Macy's Pays $650,000 to Settle Discrimination Claims

Macy's will pay $650,000 to settle allegations of racial profiling at its flagship Herald Square store. The settlement follows New York Attorney General Eric Schneiderman's 18-month investigation, which found Macy's security guards unfairly focused on black and Latino shoppers when looking for shoplifters.

Schneiderman said there were nearly two dozen complaints from black and Latino shoppers in 2013, and they all followed a similar pattern. "The security officer would approach them, ask them to come into a room off of the shopping floor, question them, and in the overwhelming majority of cases, there really was no basis of any kind," he said.

Macy's has also agreed to make policy changes, retrain staff, and hire an independent monitor to investigate customer complaints.

"They're going to keep records in a very different way. They're going to make the records accessible to us. They're also going to make their closed circuit television rooms accessible to external law enforcement officers -- very important -- so we can actually see and monitor what's going on," Schneiderman said.

Macy's said its policies prohibit discrimination and racial profiling.

Schneiderman would not comment on similar, ongoing investigations at other stores.

With The Associated Press