A recent blog post about gendered-pricing lamented the fact that American women had to pay more than men for similar goods and services.
The Jezebel post by Tracy Moore referenced a 2011 study that indicated that women paid up to $1 351 (R14 302,16) more than men annually because of gender-based pricing. Deodorant, hair products, razors, haircuts and insurance, amongst other things, all cost more for women.
Naturally it had to be checked if the same held true for South African women.
Having gone to a Pick n Pay, Spar, Checkers and Game, it can be confirmed that men’s and women’s products that performed the same function, were from the same brand, with the same mass, and similar ingredients, cost exactly the same.
Three local hairstylists agreed that most hairdressers in South Africa charge by hair length, regardless of gender.
The only controversial part of the research was insurance, and not in the way it is expected. When it comes to insurance, men pay more.
A single woman (23) with a 2006 Ford that resides and works in a residential area, asking for third party, fire and theft insurance cover can get quotes from seven different companies with the lowest premium at R150. A male with the exact same information can only get one quote (ironically from 1st for Women), with a premium of R275.
A single woman with a house in Georginia, with contents worth R135 000, no alarm and no previous break-ins can get household insurance with a lowest premium of R283. Her male counterpart’s lowest premium is R431.
A non-smoking, single woman (23) requiring life cover worth R200 000, with a monthly income of R12 000 and no other dependents can get an insurance premium of R96. Her male equivalent can get one for R109.
The age and marital status categories were altered to see if it was less discriminatory. It wasn’t.
A married female smoker (44) requiring cover worth R200 000, and a monthly income of R14 000 could pay a premium of R136. The male would pay R180.
Insurance is based on risk assessment and men supposedly pay more on their premiums because, statistically, they tend to engage in more risk behaviours, are involved in more accidents, and have a shorter life -span.
Non-white men, statistically, engage in more risk behaviours, are involved in more accidents, and have a shorter life expectancy than their white counterparts. Yet, one is not required to state their race when asking for a quote.
One could only imagine the uproar if non-whites were charged more than whites simply based on stereotypes. Even if those stereotypes are statistically sound.
There is no need for insurers to use sex as a determining factor. Just as they don’t use race.
Risk analysis should be based on the factors that can be changed. Â Income, residential area, type of car, health (do you exercise/smoke/drink), employment. For a lot of people it would be very difficult to move to a safer area just to get a lower insurance premium, but it can, theoretically, be done. Â No-one can change their sex or race.
According to the Consumer Protection Act, consumers have the right to “Equality in the Consumer Market and Protection against Discriminatory Marketing Practices”. In other words consumers have the right to fair pricing, and they should be treated equally irrespective of sex, race, socio-economic status or location.
Perhaps the most important part of the Consumer Protection Act is the right to lodge a complaint. Contact the Gauteng Consumers Affairs on 0860 428 8634 or email consumer@gauteng.gov.za. For more information visit www.ecodev.gpg.gov.za/ConsumerAffairs/Pages/ConsumerAffairs.aspx
