Open Access Research Article
DECODING THE PINK TAX IN INDIA: CORPORATE RATIONALIZATIONS AND CONSUMER AWARENESS
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Article Details
DECODING
THE PINK TAX IN INDIA: CORPORATE RATIONALIZATIONS AND CONSUMER AWARENESS
AUTHORED BY - AISHWARYA
SAREEN & SUMIT
ABSTRACT
The
Pink Tax is the extra charge that is paid for goods and services aimed at women
even when they are like or identical to?those offered to men. This has been a
topic of wide?debate across the world but remains largely ignored in India.
While the businesses cite product differentiation, branding strategies, and
consumer willingness to pay as the rationales for gender-based pricing, the
vast majority of Indian consumers – women in particular – are oblivious to
these underlying price disparities,?leading to an unquestioned economic burden.
This
study analyses the corporate rationale for charging gender-based pricing,
assesses the consumer awareness levels in?India, and analyses the possibility
to regulate Pink Tax through legal provisions. The analysis?of international
standards and their applicability in the Indian context reveals the socio
economic implications of this practice and suggests measures like the
strengthening of consumer protection laws, mandating price transparency and the
formulation of gender neutral pricing regulations.
This
article enables a discourse on equitable economic practices, gender based price
discrimination and financial burden on women.
Keywords: Pink Tax, gender-based pricing, product
differentiation, gender neutral pricing regulations, consumer awareness
INTRODUCTION
Pink
Tax is an undisclosed financial burden in which items and services aimed at
women are priced higher than those intended for men, despite limited
differences. [1]This
form of pricing based on gender is commonly seen in personal hygiene products,
clothing, and services such as haircuts and dry cleaning.[2]
While
extensively discussed in Western countries, India is still in the early stages
of acknowledging this issue. Women are inadvertently spending more on
necessities like razors and deodorants because of unjust pricing practices.
The
elimination of GST on sanitary napkins brought attention to gender-based
pricing concerns, yet broader dialogues are lacking in policy frameworks. This
paper investigates corporate rationales for gender-based pricing, evaluates
consumer awareness in India, and delves into legal frameworks to combat the
Pink Tax. Through an analysis of pricing strategies, consumer behaviour, and
international models, the study aims to propose solutions for more equitable
economic policies.
CORPORATE
JUSTIFICATIONS FOR GENDER-BASED PRICING
Businesses
often justify gender-based pricing by citing disparities in production,
marketing, and consumer behaviour as driving factors for cost discrepancies
between men’s and women’s products. These reasons, nevertheless, are still
hotly debated, as they often do not?take into consideration the financial toll
this takes on women shoppers. The most significant justifications given by the
corporations for this price policy are the following:
1.
Product Differentiation
Companies cite modifications that are uniquely
applied to women’s products to justify?the different pricing policy. These
modifications or factors are unique formulations like added vitamins or use of
organic components added with fragrances or premium?aesthetics. Additions such
as pastel packaging or floral designs are other factors. But studies suggest
that?these differences tend to be minimal or even cosmetic, making it difficult
to rationalise the major price differences. [3]
For instance, Women razors are costlier than men
razors despite of same number of blades and same material, just a different
colour and brand. Similar trends hold across multiple product categories,
financially straining female?consumers.
This poses the question of whether or not price
increases actually reflect increased production?costs or are just a marketing
strategy to charge women more for the same products.
2.
Packaging, Design, and Branding
Another?argument for this pricing is that women’s
products have more intricate packaging and designs, which companies say
increases the cost of production. Pastel colours, flowers patterns, sleek,
aesthetically appealing packaging are
used to pack women’s products, while a?men’s product has an overall simpler, and
minimalist design.
One such example is shown in a study done in the
U.S. that found disposable razors for women are often priced higher than that
of men’s razors, even when the blade technology is nearly the same. The only
real point of differentiation was the colour and design of the handle — women’s?razors
often marketed with pink or pastel-coloured grips. Similar trends have been
noted in India[4],
where personal care items targeted to women cost more than similar products for
men, despite only negligible functional?differences.
3.
