Legal Definitions - economic discrimination

Economic discrimination refers to any practice within the realm of business and commerce where individuals, groups, or entities are treated unfairly or disadvantaged based on factors unrelated to their economic merit or behavior. This unfair treatment can manifest in various ways, such as denying access to goods, services, or opportunities, or imposing different terms and conditions, solely due to characteristics like race, gender, religion, origin, or other non-economic considerations. It can also involve actions by businesses to unfairly disadvantage competitors or specific consumer groups.

• Example 1: Discriminatory Access to Services

  A local dry cleaning business posts a sign stating it will not serve customers who are members of a particular political party, even if those customers are willing and able to pay for the services. This refusal is based purely on their political affiliation, not on their ability to pay or the nature of the service requested.

  This illustrates economic discrimination because the business is denying access to its commercial service (dry cleaning) based on a non-economic factor (political belief), rather than on the customers' ability to pay or adhere to reasonable business policies.

• Example 2: Predatory Business Practices Against Competitors

  A dominant national grocery chain opens a new store directly across from a long-standing independent local grocery store. The national chain then begins selling essential items like milk, bread, and eggs at prices significantly below its own cost, specifically in that location, with the clear intent to drive the smaller, local competitor out of business.

  This demonstrates economic discrimination because the large chain is using its market power to unfairly disadvantage a competitor in the commercial arena, not through superior efficiency or product, but by manipulating prices to eliminate competition and deny the smaller business a fair chance to compete economically.

• Example 3: Discriminatory Terms in Financial Services

  A car dealership consistently offers higher interest rates on car loans to female applicants compared to male applicants, even when both groups have identical credit scores, income levels, and down payments. The difference in rates is solely based on gender.

  This is economic discrimination because the dealership is imposing less favorable commercial terms (higher interest rates) for a financial product (a car loan) based on a non-economic factor (gender), rather than solely on the applicants' individual creditworthiness and ability to pay.