The Pink Tax: A Litigation and Legislation UpdateWe previously reported on an emerging legislative and litigation trend relating to the “pink tax” – a gender-based pricing phenomenon that allegedly results in higher prices for goods and services marketed towards women as compared to substantially similar alternatives marketed towards men.  As predicted, the last two years have shown an uptick in litigation (which has been largely unsuccessful) and legislative action (some finalized and some pending).

Litigation

Last year, we discussed an early blow to the pink tax theory of liability in Schulte v. Conopco, d/b/a Unilever, et al.  In Schulte, the plaintiffs alleged that various personal care manufacturers and retailers violated the Missouri Merchandizing Practices Act (MMPA) by charging more for deodorants marketed for women than allegedly similar deodorants marketed for men.  The product lines at issue contained similar, but not identical, ingredients, came in different sizes, and were available in different scents (fifteen “feminine” scents in the line marketed for women and five “masculine” scents in the line marketed for men).  The Eastern District of Missouri dismissed the complaint, ruling that “Missouri law does not compel identical products to be sold at the same price” and that the plaintiff’s remedy “lies with legislation, not litigation.”  The Eighth Circuit affirmed on the grounds that the plaintiff mistook “gender-based marketing for gender discrimination.”  In order to state a claim, the court ruled that the plaintiff would have to allege that the only difference between the products was the price and the intended target of the marketing.  Here, because the plaintiff conceded that the products were, in fact, different, thus dismissal was appropriate.
Continue Reading The Pink Tax: A Litigation and Legislation Update

Ad Law Access Blog - the State of Maryland enacted legislation imposing the Digital Advertising Gross Revenues TaxOn February 12, 2021, the General Assembly of the State of Maryland enacted legislation imposing the Digital Advertising Gross Revenues Tax, overriding a prior veto of the legislation by Maryland Governor Larry Hogan. The Act imposes a tax, at rates of up to 10%, on gross revenues “derived from digital advertising services in the state.” 

At the end of 2019, Governor Andrew M. Cuomo released the 10th proposal of his 2020 State of the State Agenda, which aims to eliminate the so-called “pink tax,” a gender-based pricing phenomenon that allegedly results in higher prices for good and services marketed towards women as compared to substantially similar alternatives marketed

On Thursday, June 21, 2018, the U.S. Supreme Court paved the way for states to collect sales or use taxes from sellers with no physical presence in the taxing state by declaring constitutional a South Dakota law requiring out-of-state sellers to remit sales taxes on sales to South Dakota residents if the sellers exceed certain revenue or transaction thresholds.  In South Dakota v. Wayfair, Inc., 585 U.S.             (2018), the Supreme Court overturned its 1967 decision in National Bellas Hess, Incorporated v. Illinois, 386 U.S. 753 (1967) and its 1992 decision in Quill Corporation v. North Dakota, 504 U.S. 298 (1992), which had generally prohibited states from collecting sales or use taxes on sales of tangible personal property from sellers with no physical presence within the state.  The elimination of the physical presence requirement does not necessarily mean that out-of-state sellers now have substantial nexus with all states, however, and sellers should re-evaluate their tax collection and payment obligations on a state-by-state basis.
Continue Reading Selling Products Online? U.S. Supreme Court Ruling May Affect Whether or Not You Must Pay State Sales or Use Taxes