Read the following passage and answer the questions.
Gender-based pricing, also known as “pink tax,” is an upcharge on products traditionally intended for women which have only cosmetic differences from comparable products traditionally intended for men. In other words, it’s not actually a tax. It’s an “income-generating scenario for private companies who found a way to make their product look either more directed to or more appropriate for the population and saw that as a moneymaker,” explains Jennifer Weiss-Wolf, a lawyer, vice president for the Brennan School of Justice at NYU School of Law, and co-founder of Period Equity.
Yet pink tax is not a new phenomenon. The issue was delineated more finely in 2015 when the New York City Department of Consumer Affairs released a report about price disparities for 794 comparable products from 91 brands sold throughout the city. The report examined five different industries, such as personal care products or senior/home healthcare products. These encompassed 35 product categories, such as bodywash or shampoo. In every single of those five industries, consumer goods marketed to women and girls cost more. The same was the case in all but five of the 35 product categories. Researchers looked at 106 products in the toys and accessories category and found that, on average, those intended for girls were priced 7 percent higher.
NYC’s report found women faced an average price difference of 13 percent for personal care products among the 122 products compared in the study. And the authors aptly noted that these items, such as shaving gel and deodorant, are the ones purchased most frequently compared with other categories — meaning that the ____________ add up over time. While this is unfair for all those shopping for these products, that 13 percent price increase hits women and girls who come from lower income households even harder. Legislative attempts, however, could correct the pink tax. In 1995, then-Assemblywoman Jackie Speier successfully passed a bill that forbade gender pricing of services, such as haircuts.
According to the passage, which of the following statement is FALSE?
Correct Answer :
The impact of the "pink tax" is confined to a select range of product categories of the study.
Solution :
To identify the FALSE statement, we examine each option using the information provided in the passage:
1. The New York City report encompassed five different industries and analyzed 35 product categories.
The text states: "The report examined five different industries, such as personal care products or senior/home healthcare products. These encompassed 35 product categories, such as bodywash or shampoo." Since the numbers match, this statement is TRUE.
2. Jackie Speier successfully passed a bill that prohibited gender-based pricing for services.
The text states: "In 1995, then-Assemblywoman Jackie Speier successfully passed a bill that forbade gender pricing of services, such as haircuts." Thus, this statement is TRUE.
3. The impact of the "pink tax" is confined to a select range of product categories of the study.
According to the passage, the price disparities were found in "every single of those five industries" and in "all but five of the 35 product categories" (meaning 30 out of 35 categories). Because the upcharge is prevalent across almost all the categories studied, stating that it is confined to only a "select range" is incorrect. Therefore, this statement is FALSE.
4. The "pink tax" is a pricing strategy employed by private companies within a capitalist framework.
The passage describes it as an "income-generating scenario for private companies who found a way to make their product look either more directed to or more appropriate for the population and saw that as a moneymaker." This confirms the statement is TRUE.
Therefore, the false statement is that the impact of the "pink tax" is confined to a select range of product categories of the study.
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