After an 18-month investigation, Macy’s has agreed to pay a $650,000 fine and hire an independent monitor to address complaints that minority shoppers faced heightened surveillance and, in some cases, wrongful detention at its flagship store in Midtown Manhattan.

The investigation, conducted by the state attorney general’s office, reviewed the internal “loss prevention” procedures employed by Macy’s at its Herald Square store as well as allegations that black and Hispanic shoppers were unfairly targeted by security officials. The inquiry found that Macy’s detained African-Americans, Hispanics and other minorities for allegedly shoplifting at significantly higher rates relative to whites.

The Macy’s investigation included a review of complaints from 18 minority shoppers who claimed they had been improperly detained at the Herald Square store. Among those who complained were a black woman confronted by security workers while riding an escalator with merchandise openly draped over her arm, and a black man in the store to exchange goods.

As part of the latest inquiry, investigators reviewed claims that some customers who spoke limited English had been denied an interpreter while being questioned about shoplifting accusations. The investigators also spoke with at least two Macy’s sales representatives who, the settlement agreement stated, said that store guards followed black and Hispanic shoppers “at rates far greater than that of white customers.”

Under the deal, Macy’s said that it would hire an independent expert responsible for improving and monitoring its antishoplifting efforts over the next three years. Macy’s also agreed to enhance its record keeping related to training and security; distribute an anti-racial-profiling memorandum to workers; and drop a policy that allows guards to stop shoppers who take an item more than two floors from where they picked it up without buying it.