What is Pink Tax?
Pink tax
refers to gender based price discrimination where women pay more than men for the
same products and services. In 2015 the New York City Department of Consumer
Affairs released a study comparing the prices of over 800 products which found
that products for women cost 7% more than the same products for men.
While in
India we do not have any such study, one can easily compare the prices of
equivalent goods and services and see the disparity. In 2018, the Government of
India was to levy 12% GST on menstrual sanitary products, which was slashed only
after a tireless campaign.
Pink Tax and Consumer Protection Act, 2019
While we
lament the apparent unfairness, we forget that women are “consumers” under the
Consumer Protection Act, 2019 (“Act”), and all consumers have certain rights.
Pink Tax – an Unfair Trade Practice
Section
2(47) of the Act defines “unfair trade practices” to include any statement
which makes a false or misleading representation concerning the need for, or
the usefulness of, any goods or services, materially misleads the public
concerning the price at which a product or like products or goods or services,
have been or are, ordinarily sold or provided.
It is
plain that marketing products for women as something better, or different, or of
more usefulness falls within the ambit of “unfair trade practices”.
Pink Tax and Misleading Advertisements
Section
2(28) of the Act defines “misleading advertisements” to include any
advertisement, which gives false description of a product or service, gives
false guarantee misleading the consumers, conveys express representation
constituting unfair trade practice and deliberately not revealing essential
information about the product.
Again,
marketing products or services meant for women as worthy of a higher price amounts
to misleading the consumer.
Recourse for the Aggrieved
Central
Consumer Protection Authority (“CCPA”) may initiate an inquiry into violations
of consumer rights or unfair trade practices either suo motu or on
receipt of a complaint or as directed by the Central Government. CCPA may conduct
a preliminary inquiry, followed by an investigation by the Director General or
by the District Collector, if required. It has also been empowered to file
complaints under the Act.
A
consumer may also file a complaint with either the District, State, or National
Commission as per the pecuniary jurisdiction.
Outcomes
If the CCPA,
or the relevant Commission finds violations of consumer rights it may pass
orders to recall goods or services; reimburse prices; and discontinue unfair
practices.
In cases
of false or misleading advertisements it may issue directions to discontinue
such advertisement or to modify it to neutralise its effects. It may levy a
punishment of imprisonment for a term which may extend to two years and a fine
which may extend to ten lakh rupees; and for every subsequent offence, there is
a punishment of imprisonment for a term which may extend to five years and a
fine which may extend to fifty lakh rupees.
