Gender Pricing

Paula Sherriff 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.

[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.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Lady on her very fine presentation, her compelling argument and the research she has done. Does she agree that for many women, particularly those on low incomes and those who depend on benefits, it is difficult to purchase the more expensive gender-based products?

[Paula Sherriff]

Once again, I completely agree.

If there is no discernible difference or advantage to purchasing a product designed for women, but the consumer is led to believe that there is, we must ask questions about advertising standards and whether consumers are able to make properly informed choices. What is it about a multipack “for her” ballpoint pen that makes it more custom-fit or specially designed for a woman? If female consumers are told that they should purchase a specific product because it is the only version suitable for women, when in fact there is no discernible difference in the product, it can be argued that they are being misled.

This debate raises concerns about the kind of choices and information available to female consumers when they make purchases and whether discriminatory practices are taking place, but we should also consider the worrying pattern of gender economic inequality under the Government. The UK gender pay gap currently stands at 19.2%—well above the EU average. Low pay and poor employment practices persist in sectors in which women are the majority of employees, including the care, retail and hospitality sectors. Analysis by the TUC found that more than half of the job growth for women since 2010 has been in low-paying sectors, and that 29% of women earn less than the living wage, compared with 18% of male workers. Women are paid less and are expected to spend more on products and services. They are charged more simply for being women.

Will the Minister agree to Labour’s calls for a cumulative gender impact analysis of the Government’s policies since 2010? If the Government will not do anything to tackle intrinsic gender economic inequality, they must at least not make matters worse. The recently published research raises numerous issues about consumer rights, fair advertising and gender economic inequality. Women are paid less but are expected to spend more on products that are often not discernibly different to the equivalent products for men.

In the absence of a Government gender equality strategy, I ask the Minister to respond to the following questions. Will the Government ensure that independent analysis and further study is conducted to identify the extent of unfair gender pricing and marketing practices in the UK? Will they seek to quantify the full cumulative impact of gender differentials in pricing for women? Will they meet the UK’s major retailers to identify what steps they are taking to rectify the situation?

Once again, I welcome the news that Boots has taken steps this afternoon to change some of its pricing, but I have just received an email from Tesco suggesting that its pink razors are significantly more expensive than the blue or black versions because they are produced in smaller quantities. I struggle to see how that justifies the extra cost. We need to meet retailers and have that discussion.

How will the Government discern whether gender pricing differentials amount to discriminatory practice? Will they produce a cumulative impact analysis of their policies on women since 2010 to understand the true extent of gender economic inequality in the UK?

--- Later in debate ---

[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.

[Paula Sherriff]

I was very proud to table the amendment in the House last year calling for the Government to attempt to renegotiate the rate of VAT on feminine hygiene products. We welcome their attempts to do that, but does the hon. Lady agree that we must see that they are putting this on an equal footing with their other EU negotiations and that they are not treating women as second-class citizens in this regard?

--- Later in debate ---

[Paula Sherriff]

Thank you, Sir Edward. I will sum up briefly. I thank all the contributors to today’s debate. It was refreshing to hear the spirit in which the debate was entered into, and to have representatives from four political parties. I pay special tribute to the hon. Member for Falkirk (John Mc Nally), who has joined us this afternoon.

The Women and Equalities Committee has a significant role to play in this issue going forward, and I welcome its investigation. I completely agree with the Minister that retailers have some questions to answer, but equally, the Government have a role to play, and I urge her to consider the analysis on the cumulative impact on women.

My hon. Friend the Member for Ealing Central and Acton (Dr Huq) made a powerful point about people power. We have seen that this afternoon, with the response from Boots. The hon. Member for Lanark and Hamilton East (Angela Crawley) made a powerful point about the need for more women MPs. The number is going up, but it is not nearly enough. I am proud to belong to a party that practises positive discrimination for women with all-women shortlists. Equally, there need to be more women on boards. I acknowledge the progress that has been made, but until we reach 50%, I will continue to champion the cause.

I thank my hon. Friend the Member for Edmonton (Kate Osamor) for her contribution. She made a valid point on advertising and the pressure on women to look and behave a certain way. I agree that we could definitely learn from some of the research that has been undertaken in America. Like many others, I will be watching the issue carefully. I hope that I can contribute going forward by speaking to retailers. Let us see some positive difference in this area.

[Sir Edward Leigh (in the Chair)]

Thank you to all those who have taken part in a most interesting debate. It was certainly an eye-opener for me.

Question put and agreed to.

Resolved,

That this House has considered gender pricing.