Retail store Macy's agreed to pay $650,000 to settle a 16-month investigation into allegations of racial profiling and false detentions of its customers.

Macy's and New York State Attorney General Eric Schneiderman announced the settlement on Wednesday that addressed more than a dozen complaints at the store's flagship Herald Square location in New York City.

Schneiderman's office touted the agreement, which follows closely the 50th anniversary of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, region, sex or national origin.

"Recent allegations of racial profiling at some of New York's most famous stores stand as a stark reminder that the protections afforded by the Civil Rights Act of 1964 are still needed today -- and that equal justice under law remains an American ideal we are striving to attain," Schneiderman said in a statement.

According to the New York attorney general, the Macy's settlement will ensure that people are not "unfairly singled out as a suspected criminal" as soon as they enter New York shops and establishments.

Macy's stated the company "strictly" prohibits all forms of discrimination and is committed to diversity in their stores and offices. The company added that it will work "tirelessly" to ensure consumers feel welcomed and treated with respect at their stores

"We have a proven track record of reflecting the diverse communities we serve in every aspect of our business -- including hiring, associate development, purchasing, community support, visual presentation and advertising. Our plans for moving forward further reinforce that commitment," said Macy's in a statement.

The investigation of the alleged racial profiling and false detentions began in February 2013, when minority customers filed several complaints with the attorney general's Civil Rights Bureau. Schneiderman's office revealed approximately two dozen Latino, African-American and other ethnic groups were apprehended and detained at Macy's, despite not stealing any of the company's products. Consumers claimed they were racially profiled at the Herald Square Macy's location. The attorney general further disclosed the flagship store falsely accused minorities of committing crimes "at far greater rates" than white consumers.

The complaints also alleged Macy's improperly engaged in its apprehensions and detentions. Macy's employees allegedly prohibited suspected customers from making a phone call or accessing an interpreter and made customers sign documents despite having limited English skills. The attorney general's office also met with former Macy's sales representatives who worked at the Herald Square location, who stated the company does follow African -Americans, Latinos and other minority customers at higher rates than white patrons.

The investigation found Macy's failed to take appropriate measures to "adequately and quickly address" the racial profiling issues alleged in its New York stores. In addition, the attorney general's office concluded Macy's loss prevention employees lacked guidance and training on how to make proper detentions and collect data when interacting with a suspected consumer.

In addition to the $650,000 settlement, terms of the agreement include the designation of an independent expert on anti-discrimination laws and racial profiling who will report to the attorney general. Macy's also has to employ an internal full-time security monitor to follow the company's loss prevention policies and practices. The company must also publish and post its Customers' Bill of Rights in English and Spanish in prominent locations within each New York store and on its official website.

The agreement with New York State also requires Macy's to adopt new policies on anti-profiling, loss prevention detention and access to the company's closed-circuit television rooms for external law enforcement officers. Macy's will also train employees on anti-profiling and interview tactics in order to increase respect for detainees in custody.

The Macy's settlement follows an agreement by New York State with Barneys New York. Barneys also encountered racial profiling allegations and was required to pay $525,000 in fees and penalties and adopt new policies and procedures.

"Discrimination is wrong. Period. And it is unacceptable that every day thousands of New Yorkers are forced to endure racial discrimination in their daily lives," said State Senator Gustavo Rivera, D-Bronx. "Hopefully, [the Macy's] agreement will send a strong message to anyone who would discriminate that their actions have consequences, and they will be held accountable."

The Bronx has one Macy's store in the Parkchester neighborhood, and a second location at the borough's new Mall at Bay Plaza is scheduled to open in late August.

"To be clear, our company's policies strictly prohibit any form of discrimination or racial profiling and any occurrence of such behavior will not be tolerated in our organization," Macy's added.