Macy's to pay $650,000 in shopper-profiling probe

ALBANY, N.Y. - The retailer Macy's has agreed to pay $650,000 to settle allegations of racial profiling at its flagship store in Manhattan's Herald Square.

Under the agreement with New York's attorney general, the company will adopt new policies on police access to its security camera monitors and against profiling, further train employees, investigate customer complaints, keep better records of detentions and report for three years on compliance.

Attorney General Eric Schneiderman says this addresses more than a dozen recent complaints of profiling and false detentions of shoppers and should help ensure customers are treated equally regardless of race or ethnicity at the retail giant's 42 department stores statewide.

Macy's said Tuesday its policies strictly prohibit discrimination, it will initiate enhanced training and it has settled in principle lawsuits related to the allegations.