It's not legal, and since the camera was outside the fitting room it may not have been peering into the rooms themselves.
If it's a major department store usually they have checks and balances in place to prevent them from being sued. You can never be sure that someone's not being a dirty bird, but it makes it less likely than if you were at a local boutique.
Next time I would suggest standing in the fitting room and seeing if you can see the camera from the mirror. For the most part if you can't see the camera in the mirror the camera can't see you.
The reason they have cameras facing outside the dressing room stalls is because they need to see how many items you go in w/ and how many items you come out with before you hit the racks to dump off your unwanted items and exit the area.
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