The issue of price discrimination based on race is a precursor from what was a social and political engineering to marginalise the majority of South Africans. Simply put, Apartheid policies were developed in such a way as to ensure that Black South Africans never actualised the development of their people. A quarter of a century into democracy; the fight to cross over the poverty line is still a dream that is yet to manifest for many South Africans.
Though price discrimination is a matter that deserves its own constituency, not much is known about the impact that this has on consumers that form part of the lower and middle-class of society. Most black consumers living below the poverty line (and most likely dependent on government grants) bear the brunt of price inequality. Urgency needs to be placed in addressing the inequalities that monopolistic price discrimination has towards pricing structures in South Africa.
Loosely defined price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets and different locations. These issues very differently, rely on monopoly power, including market share, product uniqueness, and sole pricing power. According to economists, price discrimination is broken into three segments: first-degree, second-degree, and third-degree price discrimination.
First-degree price discrimination: the seller knows and charges the maximum possible price every buyer is willing to pay. This creates a perfectly efficient market. Second-degree price discrimination: The seller charges different prices based on either the quality or quantity. Like discounts for bulk purchases (quantity) or charging more for first-class seats (quality). Third-degree price discrimination: The seller charges buyers different prices depending on their market segment, e.g. age, profile, income group, time of use, or even race. This is legal except in certain circumstances like race or religion-based discrimination. The segregation of the pricing strategies is used by corporations that have monopolies in their respective fields. What this does is benefit their pockets whilst the discriminated consumer, mostly black people, unknowingly suffers.
Right The Law hopes to assist in legalising the playing field with relation to pricing structures- this will ensure fair economic participation by all in society. Moreover, financial burdens will be eased amongst black people who are dependent on government grants.
As Right The Law we shall litigate for legislative change on price discrimination based on race. We call on all like-minded individuals that desire to see meaningful change around this issue to support Right The Law. The wound of one is surely the wound of all. Let us help the South African majority obtain the opportunity to a better standard of life.
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We invite all interested parties, organisations, and individuals to join our movement. To support our causes in righting the law and turning the tide. Be part of history. Let us unite our voices.
Forward. As one. We turn the tide.