McDonald’s Sued Over AI Pricing; Consumers Allege Algorithm Helped Franchise Locations Collude on Prices.
57 minutes ago
Beating AI News: McDonald’s AI Pricing System Faces Antitrust Lawsuit An Illinois customer named Michael Thomas has sued McDonald’s in Chicago federal court, seeking to file a class-action lawsuit on behalf of potentially millions of U.S. consumers. The complaint alleges the fast-food giant used AI to coordinate menu prices between its franchise and company-owned locations, violating U.S. antitrust laws. The suit claims McDonald’s aggregated non-public transaction data from all its stores into a single machine learning “pricing engine” to provide price recommendations to each location. The plaintiff argues franchisees are independent competitors that should set their own prices, adding that pooling rival data and issuing recommendations via a single system could reduce existing price competition between stores. The complaint also directly cites a prior Reuters investigation into the system. McDonald’s denied the allegations, calling the claims “speculative and based on a misunderstanding of the facts.” The company emphasized the AI does not directly set prices for Big Macs or other menu items, noting franchisees retain final pricing authority. McDonald’s previously also published a statement clarifying that price recommendations are merely advisory, and franchisees may choose not to adopt them.
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