The 37-year-old actress is said to have started shouting at shop assistants at the 'All Saints' store on Robertson Boulevard when they told her she had to pay full price, reported Sun Online.
She is alleged to have demanded a discount claiming she deserved it due to her fame.
"She was screaming. She had to be escorted out by security. She seemed drunk," a source said.
Reid had been shopping for an outfit for the Coachella Festival when the altercation is alleged to have taken place.
"Tara gets a huge discount with All Saints in the UK and Paris because she's a walking billboard for them. She gets photographed... So they give her huge hook-ups. We told them we get a discount, and they said they'd email the press team," said her representative.
"She was definitely not drunk. People love to say Tara's hammered and this and... Whoever is saying that is not on Team Tara," the representative added.
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