Macy's, Barneys Probed After Racial Profiling Claims

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J. Countess/Getty ImagesNew York State Attorney General Eric Schneiderman
By Curtis Skinner

NEW YORK -- The New York state attorney general is investigating Macy's Inc. and Barneys New York Inc. after complaints from black customers who were stopped by police after making luxury purchases, a spokesman said Tuesday morning.

Attorney General Eric Schneiderman has set Friday as the deadline for the stores to turn over information about their policies for detaining and questioning customers based on race, according to letters sent to Barneys chief executive Mark Lee and Peter Sachse, Macy's chief stores officer.

Lee is meeting Tuesday with Reverend Al Sharpton at the Harlem headquarters of his civil rights group, National Action Network, to discuss claims of racial profiling by two Barneys customers.

"Attorney General Schneiderman is committed to ensuring that all New York residents are afforded equal protection under the law," Kristen Clarke, who heads the attorney general's civil rights bureau, wrote to Lee and Sachse in letters released Tuesday.

"The alleged repeated behavior of your employees raises troubling questions about your company's commitment to that ideal," according to the letters.

The Schneiderman probe was first reported by the Daily News tabloid in New York. %VIRTUAL-article-sponsoredlinks%Macy's and Barneys officials weren't immediately available for comment Tuesday morning.

Barneys and the New York City Police Department were named in a lawsuit filed by Trayon Christian of Queens. The lawsuit said police had detained him in April for two hours after he bought a $349 Ferragamo belt, and they then released him without charging him.

Kayla Phillips, a 21-year-old nursing school student, said she was surrounded by four undercover police officers in February after leaving Barneys with a $2,500 Celine handbag she had purchased.

Two Macy's shoppers have made similar complaints, including actor Rob Brown of HBO's "Treme," who said he was handcuffed and held for an hour after purchasing a $1,350 gold Movado watch for his mother, the Daily News said.

The fourth "shop and frisk" complaint was filed by Art Palmer, 56, an exercise trainer from Brooklyn. He told the Daily News that he was surrounded by police who demanded to see identification in April after he used his credit card to buy $320 worth of Polo shirts and ties.

New York's Civilian Complaint Review Board is investigating allegations of improper police stops of Palmer and Phillips, spokeswoman Linda Sachs said Tuesday.

In 2005, Macy's paid $600,000 to settle similar allegations that many of the chain's New York stores had targeted blacks and Latinos for particular scrutiny of theft, according to the New York Attorney General's office.

Crime statistics from the New York Police Department show grand larceny has risen 31.6 percent over the past two years in the Midtown North precinct, which includes Macy's flagship store in Herald Square, and is up nearly 4 percent in the Upper East Side's 19th precinct, which includes Barneys New York.

It's Time for a Shoppers' Bill of Rights
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Macy's, Barneys Probed After Racial Profiling Claims
In the wake of a number of high-profile cruise ship disasters, the cruise industry announced this week that it had approved a passengers' bill of rights. The document, which the industry says will be legally binding, mainly concerns passengers' rights in instances where a ship has become disabled.

It resembles a similar bill of rights for airline passengers that the Department of Transportation drew up in 2011. Those rules concerned procedures for dealing with lengthy tarmac delays, lost baggage, and similar issues.

That got us thinking: If cruise ship passengers and air travelers have their own bills of rights, why shouldn't shoppers?

Sure, visitors to retail stores typically don't encounter situations as maddening as being stranded on a floating hotel where the bathrooms don't work, or trapped in a cramped coach-class seat while their flight sits on a tarmac for hours. But the shopping experience is still riddled with frustrations, and less-savvy shoppers are often taken advantage of by dodgy pricing, pushy salespeople and inconsistent policies.

We'd love to see a self-policing effort by the industry to assure shoppers that they can expect certain standards of treatment when they walk into a store. Here are a few things we would include in a shopper's bill of rights.

When retailers run sales and coupons, they include fine print that limits what the deal actually applies to. In most cases, it's relatively harmless -- it defines the effective dates of the promotion, and may exclude select items like gift cards and jewelry.

But problems arise when retailers go totally overboard and try to exclude half the store. Department stores like Sears (SHLD) and Macy's (M) tend to hold sales that exclude dozens of brands from the discount, and earlier this year Guitar Center took some heat for a coupon that excluded more than 300 brands.

