Yeah. Refusual of service is the point....on the grounds theyre gay when they are not.
So you agree its legal issue then ?
No.
Refusal of service on the grounds that the business doesn't serve gay customers can be a legal issue, yes.
Whether or not the customer is really gay or not is not relevant.
It's the same principle for the refusal of service for any reason that is forbidden by civil rights laws. It doesn't matter if the customer is really in that protected category or not. That's how sting operations are conducted.
The basis of the offense is what the business person believes that customer is and the action he takes as a result; it's
not what the customer actually is.
Suppose two people go into a hotel, and they're signing to each other without speaking. Suppose the desk clerk refuses to provide them with required ADA accommodations for their room even though he believes the two people are deaf. Is he in violation even if the two people are actually hearing people working undercover to catch ADA violators? Yes.
The trick with your scenario is whether or not the business person states the reason for refusing service. If the business person states, "I refuse to serve gay people" then he is in violation of the law whether or not the customer is actually gay. If he doesn't state that, or gives some other reason, then the customer has no proof of the reason.
I suppose the customer could ask the business person, "Why are you refusing me? Do I look gay to you?"
But, as was posted, it is your thread. If it's your experience in your community that straight people are being falsely accused of being gay, and that's a problem, then I'm sorry. I'm afraid that's an issue outside the scope of the law.
BTW, Hubby was born and raised in MI, so I'm not a stranger to that climate.