Barneys settles racial profiling claim for $525K

Luxury department store Barneys New York has agreed to pay $525,000 to resolve allegations that minorities were singled out as suspected shoplifters at its flagship store in New York City, part of a spate of racial profiling complaints against major retailers last year.

Barneys shoppers and ex-employees alleged that security guards followed minority race customers around — even after staffers identified them as frequent patrons.

It was also alleged that minorities were disproportionately investigated for credit-card fraud – so much so that salespeople even avoided serving minority shoppers so as to avoid getting calls from store investigators, state Attorney General Eric Schneiderman said in announcing the settlement on Monday.

Besides the $525,000 in fines and expenses, Barneys will hire an "anti-profiling consultant" for two years, update its policy and record keeping on detaining customers suspected of theft, and improve training of security and sales personnel.

"This agreement will correct a number of wrongs, both by fixing past policies and by monitoring the actions of Barneys and its employees to make sure that past mistakes are not repeated," Schneiderman said in a release.

Barneys CEO Mark Lee said in a statement that the company was pleased with the settlement, first reported by the New York Daily News.

According to the newspaper, profiling started in March 2013, with the hiring of a new chief of security.

"Barneys New York has prided itself on providing an unparalleled customer experience to every person that comes into contact with our brand – open and welcoming to one and all," Lee's statement said.

The attorney general’s investigation came after Barney's shoppers Trayon Christian and Kayla Phillips, both of whom are black, said last fall they were detained by city police in separate incidents after making expensive purchases at the Madison Avenue luxury emporium.

Both Christian and Phillips have filed separate lawsuits against the NYPD. Neither case has yet been resolved.

The News reported that plainclothes NYPD police stopped Christian, 19, after he bought a pricey belt, accusing him of stealing, and Phillips, 21, after she purchased an expensive handbag, accusing her of credit-card fraud. 

Christian's lawyer noted on Monday that a review last fall – commissioned by Barneys – found the store did not have a written or unwritten policy to profile customers.

"We are pleased that Barney's has acknowledged their responsibility," said Christian's lawyer, Michael B. Palillo. "We are hopeful that this offensive and discriminatory conduct will finally come to an end."

Civil-rights activist Rev. Al Sharpton met with Lee to discuss the issue, and the furor spurred an online petition asking rapper Jay-Z, who was collaborating with the luxury retailer for a holiday collection, to disassociate himself from it.

He ultimately decided to move forward with the project, which raised money for his charitable foundation, under the condition that he helped lead the store's review of its policies.

Sharpton said in a statement Monday that Barneys' agreement with the attorney general was a "move in the right direction," but continued monitoring is needed.

Meanwhile, minority shoppers – including actor Rob Brown – made similar complaints last year against New York stores including Macy's, which paid a $600,000 fine and promised changes in 2005 after the then-attorney general made similar claims.

Al Jazeera and wires