OSAKA — In a case that human rights lawyers and activists worry could condone racial discrimination against foreigners by Japanese businesses, the Osaka District Court rejected a lawsuit Monday that was filed by a black American man who was denied entry to a store apparently due to his color.

Steve McGowan, 41, a resident of Kyoto Prefecture, filed the 1.5 million yen suit after he was denied entry in September 2004 to a store in Osaka Prefecture that sells eyeglasses. He claimed the owner shouted at him to leave and told him he hated black people.

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