Last week, I wrote about Barney’s New York’s settlement of their racial profiling case. Well, this week another major retailer that was under investigation by the New York Attorney General’s office has settled its racial profiling case. Macy’s announced today that it would be paying $650,000 in penalties and fees to settle its own case.
The investigation began after in February 2013, the Civil Rights Bureau received complaints regarding Macy’s treatment of minority customers. These customers claimed that they had been detained at the retailer, even though they had not stolen any merchandise and believed that their detainment was due to racial profiling.
By Mike Strand via Wikimedia Commons
Customers also claimed that those who spoke a minimal amount of English were not allowed to make a phone call, denied access to an interpreter and were forced to sign notices despite being unable to read the notices.
J.C. Penney Co. Inc. is fighting the ruling made in court last month finding the retailer liable for tortious interference in Macy’s Inc.’s contract with Martha Stewart Living Omnimedia Inc. The ruling ordered the the retailer to pay damages and attorney fees.
In it’s appeal, J.C. Penney stated that they “respectfully disagree with and are disappoint by this outcome. The company does not believe that money damages are warranted.
Macy’s responded to the filing by stating that they believe that the appellate court will affirm Justice Jeffrey Oing’s findings. In addition Macy’s has stated that they plan to appeal the part of the finding denying Macy’s punitive damages, as they believe that the facts of the case justify punitive damages.
This all began when Macy’s sued J.C. Penney and MSLO in 2012 for breaching an agreement that guaranteed exclusive rights to sell Martha Stewart Living products in Macy’s stores.
source: “J.C. Penney’s Files Appeal in Macy’s Case,” Women’s Wear Daily.
In early 2012, Macy’s Inc. filed a lawsuit against J.C. Penney Co. Inc. and Martha Stewart Living Omnimedia claiming tortious interference and breach of contract because of J.C. Penney’s arrangement with MSLO for pop-up shops in their stores.
Penney’s entered into this agreement with MSLO despite the fact that MSLO already had a contract with Macy’s for a line of exclusive Martha Stewart branded home goods. This agreement between MSLO and Macy’s dated back to 2006. Under the agreement that Penney’s entered with MSLO, the retailer would sell Martha Stewart goods, as well as purchasing 11 million shares of MSLO for $3.85 million and receive two seats on the company’s board.