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Gender pricing: should women pay more for services such as hairdressing?




Echo Issue Outline 1999 / 42: copyright © Echo Education Services
First published in The Echo news digest and newspaper sources index.
Issue outline by J M McInerney


What they said ...

'If I charge the same price for women as I do for men, I'll go broke' Hairdresser, Edward Beale
'... if it's a basic trim, the same as a man would have, there shouldn't be a price difference' Complainant, Ms Amanda Atkins


On October 11, 1999, Ms Amanda Atkins, 23, made a formal complaint to the Equal Opportunity Commission, claiming she had been discriminated against because of her gender. Ms Atkins had been charged $56 for a hair cut at Edward Beale's Toorak salon. On the same day, at the same salon, a man had received a very similar hair cut and been charged $38. Those opposed to the price difference maintain that the Equal Opportunity Act prohibits gender-based discrimination in the provision of goods and services. Supporters of the different pricing regimes argue that they are not the result of gender discrimination.

Background
Gender pricing is not specifically illegal in Victoria. Its critics claim that it is effectively made illegal by provisions of the Victorian Equal Opportunity Act.

It has been taken up as an issue in recent years by a number of consumer affairs organisations, including the Consumer Law Centre of Victoria. Amanda Atkins is being represented before the Equal Opportunity Commission by lawyer Chris Field, who is the director of the Consumer Law Centre of Victoria. In the United States, gender pricing appears to be an issue which has attracted more consumer and legislative attention. It is specifically illegal in some states and counties.

There is a large number of Internet sites containing material on this issue.
A good place to start is with the Victorian Equal Opportunity Act 1995 (amended 1998). The Act can be found at http://www.dms.dpc.vic.gov.au/l2d/E/ACT00904/3_0.html
One of the bases on which discrimination is illegal under the Act is sex or gender
This is a lengthy Act. The division which is of particular interest is division 4, dealing with Discrimination in the provision of goods and services and disposal of land
Section 42 deals specifically with the provision of goods and services and states
'A person must not discriminate [including on the basis of sex] against another person--
(a) by refusing to provide goods or services to the other person;
(b) in the terms on which goods or services are provided to the other person;
(d) by subjecting the other person to any other detriment in connection with the provision of goods or services to him or her.'
The Act does however allow a number of exceptions where gender is allowed to influence how a person is treated. Currently, gender influenced pricing for services such as hairdressing are neither treated as an exception nor specifically banned.

The Consumer Law Centre of Victoria is a non-profit organisation which was set up in 1992. Its apparent aims are to promote public awareness of consumer issues and where necessary to alter pricing, supply and quality control practices and the laws which govern them.
The Centre's home page can be found at http://home.vicnet.net.au/~clcv/welcome.html
One of the Centre's 'priority issues' is gender pricing. One of their publications is a 1996 study titled 'Do women pay more?'
A brief abstract of summary of this study can be found at http://home.vicnet.net.au/~clcv/pub.html#do
Amanda Atkins is reported to have approached the Consumer Law Centre in August, 1999, to complain about gender pricing at hairdressers. The Centre is then said to have chosen Barrister Simon McGregor to have his hair cut with Amanda because of the general similarity in their styles. The Edward Beale salon was apparently chosen because 'of all hairdressers that charge differential prices, his are among the highest'.

An interesting treatment of gender pricing from a United States perspective can be found on Contact 4's subsite.
Contact 4 is a consumer affairs news unit within KRONbay Community News, San Francisco. It claims it 'investigates and solves consumer problems, exposes scams and rip-offs, and provides useful information and resources'.
Its treatment of gender pricing can be found at http://www.kron.com/nc4/contact4/stories/gender1.html
Part one treats gender pricing by dry cleaners and laundries and examines the Californian law which prohibits this. Part two looks at gender pricing by hairdressers.
The article is titled Gender Pricing and went to air on April 25, 1996. The treatment is generally critical of gender pricing.
In January, 1996, California became the first American state to specifically ban gender pricing. However, Contact 4 claims that many businesses are not abiding by the law. It further notes, 'No state agency is in charge of making sure businesses comply with the law. So if you've been a victim of gender price discrimination, it's up to you to take the case to small claims court.'

An overview of the legislative situation in the United States is given in an article titled N.Y.C. [New York City] Joins Fight to Equalize the Cost of a Clean Shirt.
It was published in the Christian Science Monitor on January 9, 1998, and can be found at http://www.csmonitor.com/durable/1998/01/09/us/us.5.html.

