‘Pink Tax’ Now Banned in New York State
As a new fiscal year has begun, there is now a 'pink tax' ban in New York State.
According to a press release from Governor Andrew Cuomo, the pink tax ban in New York State went into effect on Thursday, October 1, 2020. The pink tax is charging different prices for basically the same products or services that are marketed to different genders. This went into effect at the start of the 2021 fiscal year.
The press release states that the retailers, suppliers, manufacturers, or distributors are not allowed to charge a price for two "substantially similar" products, goods, or services under the new mandate if the price difference is based on which gender the product is for. If this is violated, businesses can be subject to civil penalties.
Under the new law, a substantially similar good is defined as "two goods that exhibit little difference in the materials used in production, intended use, functional design and features, and brand." Goods are defined as "any consumer product used, bought, or rendered primarily for personal, family or household purposes." According to the press release, a substantially similar service is "two services that exhibit little difference in the amount of time delivering, difficulty, and cost in providing the service." Services are any consumer services used, bought, or rendered for personal, family, or household purposes.
According to the press release, violators of the new law are subject to a court-ordered enjoinment of such sales, restitution to consumers, up to a $250 fine for the first violation, and up to a $500 fine for continuing violations.
In the press release, Governor Cuomo said, "By abolishing the pink tax, women and girls will no longer be subject to harmful and unfair price discrimination and any businesses who fail to put an end to this despicable practice will be held accountable."