On Monday, luxury department store Barneys New York made a $525,000 settlement in response to a racial profiling investigation by the State of New York. Nineteen-year-old Queens resident Trayon Christian used his savings to purchase a Salvatore Ferragamo belt at the Fifth Avenue store in Manhattan, only to be arrested shortly after leaving. The clerk who sold him the $350 belt had allegedly called the police claiming fraud. Apparently, the company has racial profiling ingrained into its employee policy. Security guards are told to watch minority customers in the store more closely than their white customers, and clerks are to prevent making sales to minority customers in order to avoid fraud investigations. The investigation also found that Barneys must have been collaborating with the NYPD by placing undercover detectives in their store.

These days, you can’t seem to look at the news without hearing about another unarmed black kid who was “accidentally” shot by police. Racial profiling is a not only a violation of human rights, but can also result in serious consequences for the innocent minority victim.

The police told Christian that his debit card must be a fake because a black man could never afford such an expensive item. He was then held at the police station for two hours until they realized that he was innocent. Christian, who is a student at the NYC College of Technology, had saved up to buy the belt because he wanted one like the Harlem rapper Juelz Santana. Lower class consumers are just as entitled as upper class ones to use their own money to buy a designer item, right? Isn’t such a notion the mere foundation of capitalism?

A belt similar to the one Trayon Christian purchased in April 2013. Thanks NY Post.

In luxury retail stores, customers are rarely asked for identification with their credit card because it is considered rude. Part of the luxury customer experience involves being treated well, because they are spending so much money. Also, the more accommodating a salesperson is to a customer, the more money the customer may spend in the store. The main purpose of a retail store is to put the customer’s needs first, as they are “always right.”

On the other hand, stores must also protect themselves with lost prevention (LP) policies. There are plenty of telltale signs that a person may be shoplifting, but being black or Latino is not one of them. Also if a customer is suspected of shoplifting, the salesperson is expected to provide even more service to deter them from stealing, as they are still technically considered a customer if they are in the store.

When I worked as a sales associate in a luxury mall, I went through intensive LP training, but race was never mentioned as any reason to be suspicious of customers. However, we were also constantly reminded that we were to be extra accommodating to customers as they were accustomed to a different level of service than in other malls. Wealthy customers were actually more inclined to try to get away with a quick buck than average ones. They almost expected us to make exceptions for them when it came to expired coupons or discounts they seemed to make up on their own. Shouldn’t that kind of behavior be seen as a bigger red flag when it comes to credit fraud?

Barneys’ claim that they are avoiding fraud investigations is completely invalid, as there are many other ways to prevent shoplifters. Perhaps they would save even more money if they taught their employees real lost prevention techniques, instead of taking shortcuts by racially profiling customers and outsourcing to the NYPD. A minority customer’s business should be just as valued as a white customer’s would be. Ultimately, the company lost even more money because they had to pay for a settlement. Christian also returned the belt shortly after his arrest because he no longer wanted to have anything to do with the company.

The battle is only halfway done, however, as there is a federal case that has yet to go to trial. Hopefully, the trial will result in further regulations in what stores can and cannot do as far as customer service and lost prevention policies. All customers, provided they are not trying to take advantage of the company, should be treated as equal opportunities to make a profit for both the salesperson and the company represented.

At the end of the day, a retail store must focus on making revenue and ensuring that customers will want to return for their services. Turning away a customer because of the color of their skin is ultimately bad business for everyone. Besides, as in Barneys’ case, what’s $350 in potential theft compared to over $500,000 in legal fines? That choice is ultimately up to the retailer.

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Katherine Fabian (@kafernn) is a recent graduate of Fordham University’s College at Lincoln Center and is currently applying to law schools, freelance writing, and teaching yoga. She hopes to one day practice fashion law and defend the intellectual property rights of designers.

Featured image courtesy of [Jim.Henderson via WikiMedia Commons]

Katherine Fabian

Katherine Fabian is a recent graduate of Fordham University’s College at Lincoln Center. She is a freelance writer and yoga teacher who hopes to one day practice fashion law and defend the intellectual property rights of designers. Contact Katherine at staff@LawStreetMedia.com.

The post Barneys Gets Busted: The Cost of Racial Profiling in Retail appeared first on Law Street.

Two classic New York City department stores—Barneys and Macy’s—are dealing with controversy regarding their racial profiling of any customer who is not white. In the past few weeks, at least four different individuals have come forward claiming that they were mistreated and suspected of shoplifting or fraud on the basis of race.

The story begins with an African-American college student named Trayon Christian, who was a freshman at the New York City College of Technology last spring. On April 29^th, he went into the popular store Barneys New York to buy a belt. The belt that he was looking for was a Ferragamo and cost $329. Like any 18-year-old kid, he admired his favorite celebrities and had seen some of them with the belt. So, he saved up money from his part time job to buy it for himself. Christian paid with his debit card, showed his ID when asked, and followed all of the general procedures required to make a purchase. He walked out of the store with the belt in a bag and a receipt, and was stopped right away by cops who yelled at him about how he was able to afford a designer belt. Immediately, the 19-year-old was accused of using a fake card. Christian was handcuffed, and then detained and interrogated for two hours until it could be determined that his card was, in fact, valid.

The next person to come forward was Kayla Phillips, and like Christian she was a young African-American student. She was purchasing a designer Celine purse for $2500. She had received a large, unexpected tax refund a few days before, and decided to use the extra money to treat herself and purchase a designer bag. She had a strikingly similar experience to Christian. She was followed by no less than four undercover cops and questioned about her ability to afford the bag. Like in Christian’s case, the officers were convinced that she was perpetrating credit card fraud.

A few days after these two stories broke, allegations also came out against Macy’s department store. Rob Brown, 29, is an actor who is currently on HBO’s hit show Treme. According to a suit filed this week by Brown, he went into Macy’s to buy a $1350 watch as a present for his mother. He was looking at a pair of sunglasses that caught his eye when he suddenly grabbed by three officers. According to the suit, the officers told him that the ID “was false and that he could afford to make such an expensive purchase.” Despite the fact that Brown showed them various forms of ID that clearly matched the card he was using, he was still put in handcuffs and detained for 45 minutes.

These three cases are in various stages of moving forward and list both these retailers as well as the NYPD. Now, New York Attorney General Eric Schneiderman has begun investigations into these complaints. The purpose is to determine if Barneys and Macy’s have violated various civil rights laws that prohibit racial discrimination. The AG has demanded that these stores release information about the stopping, detainment, and interrogations of various customers.

Barneys has released an apology, but these suits and investigation will rightly move forward. I would be entirely unsurprised if more claims come out against other companies in the coming days and weeks. It would be hard to imagine that Barneys and Macy’s profile in a way that is unique to those companies; it is much more probable that we’ll hear similar situations with Nordstrom, Saks Fifth Avenue, and others. It’s also hard to imagine that this is an issue unique to New York City, I would imagine such profiling happens around the country as well. This story that began with a teenage boy who just wanted to buy a new belt has the potential to turn into a major retail firestorm.

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Anneliese Mahoney (@AMahoney8672) is Lead 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.

Featured image courtesy of [Steve Depolo via Flickr]

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.

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