Senate Commerce Committee Statement to Senate, No. 2039 — State of New Jersey (March 11, 2021)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2039, State of New Jersey, dated March 11, 2021, reporting the bill favorably. The bill prohibits businesses in New Jersey from gender-based price discrimination, described as the "pink tax" or "gender tax," for services and for substantially similar consumer products from the same manufacturer. Tailors, barbers or hair salons, and dry cleaners and laundries would have to post pricing for each standard service in no less than 14-point boldface type, and businesses would display a sign in no less than 24-point boldface type. A violation is an unlawful practice under the consumer fraud act, P.L.1960, c.39, punishable by a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2039

STATE
OF NEW JERSEY

DATED: MARCH
11, 2021

The
Senate Commerce Committee reports favorably Senate Bill No. 2039.

This
bill prohibits businesses in New Jersey from engaging in gender-based priced
discrimination. Commonly referred to as the “pink tax” or “gender tax,”
gender-based discrimination occurs when products and services marketed and
intended for use by girls and women are priced higher than comparable products
and services for boys and men.

The
bill provides that a business in the State is prohibited from:

(1) discriminating
based on gender with regard to the price charged for a service offered by the
business; and

(2) charging
prices for any two consumer products from the same manufacturer that are
substantially similar, if those products are priced differently solely based on
the gender of the individuals for whom the products are intended or marketed.
For the purposes of the bill, two products would be considered “substantially
similar” if there are no significant differences in the materials used in the
products, the function of the products, and the functional design or features
of the products. A difference in color or packaging among consumer products
would not, by itself, be construed as a substantial difference.

The
bill specifies that its provisions would not be construed to prohibit price
differences based upon labor, materials, tariffs, or any other gender-neutral
reason, including when a retail establishment passes through a price to the
consumer that is set by a manufacturer, distributor, or other entity that is
beyond the retailer’s control.

Under
the bill, the following businesses would be required to clearly and
conspicuously disclose to the customer in writing the pricing for each standard
service provided:

(1) tailors
or other businesses providing aftermarket clothing alterations;

(2) barbers
or hair salons; and

(3) dry
cleaners and laundries providing services to individuals.

The
bill requires the pricing to be posted in an area conspicuous to customers.
Posted price lists are required to be in no less than 14-point boldface type
and clearly and completely display pricing for every standard service offered
by the business. Additionally, business are required to provide a customer with
a complete written price list upon request. The bill further requires
businesses to display in a conspicuous place at least one clearly visible sign,
printed in no less than 24-point boldface type, notifying customers that
gender-based price discrimination is prohibited under New Jersey law.

A
violation of the bill’s provisions is an unlawful practice under the consumer
fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). An unlawful practice is
punishable by a monetary penalty of not more than $10,000 for a first offense
and not more than $20,000 for any subsequent offense. In addition, a violation
can result in cease and desist orders issued by the Attorney General, the
assessment of punitive damages, and the awarding of treble damages and costs to
the injured.

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