Macy's will pay a $650,000 fine to settle complaints that workers wrongfully accused minority shoppers of stealing.
The retailer will also hire a fulltime security monitor and designate an independent expert to make sure stores comply with the settlement.
New York's Attorney General started investigating Macy's in February 2013 after receiving complaints about racial profiling of shoppers.
African-American, Latino and other minorities said they were detained at Macy's even though they had not stolen any merchandise.
In an email to CNN, Macy's said it recently settled "various lawsuits related to these allegations."
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