Barneys will pay $525,000 in fines and legal fees to settle a civil rights review over allegations that the store racially profiled its customers. The New York Daily News reported that the state and the company reached the deal on Monday.
As part of the deal, the store will also hire an anti-profiling consultant and improve the way it tracks and records theft-prevention efforts. "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," state Attorney General Eric Schneiderman said in a statement.
In the last few months Barneys has made its own efforts to recover from the profiling backlash. After Jay Z was pressured to back out of his collaboration with the company, the rapper was given a leading role in the company's review of its loss prevention methods. In November the store also began monitoring its in house detectives.
Schneiderman began his review last October after customers and former employees said the store's "loss prevention unit" engaged in racial profiling. Based on the store's own records, black and Hispanic customers were detained “at rates far greater than their percentage of the store’s customer base."
Last year two Barneys shoppers filed suits against the store after being accused of credit card fraud. Trayon Christian, 19, was accused of fraud after buying a $395 Ferragano belt last April, and Kayla Phillips, 21, said she was surrounded by four undercover detectives and accused of fraud after buying a $2,500 suede Celine purse.