Market Segmentation and Consumer Psychology
Businesses justify such price differences by a
market segmentation argument, assuming that women are ready to pay a premium
for?beauty and wellness products. Research shows that when it comes to these
departments women care about the quality, branding and aesthetics. [5]Therefore, companies price their goods?higher based
on the consumer perception of what they will pay and not the real cost of
production. The women are uniquely targeted through this approach and thus
economically disenfranchised as many will arguably have no judiciously?priced
alternative that does not once again play on a gendered consumer psychology.
4.
Higher costs of Marketing and Advertising
Companies spend more on?marketing women’s products,
claiming that the higher prices are a result of increased advertising and
promotional costs. The beauty, fashion and personal care industries have
traditionally relied on a mix of celebrity endorsements, social media influencers
and aspirational advertising to connect?with female consumers. Consumers pay higher prices as this additional
marketing?cost is passed on to them.
Marketing costs can differ according to the target
audience. However, any comparison must recognise that the degree of price
difference between men’s and women’s products typically outstrips the
difference in advertising costs incurred, rendering utterly?difficult to
validate any differences in price on these grounds.
5.
Justifications by Service Industry
Service industry, too follows gender-based pricing
asserting women service requires more?time & resources. Salons charge
higher rates for women’s?haircuts, even when asking for a simple trim like a
man. Dry cleaners defend charging more for women’s clothing, arguing its
delicate fabrics?and ornate designs.
Although these reasons may craft their way into some
of the cases, they do not fill the gaps when the same service is offered to?both
men and women. Lack?of standard pricing results into conflicting and often
unreasonable price differences in the cost of service.
CONSUMER
AWARENESS OF THE PINK TAX IN INDIA
Even
with a significant presence of gender-based pricing in the country, awareness
about Pink Tax is notably low?among the Indian population. Consumer advocacy
groups actively campaign against discriminatory pricing in countries like the
US, whereas in India there?seems to be less of a discourse on the issue. Indian
consumers lack awareness due to the following factors:
1.
Awareness Levels
The majority of Indian consumers claim not to have
heard of the Pink Tax, according?to studies. According to a consumer report,
only 23% of Indians are aware of the term, with 31% women?holding opinion that
gender-based pricing is an economic issue while others dismissed it as a
marketing strategy[6].
12% of men know about this as?well. This indicates that most consumers pay no
mind?to the reasoning behind gendered products and simply pay the increase in
price.
2.
Public Response and Social Media Trends
Even with low awareness, gender pricing has become a
topic?of discussion in India. In fact, it was the same 2018 movement against
12% GST on?sanitary napkins that resulted in taxation being removed, proving
that public pressure is an incredibly policy changing factor in India. [7]Social media activism also helps, with?influencers,
journalists and advocacy groups calling attention to price disparities on
Twitter, Instagram and YouTube. Online price comparisons also illustrate
differences in pricing between?genders. But, these conversations are still
sporadic, lacking?sustained focus from the media and policymakers alike.
3.
The Role of Consumer Protection Laws
There is no specific law in India dealing with
gender based pricing under consumer?laws. India does not have an explicit legal
framework unlike other western nations that have established consumer boards or
laws to:
·
Investigate and regulate gendered
pricing in retail?and services
·
Require?clear pricing schematics on
gendered products.
In the absence of a legal?vigil against the Pink Tax
as unfair trade practice in India, the available legal recourse for the Indian
consumers aggrieved by gender-based price discrimination seems limited.
4. Economic
and Cultural Factors
There is poor awareness levels and narrowed public
dialogue in India regarding pink tax due to following socio-economic factors:
• Financial priorities:
In the Indian context, the affordability factor
outweighs the?gender-based price difference, as Indians are more concerned
about making a purchase generally rather than stipulating the fairness of
pricing.
• Household financial control:
Due to patriarchal structures, men control the
financial decisions in most Indian families, which restricts women from
questioning?or comparing prices for the product they want to purchase.
• Lack of price comparison habits:
When?Indian consumers seldom compare gendered
products side by side, it is tough to pinpoint price disparities.
POTENTIAL LEGAL FRAMEWORK FOR INDIA
The Pink Tax is rampant in India and with no laws
available to deal with it has made its eradication difficult. has become quite
important Thus, in order to block?gender-based price discrimination, relevant
laws must be introduced to combat such a situation. Even though, the government
has periodically tried to remove gender biases over economic disparities in
different?sectors, the issue of unequal pricing remains unregulated. Without
the legal groundwork, efforts to abolish the Pink Tax would be limited to
changes made at?the corporate level with variable compliance.
