Cosmetics retailer Sephora deactivated the online accounts of Asian customers out of suspicion they were buying items in bulk to resell them for a profit, a class action lawsuit filed Tuesday claims.
Four American women of Chinese descent claim Sephora USA Inc. was motivated by racist stereotypes when the company cancelled the accounts of hundreds, and maybe thousands, of Asian shoppers following a promotional sale on Nov. 6, Reuters reported.
During the sale the website crashed, which Sephora said was the result of customers cashing in on the low prices to buy items in bulk and resell them at a higher price.
However, only customers with Asian names or email addresses with Asian domains were locked out of their accounts within hours of the sale, the lawsuit claims according to Reuters. Facebook erupted with complaints from users with Asian names about their inability to log onto their accounts.
"This is an egregious example of a retailer singling out individuals based on racial stereotypes," lawyer Doug Wigdor, who represents the plaintiffs, told the New York Daily News.
The plaintiffs- Xiao Xiao and Tiantian Zou, both from New York City, and Jiali Chen of Ohio and Man Xu of Philadelphia- are seeking an unspecified amount in damages.
Sephora did not return Reuters' request for comment.
But the international retailer, founded in Pairs in 1970, said reselling is "a pervasive issue," according to the Daily News.
