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Can I charge different prices to different customers without violating discrimination laws in California? What are the requirements?

Yes, businesses can charge different prices to different customers in California, but there are certain requirements that must be met to avoid violating discrimination laws.

Requirements for Charging Different Prices

  • Businesses may charge different prices based specifically upon the amount of time, difficulty, or cost of providing the services [1.1].
  • Different prices for different trading areas within a county shall be based upon natural geographical differences justifying the different prices, and shall not be established for special customers [2.1].
  • A seller may rebut the prima facie case of discrimination by showing that his lower price to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor and was also offered to any other of his purchasers in competition with the purchaser or purchasers receiving such lower price [3.1].

Posting Requirements

  • Certain businesses must clearly and conspicuously disclose to their customers in writing the pricing for each standard service provided [1.1][1.2].
  • The posting requirement applies to tailors or businesses providing aftermarket clothing alterations, barbers or hair salons, and dry cleaners and laundries providing services to individuals [1.2].
  • The price list must be posted in a place where customers will likely see it and it must be in no less than 14-point boldface font [1.1].
  • A business must also provide a written copy of the prices to the customer if one is requested by the customer [1.1].

In summary, businesses can charge different prices based on the amount of time, difficulty, or cost of providing the services. Different prices for different trading areas within a county shall be based upon natural geographical differences justifying the different prices, and shall not be established for special customers. Certain businesses must clearly and conspicuously disclose their pricing for each standard service provided. The price list must be posted in a place where customers will likely see it and it must be in no less than 14-point boldface font. A business must also provide a written copy of the prices to the customer if one is requested by the customer. [1.1][2.1][1.2][3.1].

Source(s):
Jurisdiction

California