Senator Elizabeth Warren and four other lawmakers questioned McDonald’s CEO Chris Kempczinski about the company’s algorithmic pricing tools in a letter dated November 2, requesting a response by November 16.
The letter questions whether the tools use individual data from McDonald’s loyalty program, how franchisees might be encouraged to use them and what antitrust review took place before deployment. The lawmakers said they were concerned the tools could push consumers to pay higher prices or facilitate collusion between franchisees.
McDonald’s has said its recommendations are not based on individual customers, that franchisees set their own prices and that the tools are not mandatory. It has also said AI does not set menu prices and that pricing recommendation tools and analytics are widespread. Two consumer class action lawsuits filed in recent weeks allege the company illegally coordinates menu prices through a centralized algorithmic pricing system; three franchisees previously told Reuters the recommendations widened price differences between nearby restaurants.