1. Amendments to the Consumer Protection Act, 2019
The Consumers Protection
Act, 2019 is an act that protects the?interests of the consumers against unfair
trade practices in India. However, it does not specifically?prohibit
gender-based price discrimination. Unless a corresponding amendment to the Act
is brought within which a provision declares the Pink Tax as an unfair trade
practice, there?would be nothing to deter such unscrupulous businesses from
taking advantage of such gendered marketing strategies. legislation would
impose fines on companies that partake in?such actions and give consumers a
legal tool to make complaints. A?robust Act could also require businesses to
provide justifications for any differences in price between men’s and women’s
products, thereby curbing arbitrary and discriminatory pricing.
2. Price Transparency Requirements
The Businesses still sell
expensive items targeted towards women without consumers realising it, showing
that there is a lack of transparency when?it comes to pricing. As a solution,
the government may implement mandatory?regulations on businesses to disclose
the pricing structures and cost justifications of gendered products and
services. Competitors should be required to show a price comparison of
equivalent products offered to men and women so that?consumers can know what a
product costs and choose accordingly. Also, in service industries, price lists
(salons, laundries, gyms, etc.) must clarify that rates depend on the
complexity of the service and?not on gender. Transparency laws would allow
regulatory agencies to watch & challenge unfair pricing practices &
allow?consumers to insist on a fair deal.
3. Inclusion in GST Policies
Tax policies are critical?when
it comes to affordability of products,&in many cases women and products
marketed toward women are taxed at higher rates. Even after the public outrage
forcedIndia to eliminate GST on sanitary napkins, different women-only products
such?as razors, deodorants, and even personal care items are being taxed at a
higher rate than the products for men. A legal framework to curb Pink Tax must
involve tax exemption or lesser GST rates on?essential women products.
Government might?establish a uniform tax policy, which discards discrimination
in taxation on identical products marketed to various genders. This would
guarantee that?basic goods are available and affordable for all consumers.
4. Regulatory Oversight by Consumer Protection
Authorities
To implement legal provisions against
gender-based?pricing, an independent regulatory body or a specialised division
within the Ministry of Consumer Affairs could be formed. The said regulatory
body will be responsible for investigating complaints against the Pink tax,
doing market surveys for getting pricing patterns and data, and for keeping a
check on the adherence to the fair pricing rules.
Also, the regulatory bodies could further introduce
guidelines for the corporations and build the best practices for pricing
products and services in lines with the gender-neutral measure. This step towards setting up an independent
regulatory body will make the corporations liable for their discriminatory
pricing practices and improvise enforcement mechanisms.
5.
Consumer
Awareness Campaigns
The Pink Tax cannot be eliminated solely through legal
reforms, but must be coupled?with large-scale consumer awareness initiatives.
Most consumers still have no idea that they are being?charged extra due to
gender-based pricing tactics. Government agencies, NGOs,?social media
influencers can create awareness programs to make consumers aware of the Pink
Tax and their rights. Promoting transparency and awareness?of gender-based
price disparities across industries and empowering consumers with knowledge can
lead consumers to make informed purchasing decisions and report examples of
unfair pricing. Moreover, consumer rights education could also be part of the
school curriculum so that future generations would learn to spot?discriminatory
pricing practices and challenge them.
CHALLENGES
IN ELIMINATING THE PINK TAX
We
cannot get rid of?Pink Tax because of loopholes in a law, the way the market
functions, and the societal norms. Not having explicit legislation means
businesses can engage in?gender-based pricing unchallenged. However, industries
generally oppose regulation with the claim that price?differentials are due to
variations in product design and the cost of marketing. Demand?for change is crushed
by low consumer awareness, and then cultural norms make premium pricing for
women’s products seem normal.
Another
challenge that India faces is low levels of research and studies that are being
conducted on the pink tax. There is very low data related to pink tax and its
application. As of now, it is not clear that which products and services are
being taxed and what is the amount of tax that is being charged under this pink
tax. Moreover, given limited?studies on gender-based pricing in India, it makes
formulating policy difficult.