A treatment of the issue from a different perspective can be read on The National Clothesline. This is a monthly publication produced by the United States Drycleaning Industry.
On May 8, 1996, The National Clothesline published an article titled Price Dilemma Goes Federal US Rights Commission schedules June 14 briefing.
Though not supporting gender pricing this article presents the issue from the drycleaning industry's position and includes a list of recommendations to members from the Mid-Atlantic Cleaners and Launderers Association (MACLA). These recommendations are intended to allow drycleaners or laundries to charge appropriately for services without being open to accusations of gender pricing.
The article can be found at http://pond.com/~hhorning/news/pricepita.html


Arguments in favour of women paying more for services such as hairdressing
The first claim made in support of women being charged more for services such as hairdressing is that women often have different requirements to men and so are being supplied with a different service.
According to this line of argument, where services such as hairdressing are being supplied, women are more particular and require a higher quality of service.
This point has been made by hairdresser Edward Beale who, referring to working on women's hair, has claimed, 'it is ... a different commodity.'
A similar view has been expressed by Julius Freeman, who has his hair cut at an Edward Beale salon. Mr Freeman has stated, 'Women are slightly more fastidious about their hair, and men are more laissez-faire about it. Women are really fussy.'
It has been argued, as an extension of this, that styling women's hair frequently takes more time than styling men's hair because women have more definite expectations as to what they require.
Relatedly it has been suggested that most women have more hair than most men and so their hair cuts are likely to take longer. However, it has further been argued that the difference in the price that is frequently charged for styling a woman's hair compared to a man's is not simply the time one takes relative to the other.
Edward Beale has claimed, 'It's not necessarily about time ... it's a skills factor.'
According to this line of argument, the hairdresser who works on a woman's hair should be able to charge more than when working on a man's because a greater variety and level of expertise is required to style women's hair.
It has also been argued that for many women, going to a hairdressers is more than about having their hair styled.
According to this line of argument, for some women a hairdressers or beauty salon should provide them with a sense of being pampered.
This point has been made by Herald Sun commentator Sally Morrell.
Ms Morrell has noted, 'A session at a top-price hair salon ... gives you an hour or so of pure luxury. You get to sit in big, comfortable lounges reading the latest glossy magazines while you wait to be "done". Then you get a totally pampering hair wash and a style from someone who knows what look is in and what look is out ... As much fun as dinner and a movie and you get to come out looking a bit better than when you went in.'
Those who put this argument maintain that at the more expensive salons, the total experience of having one's hair done is a different thing for a woman than it is for most men.
It is further suggested that this experience of luxury is something for which some women willingly choose to pay extra. It is further claimed that the question of pricing for men and women's hair styling is a matter of responding to market preferences not of discrimination.
According to this line of argument, if a hairdresser clearly advertises that his services for women are more expensive than those he offers men, yet women still frequent his salon this cannot be regarded as discrimination. Rather, it has been suggested, women are choosing to pay more for what they perceive as a different service.
This point has been made by Sally Morrell who has stated that Edward Beale's brochures and price boards make the price difference between men and women's services very clear.
Ms Morrell has further noted that there are many salons which charge the same rate for styling men's hair as they do for women's. Therefore, she argues, women are free to choose a cheaper cut if they wish to do so. When they deliberately choose to pay more, she maintains, the responsibility is theirs.
In addition it has been argued that as women form the bulk of the customers, especially at the more expensive salons, it is necessary to charge them as much as they are willing to pay if these salons are to remain in business.
This point has been made by Edward Beale, who has claimed that his Toorak salon attracted about 800 female and 200 male clients each week.
Mr Beale has stated, 'If I charge the same price for women as I do for men, I'll go broke.'
Finally, the point has been made that gender related pricing does not simply affect women. Men, it has been noted, pay more for motor vehicle insurance because they are statistically a greater risk than women.
The general argument in support of gender pricing appears to be that where a person's gender actually affects the type of goods or services they receive then it is not discrimination for producers or suppliers to charge them accordingly.

