McDonald's hit with class action over menu prices
MCD•A proposed nationwide class action filed in federal court in Chicago alleges McDonald's used an AI-powered pricing system to coordinate menu prices across its franchises and company-owned restaurants. McDonald's called the allegations speculative and said AI does not set menu prices and franchisees make their own pricing decisions.
1. Lawsuit alleges price fixing
The complaint alleges McDonald's violated federal antitrust law by conspiring with independent franchisees to fix prices using algorithms trained on nonpublic data. It says the company has enforced a "coercive price-fixing agreement" since 2019 and seeks to represent potentially millions of McDonald's customers.
2. Company denies allegations
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, that it imposes no pricing mandates, and that franchisees make their own pricing decisions.
