AI pricing lawsuit against McDonald's raises new antitrust questions
MCD•A proposed class action alleges McDonald's uses AI-powered technology to pressure franchisees into following pricing recommendations, driving up menu prices. McDonald's says franchisees set prices individually and its technology does not automate, coordinate or fix prices.
1. Lawsuit challenges pricing tools
A federal antitrust lawsuit filed in Chicago alleges McDonald's uses AI-powered technology to pressure franchisees to follow its pricing engine, potentially raising menu prices. The proposed class action seeks unspecified damages for millions of customers.
2. McDonald's denies price automation
McDonald's says its franchisees set prices individually and that AI does not set the price of a Big Mac or other menu items. The company says its technology does not automate, coordinate or fix prices, but helps franchisees make decisions for their businesses and customers.
3. Courts weigh algorithmic pricing
The lawsuit is described as the first to argue that franchises under the same brand misused shared pricing technology to overcharge customers. Other algorithmic-pricing cases have had mixed results, including a federal appeals court decision reinstating a lawsuit alleging casino-hotels used shared software to raise room rates.
