LOS ANGELES (AFP) - Trendy US clothing giant Abercrombie & Fitch agreed to pay 50 million dollars to settle a lawsuit alleging it discriminated against minorities by creating an "all-white" image, the parties said.
The US Equal Employment Opportunity Commission said the firm had agreed to stump up the huge payment to end a class-action suit and to change its hiring and advertising policies to include blacks, Hispanics, Asians and other minority ethnic groups on its staff and posters.
"This will have far-reaching effects on the youth-oriented retail clothing industry, said a trial attorney for the commission, Gregory Gochanour, of the settlement.
"We are hopeful that it will have a huge impact on Abercrombie & Fitch's image and policies. The company entered into this consent decree that shows a very real commitment to changing its practices," he told AFP.
Under the deal, 40 million dollars will be divided among the class-action litigants, who include employees, would-be employees and minority job candidates who claimed they were dissuaded from applying for jobs at Abercrombie & Fitch.
The remainder of the settlement will go toward legal and other fees linked to the action.
Under the settlement, the firm, famed for its glossy advertisements showing attractive young men and women in various states of dress, also agreed to hire a vice president for diversity to draw in more minorities.
In addition, it pledged to revise its marketing strategy to include pictures of members of ethnic minorities in its posters, catalogues, shopping bags and other publicity and marketing materials.
The Equal Opportunity Employment Commission joined several other interest groups as plaintiffs in the class-action lawsuit.
"This decree will ensure that the Abercrombie of the future is a changed Abercrombie, no longer one that defines itself through a racially exclusionary image and an all-white work force," said Thomas Saenz of the Mexican-American Legal Defense and Education Fund.
Under the settlement decree, approved Tuesday by Judge Susan Illston of the US District Court in San Francisco, Abercrombie denied engaging any discrimination.
"We have, and always have had, no tolerance for discrimination," the firm said in a statement.
"We decided to settle this suit because we felt that a long, drawn out dispute would have been harmful to the company and distracting to management."
11/16/2004 - 21:11 GMT - AFP