Sure, in a perfect world everyone would read and understand the fine print. But it's not unreasonable for someone to see "20 percent off everything" and assume that it applies to most of the merchandise in the store.

Photo: Consumer Media

It's bad enough when there's a ton of fine print in the ad. It's even worse when store employees are inconsistent about applying those terms.

The other day I was shopping at Banana Republic (GPS), which was having a 40 percent off sale. I found an item I liked and confirmed that it wasn't excluded in the fine print, but a cashier insisted that the discount did not apply. Only when I threatened to leave empty-handed did she check with a manager and apply the discount.

It's understandable that the price of certain big-ticket purchases -- cars, TVs, and so on -- will depend in part on your ability to successfully haggle down the price. But whether or not a store fairly applies the terms of a deal should not be contingent on your willingness to make a scene.

Photo: nichole.c,

It's not just the fine print on coupons that's often left to the interpretative whims of cashiers and associates. Corporate policies on everything from returns to price-matching are often poorly understood or selectively applied by front-line employees.

In our review of store price-match policies, we noted a report from Cheapism that found that some stores were inconsistent in their application of those policies. At Walmart (WMT), for instance, cashiers insisted on seeing competitors' ads to perform a price-match, despite a company policy that explicitly says that you don't need to show them.

We know it's not easy to educate every last employee about every last policy, especially at an enormous company like Walmart. But those policies don't mean much if the people who have to follow them haven't read them. Which segues nicely into ...

Photo: Walmart,

Retail employees also need to be informed about the products they're selling, so that they can give accurate advice to shoppers.

That means if you're buying a TV, you have the right to an employee who can tell you the difference between plasma and LED. If you're buying a bra, you have the right to a saleswoman who can properly fit you. If you're buying a computer, you have the right to a salesperson who can tell you whether or not you really need to pay for an antivirus program.

Having smart salespeople makes good business sense for retailers -- Best Buy (BBY), for instance, has realized that well-informed customer service is one of the few advantages it can wield over online competitors. But it's also a matter of consumer rights: If you're misled into buying the wrong TV, bra or software product and then find that you can't return it, that's money out of your pocket.

"Is there anything I can help you find?" is no longer the only question you're asked at a retail store. Store associates and cashiers may ask you to sign up for store credit cards and rewards programs; upon checkout, they might also ask for your zip code and email address.

Of course, you have every right to say no to these questions. But sometimes they won't take no for an answer -- I have dealt with pushy associates eager to get commissions on credit card applications, as well as cashiers insisting that I reveal my email address.

But giving them your email address invariably means getting marketing emails, and your zip code can be used to locate you and send you catalogs. Meanwhile applying for a store credit card can temporarily lower your credit score. Shoppers should be notified of the downsides involved with saying "yes" to any of these questions. And salespeople shouldn't be allowed to pressure you after you've said "no."
You're legally entitled to the price on the price tag. But there are still plenty of shenanigans happening in the background.

One trick: Creating the illusion of a discount by touting a high "original price" next to the ticket price. Kohl's (KSS) is dealing with a lawsuit claiming that it misled customers in this way, while J.C. Penney (JCP) was recently accused of fabricating prices to make its discounts look better.
And while we're at it, let's keep barcodes honest, too. Some retailers have dealt with barcode-scanning shoppers by covering the barcode on the box with one of their own creation; the custom code will confuse any price-comparison app. Retailers don't have to tell you all about the lower price you can get from a competitor, but they shouldn't actively hinder you from making an informed purchase.

There are a lot of things we wish retailers would do better. We hate having to wait in long lines at checkout, for instance. We hate that every retailer has its own return policy to pore through, with various exclusions and time limits. And we wish retailers didn't feel the need to hand us a mile-long receipt covered in promotions and surveys when we're just buying a pack of gum.

We left those grievances out of our proposed bill of rights, because this isn't meant to be a shopping wish list -- the focus here is on basic standards of fairness and honesty that will protect the shopper.

Still, we may have missed a few. If there are certain rights that you feel every shopper should be guaranteed, we'd love to hear about it. Give us a shout in the comments or send an email to

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