McDonald’s sued over AI tool that recommends prices to US franchisees
McDonald's is facing a federal lawsuit in Illinois alleging that its AI-enhanced pricing tool violates antitrust laws. The tool, used by franchisees to set menu prices, allegedly shares nonpublic data with competing franchisees. McDonald's has been using this pricing platform for over a decade, stating it helps franchisees make informed decisions about menu prices based on factors like location and competitors' prices.
However, the lawsuit argues that the tool enables "algorithmic price-fixing aimed at customers who are already stretched thin." McDonald's has denied the allegations, asserting that franchisees, not the company, determine menu prices, and that the tool merely provides context, not the final pricing decisions. The lawsuit was filed on behalf of a DeKalb, Illinois consumer and seeks to certify the case as a class action, demanding damages and preventing McDonald's from enforcing agreements that restrict competition.
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