Racial discrimination is a practice that, in most countries, has now been made illegal. Racial discrimination refers to any unequal treated that is placed upon a person because of their race. This can include denying a loan, refusing to provide housing, neglecting to give a promotion, or one of many other actions that limit another person based on their race. In Australia, for example, the Racial Discrimination Act of 1975 specifies racial discrimination as unlawful throughout Australia. The Racial Discrimination Act defines this type of discrimination as someone being treated unequally to another person of similar circumstances due to their race, specifically in employment, land, public places, and advertising.

In the United States, similar laws exist regarding racial discrimination, making it illegal to unlawfully discriminate against persons of any race. The law in the United States begins at a federal level, and additional laws may specify protection at a local level as well. If a person has been affected by racial discrimination, they can choose to file suit against the guilty party.