Arguments against women paying more for services such as hairdressing
The main argument offered against women being charged more than men for services such as hairdressing is that this practice is discriminatory.
According to this line of argument, where the difference in the cost of a service is based on no more than the fact that it is a woman who is receiving the service then this is unjust.
Those who hold this view maintain that if it takes the same length of time and degree of skill to give a woman a certain type of haircut as it does to give that haircut to a man then they should pay the same price for the service.
This point has been made by Ms Amanda Atkins, who has lodged a complaint against Edward Beale's Toorak salon.
Ms Atkins has stated, '... if it's a basic trim, the same as a man would have, there shouldn't be a price difference.'
This point has also been made by The Herald Sun in an editorial published on October 12, 1999.
The editorial states, 'Most people would agree that it is reasonable to expect that the charge should be the same for equal work, regardless of gender.'
Critics of gender pricing do not object to price differences where a different service is being supplied.
This point has been made by Ms Atkins, who has stated, 'If a woman gets a fancy, complicated style, yes, I understand she should pay more.'
It is suggested that price differences should be based on fair and objective criteria such as the level of skill required to supply a particular service and the length of time it takes.
The Herald Sun's editorial of October 12, 1999, puts this position.
The editorial states, 'Hairdressers should start charging by the hour.'
The same point has been made by The Age in its editorial of October 14, 1999.
This editorial claims, 'A haircut is a haircut, whatever the sex of the person beneath it.
A hairdressing service should be priced according to the complexity of the task and the length of time taken to complete it, not according to the gender of the customer.'
It has further been argued that not only is gender pricing unfair in principle, it is also illegal.
This point has been made by Mr Chris Field.
Mr Field is the director of the Consumer Law Centre of Victoria and is representing Ms Atkins before the Equal Opportunity Commission.
Mr Field has stated, 'The Equal Opportunity Act makes it illegal to discriminate in the provision of goods and services on the basis of sex alone.
We think this is a very clear case of discrimination and we want it stopped.'
It has further been claimed that gender pricing which discriminates against women is particularly inequitable as women are generally less well paid than men and so are less able to afford to pay more for services.
The general point has been made that it is because women are generally less welthy and less influetial than men that they are charged more for some goods and services.
This point has been made by The Age in an editorial published on October 14, 1999.
The editorial states, 'American psychological studies suggest power in the marketplace is linked to a person's perceived social standing ... [It has been found] that black women had the least bargaining power in negotiations and so paid the highest prices. White men were accommodated with the best deals.'
It has further been claimed that discriminatory practices are not confined to hairdressers.
It has been suggested that drycleaners, car dealerships and banks, in the provision of credit facilities, all sometimes appear to discriminate against women.
Finally, it has been argued that this issue is not one that affects only women. Critics of gender pricing are also opposed to men being charged more or treated less favourably purely on the basis of their gender.
Ms Anne Hall, co-convenor of the Women's Electoral Lobby, has stated, 'If someone felt they were being discriminated against on the basis of gender, whether they are males or females ... they should feel the Victorian Equal Opportunity Commission is an avenue to hear their complaint.'

Further implications
It will be interesting to note what ruling the Victorian Equal Opportunity Commission makes with regard to Ms Atkins complaint. Whatever the final ruling, the mere fact that Ms Atkins has made the complaint and that it has received substantial publicity is likely to affect many hairdressers' pricing practices. It is also likely to affect some women's willingness to continue paying higher prices for essentially the same service.
What is likely to be the effective outcome of this issue is that many hairdressers will start itemising the different components of their services, so that it is clear that a customer is being charged according to the type and quality of the service he or she has received, not according to their gender.
This appears to have been one of the consequences of anti-gender pricing legislation in the United States.
It may be that the Equal Opportunity Commission will actually require all service providers who charge different rates for different genders to demonstrate in their promotional material that these price differences are based on the quality of the service, not the sex of the customer.
The Consumer Law Centre of Victoria has indicated that it sees the current case as the start of a wider campaign and that it will challenge instances of gender pricing wherever it finds them.

Sources
The Age
11/10/99 page 4 news item by Darrin Farrant, 'Hair salon accused of pricing by gender'
12/10/99 page 4 news item by Darrin Farrant, 'Tonsorial tariff splits hairs on sex and labor'
12/10/99 page 8 news item by Sue Cant, 'Chat is cheap if you're a chick'
13/10/99 page 3 news item by Farah Farouque, 'Women's lib doesn't reach the shopping mall'
13/10/99 page 16 letter from Leisha Browning, 'The right to be charged equally'
14/10/99 page 16 editorial, 'Female customers are being clipped'

The Australian
12/10/99 page 3 news item by Nicole Strahan, 'It's a cut and dried landmark legal case'

The Herald Sun
11/10/99 page 9 news item by Fiona Hudson, 'Hair cutter sued over price snip'
12/10/99 page 9 news item by Fiona Hudson, 'Hair tizz at cut prices'
12/10/99 page 18 editorial, 'Keep your hair on'
15/10/99 page 21 comment by Sally Morrell, 'A snip at half the price'

Who Weekly
25/10/99 page 47 news item by Karina Machado, 'Cut and tried'