone’s interest that there is a successful negotiation. I am only sorry that it has taken so long for this conversation to happen at all, to be perfectly honest.

As has been cited, research conducted by the Fawcett Society indicates that 85% of the cuts have come at the expense of women. Whether we are talking about the welfare cap or cuts to carer’s allowance, women have borne the brunt of the austerity measures imposed by this Government. I say that not to politicise the issue, but simply to make the point that women are paying more than men for some decisions that are taken. The measures that require women to prove that they have been raped are also an abhorrent policy and something that must be addressed quickly and urgently.

The Government have forgotten women on many occasions, and although many actions have been taken by members of the Government to address those points, whether this is about gender pricing or gender-specific policies, we must do more to eradicate the inequalities that exist between men and women. We must do that, so that one day a little girl will not end up earning less than her brother, so that one day our sons and daughters will be equal, and so that one day a person’s gender will not determine how much pay they take home.

In conclusion, although I appreciate that it is the responsibility of retailers to take a lead and to continue to urge all Governments to tackle this issue, serious inequalities do exist between men and women, and I would like to hear what actions the Government plan to take to tackle gender inequality. Beyond rhetoric, there must be action.