A class-action lawsuit accusing U.S. fast-food giant McDonald's of antitrust violations was filed this week in federal court in Chicago. The plaintiffs allege that the company pressured franchisees by threatening the loss of their franchise agreements unless they used its proprietary artificial intelligence-driven "pricing engine," driving up the prices of items such as the Big Mac and french fries. According to the complaint, 95 percent of McDonald's U.S. locations are run by independent owners, yet the company monitors whether franchisees are following the pricing system's recommendations. The plaintiffs are seeking damages through a class action covering millions of consumers. In response, McDonald's told Reuters that franchisees set prices individually and that "AI is not setting the prices of the Big Mac or other menu items." The case appears to be the first in which franchisees of the same brand are being challenged over their use of shared pricing technology, and Daniel Francis of New York University School of Law believes a key issue will be how independently franchisees can set their own prices.
McDonald’s CorporationClass-action antitrust lawsuit alleges McDonald's pressured franchisees to use its AI pricing engine, raising menu prices.
McDonald's Holdings Company (Japan), Ltd.