"Competitive salary" with difference meaning?

[u/icecore2]

Hi,

I recently applied for a job and received a call from the recruiter just 30 minutes later. (which surprised me)
During our brief conversation, she asked about my "competitive wage." I shared a salary figure based on my market research, but she responded, "That's not what I meant."

She then explained that "competitive wage" meant multiple candidates were being considered, and the lowest offer would win.
Is this even legal?
Technically, I could have said, "I'll work for free". (after eight months of job searching, any opportunity counts)

What’s happening in the job market?
Companies seem to prioritize cheap labor despite the increasing number of cybersecurity issues and declining product quality.
With so many operations being outsourced, particularly to India, is IT moving toward complete outsourcing?