Macy's must pay a $650,000 fine to settle complaints that it's staffers wrongfully accused minority shoppers of stealing.
New York's Attorney General Eric Schneiderman started to investigate Macy's, which has 42 stores in New York State, in February 2013 after receiving complaints about racial profiling.
"The office has received complaints from close to two dozen African-American, Latino and other customers who are members of ethnic minority groups who claimed that they had been apprehended and detained at Macy's, despite not having stolen or having attempted to steal any Macy's merchandise," Schneiderman said in a press release.
Customers alleged that staffers at the flagship store in Herald Square in Manhattan "detained and falsely accused minorities at far greater rates than white customers of committing crimes," according to the release
Macy's will also have to designate an independent expert and hire a full-time security monitor to to ensure that the retailer complies with the settlement.
"We at Macy's are committed to fulfilling the ideals of diversity, inclusion and respect," said Macy's, in an email statement to CNNMoney.
Macy's also said that it recently settled "various lawsuits related to these allegations."
The settlement comes just one month after Macy's settled with Rob Brown, an actor from the HBO series "Treme" who accused staff of racially profiling him at the flagship store last year.