CONCLUSION
The
Pink Tax is a hidden yet significant economic burden on women in India,
reinforcing financial inequality through seemingly minor but consistent price
disparities. [9]These disparities might seem small but is consistent
which is alarming. Although companies cite factors such as market strategy,
product differentiation and branding as the justifications for?gender-based
pricing, these factors do not fully explain the often alarming price
discrepancies seen in certain industries. This pink tax and discriminatory
pricing policy has persisted because of less recognition by the legal system
and low consumer awareness in India.
However,
the pink tax could be eradicated by implementing certain laws and recognising the price disparities
legally. Also large scale consumer awareness campaigns must be conducted so
that people get aware of this tax and challenge it. Also, this movement towards
the end of the pink tax becomes crucial as India is moving towards gender equality
which must also include financial equality. There must be a collective effort
from the law makers, the government and the people in recognising this pink
tax, understanding its impact and eradicating it.
RECOMMENDATIONS
India
needs legal reforms, regulatory measures and awareness initiatives to remove
the Pink Tax. This should be coupled with laws that prohibit
gender-based pricing, amending the Consumer Protection Act to classify
gender-based pricing as an unfair trade practice. Independent price audits of
fairness in pricing will also ensure accountability. Key steps towards reform
are providing incentives for gender-neutral pricing, encouraging consumer
awareness of gender-discriminatory?practices, engaging businesses for voluntary
compliance. Above all, the most important reform needed for the removal of the
Pink tax is better research and data collection related to the products and
services which are being taxed along with the amount of tax that is
being charged. This data will significantly aid the legislatures to draft the
statute or amend the provisions of current laws.
[1] Sonali Biswas et al., Attitude
towards Pink Tax in the Indian Population: A Gender-Based Analysis, 18 INDIAN
J. PSYCHOL. 1204, 1204-1215 (2024),
https://ijip.in/articles/attitude-towards-pink-tax/.
[2] Svasti Pant, UnPinking
Discrimination: Exploring the Pink Tax and its Implications, INT’L J. POL’Y
SCI. & L. 1367, 1367-1380 (2021), https://ijpsl.in/wp-content/uploads/2021/03/UnPinking-Discrimination-Exploring-the-Pink-Tax-and-its-Implications_Svasti-Pant.pdf.
[3] Unilever Case Study, The “Pink
Tax” and Gender Price Disparity in Personal Care, 4 GENDERS 83, 83-95 (2024),
https://www.mdpi.com/2673-8392/4/3/83.
[4] Is It Expensive to Be a Woman:
Pink Tax, JUSCORPUS (Mar. 31, 2023),
https://www.juscorpus.com/is-it-expensive-to-be-a-woman-pink-tax/.
[5] Grace Wishart, Mark Ching-Pong
Poo, Katherine Baxter & Yui-Yip Lau, The “Pink Tax” and Gender Price
Disparity in Personal Care, RESEARCHGATE (2024),
https://www.researchgate.net/publication/383484893_The_Pink_Tax_and_Gender_Price_Disparity_in_Personal_Care.
[6] Pink Tax: Examples, Definition,
and Impact on Women’s Finances and Society, WISHFIN (Oct. 17, 2023),
https://www.wishfin.com/articles/pink-tax-1607/.
[7] A Study to Assess the Attitude of
Female Population Towards Pink Tax Across India, RESEARCHGATE (2024),
https://www.researchgate.net/publication/380295075_A_study_to_assess_the_attitude_of_female_population_towards_pink_tax_across_India.
[8] Pradheepa V., Pink Tax: An
Analysis on Constitutional Background, 4 INDIAN J. APPLIED L. & RES. 3,
3-15 (2024),
https://ijalr.in/volume-4-issue-3/pink-tax-an-analysis-on-constitutional-background-pradheepa-v/.
[9] Rethink Economics, The Economic
Aspects of the Pink Tax, RETHINK ECONOMICS (Nov. 10, 2022),
https://www.rethinkeconomics.org/blog/2022/11/10/pink-tax-in-india/.
Article Information
DECODING THE PINK TAX IN INDIA: CORPORATE RATIONALIZATIONS AND CONSUMER AWARENESS
Authors: AISHWARYA SAREEN, SUMIT
- Journal IJLRA
- ISSN 2582-6433
- Published 2025/03/29
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
- Access Open Access
- License CC 4.0
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