Makeup Retailer Sephora Accused of Racial Discrimination

There have been multiple claims recently of big retailers profiling and discriminating against customers of certain races. Law Street’s own Katherine Fabian did a great piece on the discrimination allegations surrounding the popular department store Barney’s. Most of these allegations involved retail workers being asked to follow certain customers–usually black–around stores, or police officers accusing them of using fake credit cards. But an entirely new racial profiling case is dominating the retail news this week, and it’s all about the makeup and cosmetics giant Sephora. There is a lawsuit in progress against Sephora that claims they discriminated against Asian customers by shutting down their accounts and not allowing them to access the same deals as other customers.

If you shop regularly at Sephora you can gain access to particular deals, as well as rack up points that eventually lead to discounted products. A few weeks ago, Sephora announced a huge sale–20 percent off of pretty much anything for their top-purchasing customers. Of course, those customers went nuts over the sale, because it offered serious discounts on products that almost never see slashed prices.

They went so nuts, in fact, that they crashed Sephora’s website. Sephora blamed the crash on people trying to buy huge quantities of the discounted products in bulk, so that they could turn around and sell them in order to make a small profit. There is a known market for this kind of behavior. While the site was coming back online, multiple customers saw their accounts either deactivated or locked out.

There was one thing that a bunch of these locked out or deactivated customers found they had in common though. They were of Asian descent, particularly of Chinese descent. This was discovered when various annoyed customers complained on social media, and quickly began to see a theme.

Four of these customers–Xiao Xiao, Man Xu, Jiali Chen, and Tiantian Zou–have filed a class action suit against Sephora alleging racial discrimination. The suit claims that Sephora discriminated against anyone “of perceived Chinese/Asian descent based on the ill-founded and discriminatory belief that all Chinese/Asian customers abuse discount sales to engage in bulk purchase for re-sale.” Sephora patently denies that any sort of discrimination ever took place. A statement from their company reads:

This lawsuit significantly distorts the facts in this matter. We look forward to defending our actions in court. Among other points, we intend to make very clear that clients from a number of countries around the world have been impacted by a temporary block we needed to place on accounts in order to restore the functionality of our site during a surge of activity by resellers during a promotional event two weeks ago.

The lawsuit has officially been filed by the four women, who live in the United States and were formerly devoted Sephora customers, in the Southern District of New York U.S. District Court. While time will tell, I have a feeling that Sephora will have a hard time arguing that this was all just some horrible coincidence. We may soon see the makeup giant on the same shameful list as Barney’s and other stores that have gotten flagged for racial discrimination.

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.