McDonald's hit with class action alleging AI-powered menu price-fixing
MCD•McDonald's was sued in federal court in Chicago in a proposed nationwide class action alleging it coordinated menu prices through an AI-powered system. The company called the allegations speculative and uninformed, saying AI does not set menu prices and franchisees make their own pricing decisions.
1. Lawsuit alleges price coordination
The lawsuit, filed Friday, alleges McDonald's illegally coordinated menu prices across its franchises and company-owned restaurants using algorithms trained on nonpublic data. It claims the company conspired with independent franchisees in violation of US antitrust law.
2. McDonald's disputes claims
McDonald's said the allegations are speculative and uninformed. The company said AI does not set the price of a Big Mac or other menu item, franchisees make their own pricing decisions, and pricing recommendation tools and analytics are widely used across industries.
3. Potential class of millions
The Illinois plaintiff is seeking to represent potentially millions of McDonald's customers. The lawsuit cited a report that said McDonald's pricing engine analyzes data from millions of daily transactions across nearly 14,000 restaurants.
